Super contributions can come from you, your employer, your spouse or even the government. Understanding how your super works is essential for saving for retirement. To help you get the most out of your super, we’ve put together some info to help you understand your super contributions.
What’s the difference between concessional and non-concessional contributions?
Let’s break it down for you. Concessional contributions this opens in a new window are made before tax is taken out of your pay. You may know them as pre-tax contributions. These are the most common type of super contributions and include:
Employer contributions (also known as the Super Guarantee or SG).
Salary sacrifice super contributions – when you ask your employer to put part of your pay into your super.
Personal contributions you plan to claim as a tax deduction (you must have lodged a notice of intent to claim with you super fund!).
Concessional contributions are taxed at 15% when they enter your super fund. Under the current 2025-26 cap, you can contribute up to $30,000 for the year.
Non-concessional contributions this opens in a new window are a little bit different. They are made after you’ve paid income tax (this means they aren’t taxed again in your super fund). In 2025-26 financial year you can contribute up to $120,000 for the year – sometimes more if you use the bring-forward arrangement. Keep in mind that your super balance may affect how much you can contribute!
What are personal super contributions?
Personal super contributions are extra payments you make from your own money to grow your retirement savings.
If you want to claim a tax deduction on these contributions, they’ll be treated as concessional. That means your super fund will tax them at 15%. To do this, you’ll need let your super fund know by sending a notice of intent to claim a deduction this opens in a new window in the required time frames.
If you don’t claim a deduction, your contributions will be non-concessional. That just means the money has already been taxed so there’s nothing extra to worry about!
What's the difference between personal and voluntary contributions?
Personal contributions are payments you make from your own money, while voluntary contributions cover a wide range, including:
Personal contributions (with or without a tax deduction)
Spouse contributions
Contributions from other sources, like government co-contributions if you’re eligible.
Basically, if it’s not your employers’ compulsory contributions, it’s considered voluntary.
Can I use personal super contributions to reduce my capital gains?
No – capital gains tax (CGT) isn’t a separate tax. It’s just added to your total taxable income and is taxed at your usual income tax rate.
If you decide to make a personal super contribution, you can claim it as a tax deduction to help lower your taxable income. But your taxable income can’t be lowered below zero. Keep in mind your contributions will be taxed at 15% by your super fund as well.
When can I get a super co-contribution?
If you’re a low or middle-income earner and you make a personal after-tax contribution – the government might chip in too! This is called a super co-contribution this opens in a new window . You could get up to $500 extra added to your super, depending on your income and how much you contribute.
You don’t need to apply for a super co-contribution. We’ll work out if you’re eligible when you lodge your tax return and pay the money directly to your fund.
Can I withdraw non-concessional super contributions?
Usually, you can’t take out your non-concessional super contributions straight away. If you’ve gone over the contribution cap, you might decide to withdraw anything extra. Otherwise, you must meet a condition of release, like retiring or reaching a certain age, before you can access your super. There are limited situations when you can access your super early. Our article has everything you need to know about early release of super.
What happens if my super guarantee exceeds the concessional contributions cap?
If your employer’s super contributions (SG) go over the concessional cap, the extra amount will be counted as taxable income. This means:
The excess amount gets added to your income and taxed at your normal income tax rate, and
You can choose to withdraw up to 85% of the excess amount from your super to help pay the extra tax. So, while it’s not the end of the world, it can mean a bigger tax bill and a bit of admin to sort it out.
How do carry forward concessional contributions work?
Each year you can put a certain amount of money into your super from your before-tax income – like employer contributions or salary sacrifice. From 1 July 2024, that limit is $30,000.
Now, let’s say you didn’t use up all that limit in a previous year. Maybe you only put in $20,000. That means you’ve got $10,000 of unused cap just sitting there.
Thanks to the carry forward rule this opens in a new window , you can roll that unused amount into future years and use it to top up your super later on. If you’re eligible, unused caps will be carried forward automatically – you don’t need to do anything.
Here are a few quick things to keep in mind:
Your super balance must be under $500,000 at the end of the previous financial year to be eligible.
You can only carry forward concessional (before-tax) contributions, not after-tax ones.
You can only carry forward unused cap amounts for up to 5 years.
Why do I have to pay Division 293 tax?
Division 293 is an extra tax that kicks in when your income plus your concessional (pre-tax) super contributions goes over $250,000 in a financial year.
Normally, concessional contributions are taxed at 15%. But if you cross that $250k threshold, you’ll pay an extra 15% tax on the amount over the limit. That means you could pay up to 30% tax on some or all of your concessional contributions.
Div293 is designed to level the playing field – but it’s not just high-income earners it effects. Other reasons you may exceed the threshold include:
You made a capital gain from selling property or shares.
You received a termination payment, trust distribution or lump sum payment.
You used carry-forward concessional contributions.
We’ll work out if you need to pay Div293 after you lodge your tax return, and your super fund reports your contributions. If you’re affected, you’ll get a Division 293 notice letting you know how much extra tax you owe.
