Concessional Contributions

This generally refers to any contribution which can be claimed as a tax deduction by the contributor.

The total amount of concessional contributions able to be paid is limited to an annual indexed cap of $30,000 per annum (2024/25 financial year).

These tax-deductible contributions will generally have a 15% contributions tax deducted by the super fund when receiving the contribution. The super fund is then required to remit this tax to the Australian Tax Office (ATO) in its annual income tax return. For example, if the contribution was $1,000, the tax applicable to the contribution would be $150 leaving a net after tax contribution in the member’s super account of $850.

An individual who has income (including some super contributions) over $250,000 may be required to pay an additional 15% tax on these contributions (known as Division 293 tax). This is paid personally following the lodgement of their tax return. If you are on very high income, you should seek tax advice to see if this rule will affect you.