Non-concessional contributions (NCCs) are after-tax contributions you make to your super fund from money you have already paid income tax on. Unlike concessional contributions, they are not taxed again when they enter your fund — they go in completely tax-free. For FY2025–26, the annual non-concessional cap is $120,000.
NCCs are commonly used to accelerate super balances, particularly by people approaching retirement, business owners who have sold an asset, or those receiving an inheritance or property settlement. The bring-forward rule allows eligible individuals to contribute up to $360,000 in a single year, effectively pulling forward three years of cap space.
What Are Non-Concessional Contributions?
A non-concessional contribution is any personal contribution to super made from after-tax money — money on which you have already paid income tax at your marginal rate. Because tax has already been paid, these contributions enter your fund with no further tax deducted.
They form part of the tax-free component of your super account. This is important at withdrawal: amounts in the tax-free component are generally not taxed when you take them out, regardless of your age.
Common Sources of NCCs
- Personal bank transfers from savings or income already taxed
- Proceeds from selling an investment property (after CGT)
- Inheritance or gifts received
- Redundancy payments (the taxable component, once received)
- Business sale proceeds
- Contributions that exceed the concessional cap (excess concessional contributions automatically become NCCs, subject to rules)
What Does Not Count as an NCC
- Employer SG contributions (these are concessional)
- Salary sacrifice contributions (concessional)
- Government co-contributions (do not count toward any cap)
- Spouse contributions made into your fund (count toward your NCC cap, not your spouse’s)
- Downsizer contributions (separate cap — see below)
- Super splitting / rollover between funds
The Non-Concessional Cap for FY2025–26
The annual non-concessional contributions cap for FY2025–26 is $120,000.
This cap applies per individual. Spouses each have their own separate cap.
Historical Non-Concessional Caps
| Financial Year | Annual NCC Cap |
|---|---|
| FY2017–18 to FY2020–21 | $100,000 |
| FY2021–22 to FY2023–24 | $110,000 |
| FY2024–25 | $110,000 |
| FY2025–26 | $120,000 |
The NCC cap is set at four times the concessional cap. It increased to $120,000 in FY2025–26 following the concessional cap rising to $30,000.
What Happens If You Exceed the Cap
Excess NCCs are subject to the excess non-concessional contributions tax. You can choose to:
- Withdraw the excess from your fund. The earnings on the excess (calculated using ATO’s formula) are taxed at your marginal rate. This is the most common approach.
- Leave the excess in super. The entire excess is taxed at the top marginal rate (47% including Medicare levy). This is rarely the right outcome.
The ATO will contact you after your super fund reports contributions. Do not ignore ATO excess contribution notices.
Total Super Balance — Your NCC Eligibility Gate
Your ability to make non-concessional contributions depends on your total super balance (TSB) at 30 June of the prior financial year. If your TSB reaches the general transfer balance cap, you can no longer make NCCs at all.
For FY2025–26, with the general transfer balance cap at $2.0 million:
| TSB at 30 June 2025 | NCC Access |
|---|---|
| Under $1,760,000 | Full annual cap — $120,000/year |
| $1,760,000 to under $1,880,000 | Reduced access (see bring-forward table below) |
| $1,880,000 to under $2,000,000 | $120,000 only — no bring-forward available |
| $2,000,000 or more | Nil — no NCCs permitted |
Note: TSB thresholds are indexed and change each financial year. Always confirm current thresholds with the ATO before making large contributions.
Your TSB includes the balance of all your super accounts across all funds (accumulation and pension phase combined), plus certain other amounts. You can check your TSB via myGov linked to the ATO.
The Bring-Forward Rule — Contribute Up to $360,000 in One Year
The bring-forward rule allows eligible individuals to contribute up to three years’ worth of NCC cap in a single financial year. Instead of contributing $120,000 per year for three years, you can contribute up to $360,000 in one year and then make no further NCCs for the following two years.
This rule is particularly useful when you receive a large lump sum — from a property sale, business sale, or inheritance — and want to deposit it into super’s tax environment quickly.
Bring-Forward Thresholds for FY2025–26
Your TSB at 30 June 2025 determines how much bring-forward cap you can access:
| TSB at 30 June 2025 | Bring-Forward Available | Maximum Contribution (over 3 years) |
|---|---|---|
| Under $1,760,000 | Full 3-year | $360,000 |
| $1,760,000 to under $1,880,000 | 2-year | $240,000 |
| $1,880,000 to under $2,000,000 | None | $120,000 (current year only) |
| $2,000,000 or more | None | Nil |
How the Bring-Forward Period Works
Once you trigger the bring-forward rule by contributing more than $120,000 in a single year, a 3-year bring-forward period begins. During this window:
- You must not exceed your total allowed bring-forward amount across all three years
- You cannot start a new bring-forward period until the current one ends
- The annual cap in years 2 and 3 of the window is reduced to ensure the total stays within limits
Example: You have a TSB of $600,000 at 30 June 2025 and contribute $360,000 in FY2025–26 by triggering the bring-forward rule. Your NCC cap for FY2026–27 and FY2027–28 is $0. You cannot contribute NCCs again until FY2028–29.
If you contribute $200,000 in FY2025–26 (partial bring-forward), you have $160,000 of bring-forward cap remaining to use across FY2026–27 and FY2027–28.
Bring-Forward Age Limit
The bring-forward rule is available up to age 74. From 1 July 2022, the age limit was extended from 67 to 74. If you turn 75 at any point during the financial year, you cannot make voluntary NCCs in that year (except for downsizer contributions, which have separate rules).
Work Test — Abolished for Ages 67–74
From 1 July 2022, the work test for non-concessional contributions was abolished for people aged 67–74. You can now make NCCs at any time up to age 74, without needing to have worked 40 hours in any 30-consecutive-day period during the financial year.
| Age | Work Test for NCCs |
|---|---|
| Under 67 | No work test required |
| 67–74 | No work test required (abolished July 2022) |
| 75 or over | Cannot make voluntary NCCs |
This change was significant for retirees and semi-retirees who have large lump sums to contribute — they no longer need to arrange part-time work to remain eligible.
Downsizer Contributions — A Separate Option
Downsizer contributions are a distinct contribution type that allows eligible Australians to contribute up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home. These do not count toward the NCC cap and are not subject to the TSB gate — even people with balances over $2 million can make downsizer contributions.
Eligibility requirements include:
- Age 55 or over at the time of contribution
- The home must have been owned for at least 10 years
- The contribution must be made within 90 days of settlement
- The home must be in Australia (not foreign property)
Downsizer contributions are a powerful way to boost super late in retirement planning. They are made on a special ATO form and reported separately. Refer to the ATO’s downsizer contribution page for full eligibility details.
NCCs vs Concessional Contributions — Which Should You Prioritise?
The general principle is: concessional contributions first, then NCCs.
Concessional contributions reduce your taxable income (at the 15% rate), which directly reduces tax you pay this year. NCCs don’t reduce your current tax bill — they simply move already-taxed money into a low-tax environment for investment growth.
However, NCCs make sense when:
- You have maximised your concessional cap and still want to add more to super
- You have a large lump sum (property sale, inheritance) that needs a home quickly
- You want to build your tax-free component (relevant at withdrawal)
- Your spouse has a low balance — spouse contributions can help equalise super and have potential tax offset implications
The concessional cap is $30,000 for FY2025–26. See our full guide on concessional super contributions for how to maximise it first.
Spouse Contributions — Using the NCC Cap Strategically
If you contribute to your spouse’s super fund from your own after-tax money, those contributions count toward your spouse’s NCC cap (not yours). This is called a spouse contribution.
Spouse contributions may also attract a tax offset of up to $540 for the contributing spouse, if the receiving spouse’s income is below $37,000 (FY2025–26). The offset phases out completely once the spouse’s income exceeds $40,000.
This strategy can be useful for couples where one partner has a significantly lower super balance — for example, after a career break for caring responsibilities. The contribution goes toward equalising balances, which can be beneficial for Age Pension purposes and estate planning.
Frequently Asked Questions
Do I need to notify my super fund when making NCCs? No formal notice is required for NCCs — unlike personal deductible contributions (concessional), you do not need to lodge a Notice of Intent. Simply transfer the money to your fund with your member number as the reference. Confirm with your fund what bank details and reference codes to use.
Can I make NCCs if I’m still working? Yes. There is no restriction based on employment status for NCCs up to age 74. Whether you are working full-time, part-time, or not at all, you can contribute non-concessionally up to your cap (subject to your TSB).
What happens to my NCCs if I die? NCCs form part of the tax-free component of your super. When your death benefit is paid to a dependant (e.g. a spouse), it is generally tax-free. If paid to a non-dependant (e.g. an adult child), the tax-free component remains tax-free, but any taxable component is taxed at 17% (including Medicare levy). The tax-free component can therefore be advantageous in estate planning.
Can I withdraw NCCs at any time? No. Super is preserved — you generally cannot access contributions regardless of type until you meet a condition of release (reaching preservation age and retiring, turning 65, etc.). NCCs go into the same locked pool as all other super money.
My employer contributed more than $30,000 in SG this year. Does the excess automatically become NCCs? If your employer contributions exceed the concessional cap (unlikely unless your salary exceeds the maximum super contribution base of ~$250,000), the excess is treated as excess concessional contributions, not automatically as NCCs. The rules are complex — contact the ATO or a financial adviser if you believe you may be in this situation.
For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.