Section 01

Contribution types: an overview

Super contributions fall into two broad categories: concessional (before-tax) and non-concessional (after-tax). Understanding the distinction matters because each type has its own cap, its own tax treatment, and its own set of eligibility conditions.

General information only. The contribution options described on this page are explanations of how each mechanism works - they are not recommendations. What is appropriate for any individual depends on their age, income, super balance, tax position, and personal circumstances. Consider speaking with a licensed financial adviser or SMSF specialist before acting on any contribution option.

Note for FY2026-27: Both concessional and non-concessional caps are scheduled to increase from 1 July 2026. The bring-forward and carry-forward rules will adjust accordingly. See the Contribution Caps Hub for the latest figures once released.

CC

Concessional contributions

Before-tax contributions. Includes employer contributions (including the superannuation guarantee), salary sacrifice arrangements, and personal contributions for which the member claims a tax deduction.

Taxed at 15% inside the fund when received - or 30% for higher-income earners subject to Division 293 tax. Count toward the annual concessional cap.

Cap for FY2025-26: $30,000 per year.

NC

Non-concessional contributions

After-tax personal contributions for which no tax deduction is claimed. No tax applies when received by the fund.

Subject to eligibility conditions based on total super balance (TSB) at the prior 30 June. Not available if TSB was $2M or more at 30 June 2025.

Cap for FY2025-26: $120,000 per year (subject to TSB eligibility).

OT

Other contribution types

Several contribution types sit outside the standard caps and are covered in dedicated sections below:

Carry-forward concessional contributions: Using unused concessional cap from prior years. Covered in Section 04.
Bring-forward arrangement: Contributing up to 3 years of the NCC cap in a single year. Covered in Section 05.
Spouse contributions and contribution splitting: Separate mechanisms for directing contributions toward a spouse's account. Covered in Section 06.
Government co-contribution: A matching government payment for eligible low-to-middle income earners. Covered in Section 07.
Downsizer contributions: From the proceeds of selling a main residence, available to members aged 55 and over. Covered in Section 08.
Structured settlement contributions: From personal injury compensation. Outside all caps - not covered in detail on this page.

▲ Why it matters

Contributions that exceed a cap are subject to penalty tax and in some cases must be withdrawn. Tracking contributions across all funds - not just the SMSF - is essential, particularly where a member also receives employer SG contributions into a separate account. The ATO matches data from all funds and will identify excess contributions.

Section 02

Concessional contributions

Concessional contributions are before-tax contributions taxed at 15% inside the fund. They are the most commonly used contribution type and are available through several mechanisms.

SG

Employer contributions (including SG)

Employer contributions - including the mandatory superannuation guarantee (SG) rate of 12% in FY2025-26 - are concessional contributions. They count toward the member's $30,000 annual concessional cap.

Trustees who are also employees should be aware that SG contributions made by their employer reduce the remaining cap space available for other concessional contributions. Monitoring the combined total during the year is important to avoid an accidental excess.

SS

Salary sacrifice

A salary sacrifice arrangement allows an employee to direct a portion of their pre-tax salary into super. The contribution is made by the employer on the employee's behalf and is classified as a concessional contribution.

Must be agreed with the employer before the income is earned - cannot be applied retrospectively
Reduces assessable income, which may affect income tax, Medicare levy, and means-tested government benefits
Counts toward the $30,000 concessional cap alongside SG contributions
Not all employers are required to offer salary sacrifice arrangements

For self-employed trustees or those without access to salary sacrifice, personal deductible contributions may achieve a similar outcome.

PD

Personal deductible contributions

Members who are not covered by salary sacrifice - including the self-employed and those not in employment - can make personal contributions and then claim a tax deduction, treating an after-tax contribution as concessional.

To claim the deduction:

A valid Notice of Intent to Claim a Deduction must be lodged with the fund before lodging the personal tax return for that year
The fund must acknowledge the notice
The contribution must have been made before 30 June to count in that financial year

The deduction reduces taxable income in the same way salary sacrifice does, but is claimed through the tax return rather than at source.

D2

Division 293 tax

Higher-income earners with combined income and concessional contributions above $250,000 pay an additional 15% tax on concessional contributions via Division 293 tax. This brings the effective rate on those contributions to 30% rather than 15%.

Division 293 tax is assessed by the ATO after the annual tax return is lodged. It can be paid personally or from the super fund. The payment method has no effect on the contribution itself but affects cash flow inside the fund.

▲ Why it matters

The Notice of Intent to Claim a Deduction is time-sensitive. If a member makes a personal contribution intending to claim a deduction but fails to lodge the notice before the return is lodged - or before the fund processes certain transactions such as commencing a pension or rolling over the balance - the deduction is lost and the contribution remains non-concessional. This mistake is both common and irreversible.

Section 03

Non-concessional contributions

Non-concessional contributions (NCCs) are after-tax personal contributions for which no deduction is claimed. They are one of the most direct ways to build super wealth for members who have after-tax funds available - provided eligibility conditions are met.

EL

Who can make NCCs?

To make an NCC in FY2025-26, a member must:

Have a TSB of under $2M at 30 June 2025
Be under age 75 (members aged 67-74 must also meet the work test or work test exemption)
Not have triggered an excess NCC in the current year

Members with a TSB of $2M or more at 30 June 2025 have an NCC cap of $0 - they cannot make NCCs at all in FY2025-26.

EX

Excess NCCs

Contributions that exceed the NCC cap give rise to a choice:

Withdraw the excess plus associated earnings from the fund. The earnings component is included in assessable income but no additional penalty applies to the excess itself.
Leave the excess in the fund and pay a flat 47% tax on the excess amount.

Most members choose to withdraw excess NCCs. Leaving them in the fund and paying 47% is rarely the better outcome.

WT

Work test for members aged 67-74

Members aged 67 to 74 must meet the work test to make personal contributions (both concessional and non-concessional). The work test requires at least 40 hours of paid work in any 30-day period during the financial year in which the contribution is made.

A work test exemption is available in the first year a member fails the work test, provided their TSB was under $300,000 at the prior 30 June. This exemption can only be used once.

Members aged 75 and over cannot make NCCs under any circumstances other than downsizer contributions, which have separate rules.

▲ Why it matters

The TSB threshold that cuts off NCC eligibility ($2M) is measured at 30 June of the prior year - not at the date the contribution is made. A member whose TSB was $1.95M at 30 June 2025 remains eligible to make NCCs in FY2025-26 even if their balance has grown above $2M during the year. Equally, a member whose TSB was $2.01M at 30 June 2025 cannot make NCCs regardless of how their balance has moved since.

Section 04

Carry-forward concessional contributions

The carry-forward rule allows eligible members to use unused concessional cap from prior years, potentially making a larger concessional contribution in a single year than the standard annual cap permits.

CF

How carry-forward works

If a member did not fully use their concessional cap in any year from FY2018-19 onwards, the unused amount accumulates and can be carried forward for up to 5 years. The oldest unused amounts expire first, which means they must be used before newer amounts.

Unused carry-forward amounts expire after 5 years. For example, any unused cap from FY2020-21 that has not been used will expire at the end of FY2025-26 and cannot be carried into future years.

Trustees can check their available carry-forward balance instantly in ATO Online Services via myGov - no manual calculation is needed.

EL

Who is eligible?

To use carry-forward concessional cap space, the member's TSB must have been under $500,000 at 30 June of the prior financial year.

Members with a TSB of $500,000 or more at the prior 30 June are not eligible to use carry-forward amounts, even if unused cap has accumulated.

All usual concessional contribution rules still apply - the contribution must meet the conditions for concessional treatment and count toward the member's total concessional amount for the year.

▲ Why it matters

Unused carry-forward amounts expire after 5 years and cannot be recovered once lost. Members who believe they have accumulated significant unused cap should verify the available amounts through myGov and discuss the timing with their adviser. FY2020-21 unused amounts expire at the end of FY2025-26 - this financial year is the last opportunity to use them.

Section 05

The bring-forward arrangement

The bring-forward arrangement allows eligible members to contribute up to 3 years' worth of the non-concessional cap in a single financial year, rather than being limited to $120,000 per year. It is triggered automatically when NCCs exceed the standard annual cap.

BF

How bring-forward is triggered

A member triggers the bring-forward arrangement when they make NCCs in excess of the standard annual cap ($120,000) in a single financial year. Once triggered:

The bring-forward period begins (2 or 3 years, depending on TSB)
The total amount that can be contributed across the period is fixed at the cap applicable when the arrangement is triggered
No further NCCs can be made above the bring-forward limit until the period ends

Members can also choose to make a single large NCC up to the maximum bring-forward amount in one year, consuming the entire period in a single transaction.

TI

Bring-forward tiers for FY2025-26

The amount available depends on the member's TSB at 30 June 2025:

TSB at 30 June 2025	Maximum NCC	Bring-forward period
Under $1.76M	$360,000	3 years
$1.76M to under $1.88M	$240,000	2 years
$1.88M to under $2M	$120,000	No bring-forward
$2M or above	$0	Not eligible

Source: ATO. Thresholds reflect the general transfer balance cap of $2M from 1 July 2025. See the Contribution Caps Hub for full detail.

AG

Age conditions

Members under age 67 can trigger the bring-forward arrangement without meeting a work test
Members aged 67-74 can trigger the bring-forward, but must meet the work test (or work test exemption) in each year of the period in which they make NCCs
Members aged 75 and over cannot trigger or use a bring-forward arrangement

EP

Existing bring-forward periods

A member who triggered a bring-forward arrangement in a prior year may still be within that period. Making additional NCCs during an active bring-forward period counts against the remaining cap space for that period - it does not reset or extend the arrangement.

Members should confirm whether an existing bring-forward period is active before making any NCC in the current year.

▲ Why it matters

The bring-forward cap is fixed at the amount applicable in the year the arrangement is triggered. If the NCC cap increases in subsequent years due to indexation, the bring-forward limit does not increase with it - it remains at the amount set in the trigger year. For members near the TSB thresholds, the timing of when the bring-forward is triggered can make a material difference to the total amount available to contribute.

Section 06

Spouse contributions and contribution splitting

Two separate mechanisms exist for directing super contributions toward a spouse's account. They operate very differently and serve different purposes. Confusing the two is a common mistake.

SC

Spouse contributions

A spouse contribution is an after-tax contribution made directly into the other person's super account during the current financial year. The contributing spouse may be eligible for a tax offset of up to $540 per year.

Eligibility for the tax offset:

The receiving spouse must have assessable income (including reportable fringe benefits and reportable employer super contributions) of under $40,000
The full $540 offset is available where the receiving spouse's income is under $37,000
The offset phases out between $37,000 and $40,000 and is nil above $40,000
The receiving spouse must be under 75 and meet any applicable work test requirements

The contribution is a non-concessional contribution for the receiving spouse and counts toward their NCC cap.

CS

Contribution splitting

Contribution splitting allows a member to transfer up to 85% of their concessional contributions made in one financial year into their spouse's super account. It is not a new contribution - it is a transfer of existing concessional contributions already made.

Key points:

The application must be made to the fund after the end of the financial year in which the contributions were made, and before the end of the following financial year
The amount split does not count toward the receiving spouse's contribution caps
The split reduces the contributing spouse's super balance
The receiving spouse must be under preservation age, or between preservation age and 65 and not retired
Contribution splitting does not affect the contributing spouse's own transfer balance cap position

CM

When each mechanism is relevant

Both mechanisms are commonly considered by couples where one spouse has a significantly lower super balance than the other - for example, where one partner has spent time out of the workforce for caring responsibilities.

The key differences in practice:

Spouse contributions are made now, in the current year. The contributing spouse makes a new after-tax payment into the receiving spouse's account and may receive an immediate tax offset.
Contribution splitting moves concessional contributions that have already been made. The application is made in the following financial year. There is no immediate tax offset - the benefit is building the receiving spouse's balance using amounts that were already in the fund.

Whether either option is appropriate depends on individual circumstances including income, tax positions, balance levels, and retirement timelines.

▲ Why it matters

Contribution splitting and spouse contributions are two entirely different mechanisms with different timing, eligibility, and tax implications. Treating them as interchangeable is a common mistake. Confirm the correct approach with a financial adviser or SMSF specialist before acting on either option.

Section 07

Government co-contribution

The government co-contribution is a payment made directly by the government into an eligible member's super account when they make a personal after-tax contribution. It does not require a separate application - the ATO calculates and pays it automatically after the member's tax return is lodged.

GC

How the co-contribution works

The government contributes 50 cents for every $1 of eligible personal after-tax contributions, up to a maximum of $500 for FY2025-26.

The maximum co-contribution is available to members with income at or below the lower income threshold. The entitlement phases out between the two thresholds and reaches nil at the upper threshold.

Income thresholds for FY2025-26:

Lower threshold: $47,488 (full $500 co-contribution)
Upper threshold: $62,488 (no co-contribution)
Between $47,488 and $62,488: the co-contribution reduces proportionally

Thresholds are indexed annually. Confirm the current figures at ato.gov.au in future years.

EL

Eligibility conditions

To receive a co-contribution, the member must:

Make at least one personal after-tax contribution to super during the financial year - the contribution must not be claimed as a tax deduction
Have total income below the upper threshold ($62,488)
Have at least 10% of total income from employment, carrying on a business, or both
Be under age 71 at the end of the financial year
Not hold a temporary visa at any point during the financial year
Lodge a tax return for the relevant year

The ATO automatically calculates and pays the co-contribution after the tax return is lodged. No separate application is required.

▲ Why it matters

The co-contribution is often overlooked by SMSF trustees who assume it does not apply to them. For a member whose income falls within the eligible range - perhaps a partially retired member with modest employment or business income alongside investment income - making a personal after-tax contribution could attract a government co-contribution at no additional income tax cost. The contribution must not be claimed as a deduction for the co-contribution to apply.

Section 08

Downsizer contributions

The downsizer contribution allows older Australians to contribute a portion of the proceeds from selling their main residence into super, outside the standard contribution caps and TSB restrictions.

EL

Key eligibility conditions

To make a downsizer contribution, the member must:

Be aged 55 or over at the time the contribution is made
Be selling (or have sold) their main residence or a partial interest in it
Have owned the property (or their spouse owned it) for at least 10 years before the sale
Not have previously made a downsizer contribution from another property

The contribution must be made within 90 days of settlement. A downsizer contribution form must be provided to the fund before or at the time the contribution is made.

AM

How much can be contributed?

Up to $300,000 per person
Up to $600,000 per couple where both meet the eligibility conditions
The contribution cannot exceed the total proceeds from the sale
Both members of a couple can each contribute up to $300,000 from the same property sale, provided both meet the eligibility conditions independently

DI

What makes downsizer contributions different

Downsizer contributions do not count toward the non-concessional cap and are not affected by the TSB thresholds that restrict standard NCCs. A member with a TSB above $2M can still make a downsizer contribution.

However, there are important considerations:

Downsizer contributions are not tax deductible - they are after-tax contributions
They count toward the transfer balance cap when eventually moved into pension phase
They increase the member's TSB, which may affect eligibility for other contribution types in the following year
They are not eligible for the government co-contribution

▲ Why it matters

The 90-day deadline runs from the date of settlement, not the date of exchange or the date proceeds are received. Missing the 90-day window means the contribution cannot be treated as a downsizer contribution. Trustees selling their home and intending to use this option should confirm the settlement date and contribution deadline with their adviser well in advance of settlement.

Section 09

EOFY timing and common traps

The end of the financial year creates several contribution-related deadlines and risks. This section covers the most common timing issues that affect SMSF trustees in May and June each year.

30

The 30 June deadline

For a contribution to count in FY2025-26, it must be received by the fund by 30 June 2026. Key timing points:

Cash contributions: Must be in the fund's bank account by 30 June. A payment initiated on 30 June may not clear until the following business day - it would count in the next financial year.
Cheques: Must be received and deposited by 30 June. A cheque received after 30 June counts in the next year regardless of when it was written.
BPAY and electronic transfers: Processing times vary. Initiate at least several business days before 30 June to ensure cleared funds by the deadline.
In-specie contributions: Must be transferred to the fund by 30 June and properly documented, including a trustee resolution and a valuation at the date of transfer.

NI

The Notice of Intent timing trap

Members planning to claim a tax deduction for a personal contribution must lodge a valid Notice of Intent with the fund before the earlier of:

Lodging the personal tax return for that year
The day before the fund commences certain transactions with those funds (commencing a pension, rolling over the balance, or splitting the contribution)

Lodging the tax return before submitting the notice means the deduction is lost. This is irreversible.

CR

Contribution reserving

Some SMSF practitioners use a contribution reserving arrangement to allow a large contribution to be received by the fund before 30 June while allocating it to the member's account in the following financial year.

If the reserve is allocated within 28 days of the start of the new financial year, it can count toward the following year's cap. This can be useful where a member's cap has already been reached in the current year.

This is a complex area with specific requirements under ATO rulings. The fund's trust deed must permit unallocated reserves and specific trustee minutes are required. It should only be considered with appropriate professional advice.

TS

Checking the TSB before acting

Several contribution options depend on the member's total super balance at the prior 30 June:

NCC eligibility (cut-off at $2M)
Bring-forward tier (determines the maximum NCC available)
Carry-forward concessional contribution eligibility (under $500,000)

The relevant TSB is measured at 30 June of the prior financial year - not at the date the contribution is made. Trustees planning to make significant contributions should check their TSB position with their accountant or through ATO Online Services before acting, not after.

!

8 common EOFY contribution mistakes

1
Assuming the contribution was received because the payment was sent. The contribution must arrive in the fund's bank account by 30 June - not just be initiated. Allow several business days for clearing.
2
Lodging the tax return before submitting the Notice of Intent. Claiming a deduction requires the notice to be lodged with the fund first. Filing the return first permanently forfeits the deduction.
3
Not checking for an existing bring-forward period. Making an NCC without knowing whether a prior bring-forward is still active can produce an excess contribution. Check through ATO Online Services before acting.
4
Contributing after a disqualifying event. A member whose TSB was $2M or more at the prior 30 June cannot make NCCs in the current year regardless of when they discover this. Making a contribution without checking TSB creates an excess.
5
Missing the 90-day window for downsizer contributions. The deadline runs from the date of settlement, not exchange. Plan well ahead of settlement if intending to use this option.
6
Not accounting for SG contributions in the concessional cap. Employer SG contributions count toward the $30,000 cap. A member who also salary sacrifices or makes personal deductible contributions must include SG in the total - not just their voluntary contributions.
7
Treating contribution splitting as a current-year option. The application to split contributions must be made after the year they were made in. FY2025-26 contributions cannot be split until FY2026-27.
8
Confusing spouse contributions with contribution splitting. These are completely different mechanisms with different timing, eligibility, and tax treatment. Spouse contributions are made now, into the receiving spouse's account. Contribution splitting transfers concessional contributions already made and the application goes in next year. Mixing them up can result in an unintended excess or a lost tax offset.

Related resources: Cap amounts and TSB thresholds in full are on the Contribution Caps Hub. Key contribution deadlines are on the SMSF Compliance Calendar. Terms used on this page are defined in the SMSF Glossary.

SMSF Contribution Strategies Guide

Contribution types: an overview

Concessional contributions

Non-concessional contributions

Other contribution types

Concessional contributions

Employer contributions (including SG)

Salary sacrifice

Personal deductible contributions

Division 293 tax

Non-concessional contributions

Who can make NCCs?

Excess NCCs

Work test for members aged 67-74

Carry-forward concessional contributions

How carry-forward works

Who is eligible?

The bring-forward arrangement

How bring-forward is triggered

Bring-forward tiers for FY2025-26

Age conditions

Existing bring-forward periods

Spouse contributions and contribution splitting

Spouse contributions

Contribution splitting

When each mechanism is relevant

Government co-contribution

How the co-contribution works

Eligibility conditions

Downsizer contributions

Key eligibility conditions

How much can be contributed?

What makes downsizer contributions different

EOFY timing and common traps

The 30 June deadline

The Notice of Intent timing trap

Contribution reserving

Checking the TSB before acting

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