Non-concessional contributions above the cap


Non-concessional contributions above the cap

You should monitor all contributions (made by you and on your behalf ) into your account to ensure they don’t exceed the caps. If you exceed the cap and you leave the excess in the fund, any non-concessional contributions above the cap will be taxed at the top marginal rate of 47% including the Medicare levy.

If you have exceeded the cap the ATO will send you an excess contributions tax Notice of Assessment for the relevant year, which will include the amount that you have to pay. At the same time, the ATO will send you a Compulsory Release Authority for the amount of the excess non-concessional contributions tax liability, which you must use to authorise the release of the tax amount from your super fund.

You can pay your excess non-concessional contributions tax in a number of ways.You can:

  •  pay the tax yourself and use the Compulsory Release Authority to ask your super fund to release the money to you, or
  •  use the Compulsory Release Authority to instruct your fund to pay the money to the ATO on your behalf, or
  • pay using a combination of these options.

However, you must withdraw the full amount of your excess non-concessional contributions tax from your super, whether you use it to help you pay the tax or not.