What are concessional contributions?

Superannuation is designed to be a tax-effective way to save for retirement, but did you know there are limits on how much you can contribute both before and after tax?
Understanding the difference between concessional and non-concessional contributions, and the way each is treated, may help you make the most of your super account.
What are concessional contributions?
Concessional contributions, also called before-tax contributions, are the funds that go into your super account from your before-tax income.
Your concessional contributions can come from a few different sources, such as employer superannuation guarantee amounts, a salary sacrifice arrangement you’ve made with your employer, or tax-deductible contributions (e.g., if you’re self-employed or decide to make extra contributions yourself).
Concessional contributions typically make up the bulk of your super savings and are generally taxed at 15%, according to the Australian Tax Office (ATO).
What is the concessional contribution cap?
For the 2021-22 financial year, the concessional contribution limit (or cap) is $27,500. The ATO explains that any concessional contributions you make above the cap are included in your taxable income and are taxed at your marginal tax rate, plus an excess concessional contributions charge.
In the past, there were different limits for concessional contributions depending on your age, but from the 2017–18 financial year onwards the rules were simplified. Now, the limit is $27,500 regardless of your age.
An important point to note is that if you split your before-tax contributions and give some to your spouse, these contributions still count towards your concessional cap.
What are carry-forward concessional contributions?
If you have not reached the concessional contribution cap for a particular financial year, you may be able to carry the difference forward to increase your cap in a subsequent year.
This carry-forward rule (not to be confused with the bring-forward rule we’ll cover later on in this article) only applies to unused concessional cap amounts from July 2018 onwards and any amounts eligible to be carried forward expire after five years.
You can only carry forward concessional contributions if your super balance was less than $500,000 at the end of 30 June in the previous year, the ATO says. Carry-forward concessional contributions are sometimes referred to as ‘catch-up’ contributions.
What are non-concessional contributions?
Non-concessional contributions are, as you probably guessed, super contributions made from your after-tax income.
From 1 July 2021, the annual non-concessional contributions cap is $110,000, but the bring-forward rule allows eligible people to increase this amount by using some of their cap from future years in the current year.
Non-concessional contributions aren’t taxed when they’re received by your super fund, but once the money is added to your account, any investment earnings will be subject to the usual superannuation tax rate of up to 15%, according to the ATO. When you access your super in the future, your non-concessional contributions will be returned to you tax-free.
If you make non-concessional contributions, you may also be eligible for a super co-contribution up to $500 from the Australian Government. This benefit applies to low- or middle-income earners, and is worked out based on both your income and the amount you add to your super account. There’s no need to apply for it, and the benefit is paid automatically to your super account when you lodge your tax return, if your super fund has your tax file number (TFN).
From the 2021-22 financial year onwards, if your total super balance is greater than $1.7 million on 30 June in a given financial year, your non-concessional contributions cap and bring-forward amount available will be $0 in the subsequent year.
How to stay within your super contributions caps
Exceeding the caps on super contributions can be costly, as extra tax and other costs may apply, according to the ATO.
The ATO says that you may be able to avoid going above the caps by taking steps, such as:
- being aware of what your current caps are
- keeping tabs of what your super balance is
- checking when your employer (or employers, if you have more than one job) pays the contributions and when they were received by your super fund. The ATO says contributions count towards a cap in the year your super fund receives them, not when they were paid.
- considering stopping or reducing any before-tax voluntary contributions to your super, if you think you may go over your concessional contributions cap in the current financial year.
If you are unsure about how the caps may affect you based on your circumstances, or are looking for guidance about how to maximise your retirement savings using concessional or non-concessional contributions, it may be beneficial to seek the support of a financial adviser, either through your super fund if advice is available or from an external financial planner.
Compare Superannuation with Canstar
The table below displays some of the superannuation funds currently available on Canstar’s database for Australians aged 30 to 39 with a super balance of up to $55,000. The results shown are sorted by Star Rating (highest to lowest) and then by 5 year return (highest to lowest). Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s superannuation comparison selector to view a wider range of super funds. Canstar may earn a fee for referrals.


- Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated.
- The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product.
- Performance information shown is for the historical periods up to 31/05/2024 and investment options noted in the table information.
- Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here.
- Performance data may not be available for some products. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown.
- Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.
- Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. See our Detailed Disclosure.
- Not all superannuation funds in the market are listed, and the list above may not include all features relevant to you. Canstar is not providing a recommendation for your individual circumstances.
- Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
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Performance and Investment Allocation Differences
- Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology.
- Some providers use different age groups for their investment profiles which may result in you being offered or being eligible for a different product to what is displayed in the table. See here for more details.
- Australian Retirement Trust Super Savings’ allocation of funds for investors aged 55-99 differ from Canstar’s methodology – see details here.
- The Australian Retirement Trust Super Savings (formerly Sunsuper for Life) product may appear in the table multiple times. While you will not be offered any single investment option, this is to take into account the different combinations of investment options Australian Retirement Trust may apply to your account based on your age. For more detail in relation to the Australian Retirement Trust (formerly SunSuper for Life) product please refer to the PDS issued by Australian Retirement Trust for this product.
- Investment profiles applied initially may change over time in line with an investor’s age. See the provider’s Product Disclosure Statement and TMD and in particular applicable age groups for more information about how providers determine their investment profiles.
Main image source: farland2456/Shutterstock.com
This article was reviewed by our Sub Editor Jacqueline Belesky before it was updated, as part of our fact-checking process.

Sean Callery is a former Deputy Editor at Canstar. When at Canstar, he and his team covered just about every finance and lifestyle topic under the sun, from property to budgeting to the nitty-gritty of financial products like home loans, superannuation, and insurance. Sean has written and edited hundreds of finance articles for Canstar and his work has been referenced far and wide by other publications and media outlets, including Yahoo Finance and 9News.
Sean has accumulated more than a decade of international experience in communications roles – in Australia, the UK and Ireland – across finance, banking, consumer and legal affairs, and more. His work as a journalist has featured in various publications and media outlets, including the Drogheda Independent, the Law Society of Scotland Journal and Ireland’s national broadcaster, Raidió Teilifís Éireann. Before joining Canstar, Sean oversaw content at Great Southern Bank (formerly CUA), one of Australia’s biggest member-owned financial institutions. He has a Bachelor’s Degree in Journalism (Dublin City University) and a Masters Degree in Creative Advertising (Edinburgh Napier University).
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