After-tax contributions, also called non-concessional contributions*, is money that you add into your super from your after-tax income. You can contribute up to a limit of $100,000 pa. However, if your total super balance is over $1.6 million on 30 June of the year before the relevant financial year, you won’t be able to make any non-concessional contributions*.
If you’re under age 65 and your total super balance at the end of the previous financial year (i.e. 30 June) was less than $1.4 million, you can bring forward up to two years' worth of non-concessional contribution cap into the current financial year. For more information on the bring-forward rule, see our Super facts & figures.
Exceeding the caps
Contributions that exceed these limits attract an excess after-tax contributions tax, which is equivalent to the current top marginal rate plus Medicare Levy if you leave these excess amounts in super. You have the option to withdraw the excess amount to avoid paying this tax.
Claiming a tax deduction on after-tax contributions
From 1 July 2017, if you make an after-tax contribution into super, you may be eligible to claim a tax deduction on that contribution in your next tax return. To claim a deduction on your after-tax contribution, you’ll need to submit a ‘Notice of intent to claim or vary a deduction for personal super contributions’ to Rest before the end of the financial year.
For more information on claiming a tax deduction on personal contributions, see the Australian Tax Office website.