The non-concessional contributions cap generally includes any personal after-tax contributions for which a tax deduction has not been claimed. The Government’s contribution under the co-contribution scheme is not included in the cap.
Under age 75, a maximum limit of $110,000 per year (4 times the concessional contributions cap) or $330,000 over a 3-year period (known as the ‘3-year bring forward rule’) applies. No non-concessional contributions are permitted if your Total Super Balance at the start of the year is over $1,900,000 from 1 July 2023 (and the 3-year bring forward rule phases out once a super balance reaches $1,680,000). Over the age of 75, no further non-concessional contributions can be made into super.
Any contributions in excess of the cap can be elected to be withdrawn from super along with associated earnings. If withdrawn, the contribution amount is tax-free but the associated earnings are added to taxable income with tax payable at marginal tax rates including levies plus penalties.
If the election to withdraw is not made, the excess contributions are taxed at 45% plus 2% for Medicare Levy (for 2023/24).