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Understanding Super Contribution Types
The essential foundation for building your super contribution strategy
Before you start salary sacrificing, using the bring-forward rule, or making a downsizer contribution, you need to know which “type” your money will be classified as inside super — because that classification controls caps, tax treatment, and eligibility.
This page explains the three contribution categories (concessional, non‑concessional, and cap‑exempt), what typically falls into each bucket, and how the rules interact in real planning scenarios.
The key limits for the 2026-27 financial year include a concessional contribution cap of $32,500 and a non‑concessional cap of $130,000.
The Big Picture: How Contributions Are Classified
Think of contributions like sorting money into three “buckets”. Every dollar that goes into your fund is classified into one of these categories — and the category controls taxation and caps.
Concessional Contributions (CC)
Before-tax contributions
Tax in super: 15%
Annual cap: $32,500
Common examples include employer SG, salary sacrifice and personal deductible contributions.
Go deeper on concessional contributions →Non‑Concessional Contributions (NCC)
After-tax contributions
Contributions tax: generally none (made from after‑tax money)
Annual cap: $130,000
(Up to $390,000 with bring-forward, subject to TSB)
These usually become part of your tax‑free component in super.
Go deeper on non‑concessional contributions →Cap‑Exempt Contributions
Special categories (don’t use CC/NCC caps)
These contributions have their own eligibility rules and limits.
Downsizer limit: $300,000 per person
Other examples include small business CGT contributions and personal injury contributions.
Go deeper on cap‑exempt contributions →Concessional Contributions (CC) — Before‑Tax Money
In a nutshell: Concessional contributions are made from before‑tax income. They can reduce your taxable income and are usually taxed at 15% inside super — often less than your marginal tax rate.
What counts as a concessional contribution?
- Employer Super Guarantee (SG) — the compulsory 12% your employer contributes on your behalf.
- Salary sacrifice — extra amounts redirected from your pre‑tax salary.
- Personal deductible contributions — contributions you make and claim as a tax deduction (requires lodging the relevant notice with your fund).
- Employer voluntary contributions — additional employer amounts above SG (less common).
The tax advantage
Concessional contributions are generally taxed at 15% in your super fund. If your marginal rate is above 15%, you often save the difference.
Worked example: salary sacrifice
- $10,000 paid to you as salary
- Tax at marginal rate + Medicare levy
- Less available to invest
- $10,000 contributed as CC
- 15% contributions tax (generally)
- More invested for retirement
The benefit depends on your marginal tax rate, Division 293 exposure, and your fund’s processing rules.
The cap
The concessional cap for 2026-27 is $32,500. This cap includes all concessional contributions combined (SG + salary sacrifice + deductible contributions).
Carry‑forward (catch‑up) contributions: If your Total Super Balance was below $500,000 at 30 June last year, you may be able to contribute more by using unused concessional caps from the past five years.
High earners (Division 293): If your income plus super contributions exceeds $250,000, an additional 15% tax can apply to some or all of your concessional contributions.
Non‑Concessional Contributions (NCC) — After‑Tax Money
In a nutshell: NCC are made from money you have already paid tax on. There is no deduction, but there is generally no contributions tax — and NCC form part of your tax‑free component inside super.
What counts as a non‑concessional contribution?
- Personal after‑tax contributions — money you transfer to super without claiming a deduction.
- Spouse contributions received — counts as NCC for the receiving spouse.
- Excess concessional contributions — if you exceed the CC cap and do not release the excess, it may be treated as NCC (subject to rules).
Why make NCC?
- Earnings in super are taxed at 15% in accumulation (and 0% in pension phase, subject to caps and rules).
- NCC increases your tax‑free component (helpful for future withdrawals and estate planning in many cases).
- You have already maximised CC and have additional funds to contribute.
- You may qualify for the government co‑contribution (up to $500), depending on income and eligibility.
Caps and Total Super Balance thresholds
Your NCC eligibility depends on your Total Super Balance (TSB) at 30 June of the prior financial year.
| Your TSB at 30 June (prior) | NCC available |
|---|---|
| Under $1.84 million | Up to $390,000 (3‑year bring‑forward) |
| $1.84 million – $1.97 million | Up to $260,000 (2‑year bring‑forward) |
| $1.97 million – $2.1 million | $130,000 (annual cap only) |
| $2.1 million or more | $0 — No NCC allowed |
Excess NCC: Exceeding your NCC cap can trigger forced release of the excess (plus associated earnings) or additional tax/charges, depending on circumstances and elections.
Cap‑Exempt Contributions — Special Categories
In a nutshell: Cap‑exempt contributions do not count towards your CC or NCC caps. They have their own eligibility rules and limits, and some remain available even when NCC is blocked by a high Total Super Balance.
Common cap‑exempt categories
Downsizer contributions
Up to $300,000 per person from the sale of your home if you meet the age and eligibility rules (including owning the home for 10+ years).
Key benefit: Often available even when other contribution paths are restricted.
Learn about downsizer contributions →Government co‑contribution
The government may contribute up to $500 when you make NCC and your income is below the threshold ($64,293).
Key benefit: Potentially a very high “return” on the first $1,000 contributed if eligible.
Learn about co‑contribution →Small business CGT contributions
Eligible small business capital gains can be contributed under special CGT concessions (subject to lifetime limits and documentation).
Key benefit: Can be available irrespective of Total Super Balance (subject to rules).
Detailed guide coming soonPersonal injury contributions
Some eligible personal injury settlements or court awards can be contributed under special rules, generally requiring strict documentation.
Key benefit: May not be subject to standard caps (subject to conditions).
Detailed guide coming soonImportant: Cap‑exempt contributions may not count towards CC/NCC caps, but they can still increase your Total Super Balance — which can affect future eligibility for bring‑forward, carry‑forward, co‑contribution and spouse offsets.
How the Different Types Work Together
Most people use a combination of contribution types as part of an overall strategy. Here is a practical example of how multiple levers can be coordinated.
Worked example: couple strategy (high level)
- Uses salary sacrifice to approach the CC cap
- Targets tax savings (subject to Division 293)
- Makes small NCC to potentially trigger co‑contribution (if eligible)
- Receives spouse contributions (if relevant)
The correct mix depends on taxable income, Total Super Balance, age, work status, and timing within the financial year.
What Does Not Count as a Contribution?
- Rollovers — moving money from one super fund to another.
- Contribution splitting — reallocating existing concessional contributions to a spouse (not new money).
- Investment earnings — growth inside the fund.
- Insurance proceeds — insurance benefits paid into super (subject to policy structure).
Which Contribution Type Should You Use?
The right approach depends on your circumstances. Use the prompts below as a decision guide.
Concessional (CC) is often relevant if:
- You are earning taxable income
- Your marginal tax rate is above 15%
- You have not reached the CC cap
- You want to reduce taxable income
Non‑concessional (NCC) is often relevant if:
- You have after‑tax savings to invest
- You have already maximised CC
- You want to build tax‑free component
- Your TSB is below $2.1 million
Cap‑exempt is often relevant if:
- You are selling your home (downsizer)
- You may be eligible for co‑contribution
- You are selling a qualifying small business asset
- Other contribution paths are blocked
Not sure which strategy suits you? Try our Super Contribution Strategy Tool →
Where to Next?
Now that you understand the types, here are practical next steps.
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