This is any personal voluntary contribution paid into a fund which is not eligible for a tax deduction, and includes spouse contributions, government co-contributions, and any personal contributions.
As a result of there being no entitlement to claim a tax deduction for non-concessional contributions, no contributions tax is payable on these contributions when paid to a super fund. For example, if the contribution was $1,000, the super contributions tax would be $0 so the net after tax contribution is still $1,000.
The total amount of non-concessional contribution able to be made without any penalty is limited to the cap amount of $100,000 per annum although it is possible to ‘bring-forward’ up to two further years of non-concessional contributions to a maximum of $300,000 in a single year.
We will explain further the eligibility to make such contributions later in the module.