Non-concessional contributions (NCCs) are after-tax contributions to superannuation — money you contribute from your bank account that has already been taxed as income. Unlike concessional contributions, NCCs are not taxed on entry to the fund. They are a powerful strategy for boosting your super balance when you have a lump sum to invest and your Total Superannuation Balance permits it.
What Are Non-Concessional Contributions?
Non-concessional contributions include:
- Personal contributions not claimed as a tax deduction
- Spouse contributions (made by one spouse into the other’s super)
- Certain re-contributed amounts (e.g., re-contributing COVID early release amounts under specific conditions)
They do not include:
- Employer SG contributions (always concessional)
- Salary sacrifice contributions (always concessional)
- Government co-contributions (government matches eligible contributions)
- Contributions from structured settlements or personal injury compensation (specifically excluded from NCC counting rules)
The Annual Cap — $120,000 (FY2025–26)
The annual non-concessional cap is $120,000 per financial year. This applies per person — both members of a couple can each contribute $120,000/year (total $240,000 combined).
NCCs do not receive a tax deduction — they are made from after-tax money. Inside super, they form the tax-free component of your super balance, which is not taxed on withdrawal.
The Bring-Forward Rule — Up to $360,000
If you are under 75 and your Total Super Balance (TSB) permits, you can bring forward up to 3 years of non-concessional caps and contribute up to $360,000 in a single financial year.
This is particularly useful when:
- Selling an investment property and wanting to shelter proceeds in super
- Receiving an inheritance or lump sum
- Downscaling a business and wanting to move sale proceeds into super
The bring-forward is automatically triggered when contributions exceed the annual $120,000 cap. You do not need to formally apply — just contribute, and the ATO will track the bring-forward window.
Total Super Balance (TSB) Eligibility Limits
Your TSB as at 30 June of the prior financial year determines your NCC eligibility:
| TSB | NCC access |
|---|---|
| < $1.68 million | $120,000 cap (full bring-forward of $360,000 available) |
| $1.68m – $1.79m | $80,000 (2-year bring-forward, max $240,000) |
| $1.79m – $1.90m | $40,000 (1-year cap only) |
| ≥ $1.90 million | Zero — no NCCs permitted |
If your TSB exceeds $1.9 million, you cannot make any non-concessional contributions. Exceeding the NCC cap results in a 45% tax on excess — the harshest tax outcome in the super system.
Why Make Non-Concessional Contributions?
NCCs may be worthwhile when:
- You’ve maximised concessional contributions and still have funds to invest — super’s low tax environment (15% on earnings, 10% on capital gains, 0% in pension phase) is more tax-effective than owning assets personally
- You have a lump sum to invest (inheritance, property sale, redundancy payment)
- You are approaching retirement and want to maximise your super balance before converting to pension phase
- Your partner has a lower super balance — spouse contributions can split wealth within a couple and improve retirement outcomes
Downsizer Contributions — Special Rules
Australians aged 55 or over who sell their principal home (held for 10+ years) can contribute up to $300,000 per person ($600,000 per couple) from the sale proceeds into super as a downsizer contribution — outside the standard NCC cap limits and TSB restrictions. This is a separate, additional contribution pathway.
Related Articles
- Super Contribution Limits Australia
- Concessional Contributions Australia
- Spouse Super Contributions Australia
- Super Co-Contribution Australia
- Retirement Investing hub
Frequently Asked Questions
Are non-concessional contributions taxed? No — NCCs are made from after-tax money and are not taxed on entry to the super fund. They form the tax-free component of your super balance. When withdrawn (in retirement), the tax-free component is not subject to income tax.
Can I contribute more than $360,000 in one year using non-concessional contributions? No — $360,000 over 3 years (via the bring-forward rule) is the maximum available to someone with a TSB below $1.68 million. Exceeding this results in 45% excess contribution tax on the overage.
Should I make non-concessional contributions or invest outside super? This depends on your age, marginal tax rate, TSB, and access needs. Super’s tax-advantaged environment is compelling — particularly close to retirement — but super is preserved until preservation age. Outside super, funds are more accessible. The right balance depends on your specific circumstances.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.