Concessional vs Non-Concessional Contribution Estimator

Superannuation contribution caps are limits on the amount of money you can add to your super account each financial year. Concessional (before-tax) and non-concessional (after-tax) contributions have separate caps. This estimator helps you track your contributions against these caps to maximize your retirement savings and avoid extra tax.

The calculator adds up your employer and personal concessional contributions to check them against the annual concessional cap ($27,500). It then assesses your non-concessional contributions against the annual non-concessional cap ($110,000). It also checks your eligibility based on your Total Super Balance, as this can affect your ability to make certain types of contributions.

• Your 'Total Super Balance' (TSB) is a critical figure. If it's over a certain threshold (currently $1.7 million), you can no longer make non-concessional contributions. Your TSB is assessed at the start of the financial year (July 1st).
• The 'carry-forward' rule is a powerful tool. If your TSB is below $500,000, you can use any unused concessional cap amounts from the previous five financial years. This is great for those with interrupted work patterns or who want to make a large contribution.
• The tax benefits of concessional contributions are significant. They are taxed at only 15% inside the super fund, which is usually much lower than your marginal tax rate, making it a highly effective way to save for retirement.

• Log into your myGov account linked to the ATO to see your exact unused carry-forward concessional contribution amounts.
• If you plan to make a large personal contribution, consider timing it just before the end of the financial year (June 30th) to claim the tax deduction in that year.
• Look into 'spouse contributions'. If your spouse is a low-income earner, you can make a non-concessional contribution to their super and potentially receive a tax offset for yourself.