Non-concessional contributions are contributions made to superannuation after tax.

Since non-concessional contributions are made after income tax has been withheld or paid by the employer, typically, there is no tax paid when the money goes into the super fund.

However, non-concessional contributions cannot be withdrawn until a superannuation condition of release is met (e.g. retirement or death).

For example, Jill receives a wage of $1,500 per week, with PAYG tax withheld by her employer. She voluntarily makes a $200 contribution from this money into her super fund. Although the $200 will not incur additional tax going into the fund, Jill will not be able to access the money she contributes until she meets a superannuation condition of release.

There are yearly caps on how much money can be contributed to superannuation after tax. While most people can, not everyone can make these contributions (e.g. over those over 75), so it’s best to speak to a qualified professional.

In addition to these types of contributions, self-employed individuals and employers (on behalf of their employees) can make before tax contributions to superannuation funds, called concessional contributions.

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