Non-Concessional Contributions
After-tax super contributions that are not taxed inside the fund, with an annual cap of $120,000.
Non-concessional contributions (NCCs) are super contributions made from after-tax income. Since the money has already been taxed, NCCs are not taxed again inside the super fund. They form part of the "tax-free component" of your super balance, meaning they are tax-free when withdrawn in retirement (after age 60). NCCs are an effective way to boost your super balance beyond the concessional cap.
For 2025–26, the annual NCC cap is $120,000. If you are under 75, you can use the "bring-forward" rule to contribute up to $360,000 in a single year (3 years' worth of caps), after which you cannot make further NCCs for the next 2 years. However, you cannot make NCCs at all if your total super balance is $1.9 million or more at the end of the previous 30 June. The bring-forward cap is also reduced if your balance is between $1.66 million and $1.9 million.
Contributing excess NCCs can result in harsh tax consequences — the excess amount is taxed at 47% (the top marginal rate plus Medicare levy). You can elect to release excess NCCs from your fund to avoid this penalty, though you'll still pay tax on the associated earnings at your marginal rate. Always check your contribution levels and super balance before making large NCCs.