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# Superannuation contributions

## Concessional Contributions

- contributions made to a superannuation fund before tax is paid on that money
- usually made through employer contributions or salary sacrifice arrangements
- taxed at the concessional rate of 15% when they enter the superannuation fund
- From 1 July 2024, the concessional contributions cap is $30,000 per year
- [ATO official document](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap)

- Carry forward concessional contributions
- make additional contributions to your Super over and above the annual Concessional cap by utilizing any unused portions of the concessional cap from previous years
- also called catch up concessional contributions
- Starting from 2019-2020 FY, individuals can carry forward any unused concessional contributions cap amounts for up to 5(five) years
- Eligibility: your Super balance must be <$500,000 at 30 June of the previous financial year

## Non-concessional Contributions

- contributions to superannuation fund from after-tax income
- NOT taxed when they enter the superannuation fund as tax has already been paid
- for the 2024-2025 financial year, annual cap for non-concessional contributions is $120,000
- [ATO official document](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/non-concessional-contributions-cap)


## transfer balance cap
- limit the amount of superannuation savings that can be transferred into a tax-free **retirement phase account**
- Retirement phase account
- earnings on an account in retirement phase are tax free
- FY2024–25, the transfer balance cap is $1.9M. This means that an individual can transfer up to $1.9 million from their superannuation accumulation account into a retirement phase income stream without incurring any additional tax on the investment earnings of that income stream
- [ATO official doc Transfer balance cap](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/transfer-balance-cap)