What are Non-Concessional (After Tax) Superannuation Contributions?
Non-Concessional Super Contributions are payments that are deducted from the employees’ net salary or wages and paid directly to their Superannuation Fund. As these payments are deducted after tax is calculated, the Superannuation Fund will not deduct any tax once they receive the contributions.
Types of Non-Concessional Super Contributions (After Tax) include:
- non-concessional (after-tax) contributions that the employee makes, or you make on their behalf, from their after-tax income
- contributions their spouse (including a same-sex spouse) make to their super fund (unless their spouse makes the contributions because they’re the employer)
- personal contributions that are not claimed as an income tax deduction
- excess concessional (before-tax) contributions that they have not elected to release from their super fund
- contributions in excess of their capital gains tax (CGT) cap amount
- retirement benefits they withdraw from their super fund and ‘re-contribute’ to super
- most transfers from foreign super funds, including New Zealand KiwiSaver contributions, but excluding amounts included in their fund’s assessable income.
The Employees age affects the amount of the non-concessional (after-tax) contributions cap, how the cap applies, and what options they may have.
How do I set up a Non-Concessional (After Tax) Superannuation Contribution Deduction?
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