What are concessional (before-tax) super contributions?
Concessional contributions are before-tax money going into super — employer super guarantee, salary sacrifice, and personal contributions you claim a tax deduction for. They’re taxed at 15% inside the fund rather than at your marginal rate, which is what makes them tax-effective. For 2025–26 the concessional contributions cap is $30,000 a year (ATO).
By Justin Porrins, CFP® · SMSF Specialist Adviser™ · Last reviewed 25 June 2026
The cap — and the carry-forward rule
If your total super balance is under $500,000, you can carry forward concessional cap you didn’t use in the previous five years and contribute more in a later year. That’s a powerful lever in a high-income year, after a windfall, or when a business sale lands.
Concessional vs non-concessional
Non-concessional contributions are after-tax money, with a separate cap of $120,000 a year for 2025–26 (ATO) and a bring-forward rule that lets eligible people under 75 contribute up to $360,000 across three years. The two caps work independently.
Watch Division 293
If your combined income and contributions exceed $250,000, an extra 15% (Division 293 tax) applies to your concessional contributions — still concessional, just less so.
Common questions
What is the carry-forward concessional contribution rule?
If your total super balance was under $500,000 at the end of the previous financial year, you can use concessional cap amounts you didn’t use in the prior five years, on a rolling basis. It lets you make a larger deductible contribution in a single year.
What is the difference between concessional and non-concessional contributions?
Concessional contributions are before-tax (and taxed at 15% in the fund); non-concessional contributions are after-tax money you’ve already paid tax on. They have separate annual caps.
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