What Are Non-Concessional Contributions & Are They Worth It?

Learn why non-concessional contributions are worth it and essential for any retirement plan and how they can provide you with more income in retirement.

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⏱ Timestamps
00:00 - What are non-concessional contributions?
00:47 - Concessional vs non-concessional contributions
02:17 - Benefits of non-concessional contributions
03:44 - Other benefits of non-concessional contributions

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– What Are Non-Concessional Contributions & Are They Worth It? --

Knowing which type of contribution to make to super (and how much) can be daunting.

A non-concessional contribution is a contribution made to superannuation with after-tax dollars, usually from your personal bank account.

By making a non-concessional contribution, you are placing more of your wealth in the tax-effective superannuation environment, where investment earnings are taxed at a concessional rate and received completely tax-free once you retire.

There are a number of reasons why non-concessional contributions are worth it.

This video compares concessional and non-concessional contributions, explains the main benefits of non-concessional contributions, as well as some other benefits that many people don’t always consider.

#SuperGuy #ChrisStrano #Superannuation #RetirementPlanning

DISCLAIMER: The SuperGuy website and SuperGuy YouTube channel contains general advice only. It is not personal advice as it does not take your specific needs or circumstances into consideration. Therefore, you should look at your own financial position, objectives and requirements and seek personal financial advice before making any financial decisions.

General advice is provided by Toro Wealth Pty Ltd trading as SuperGuy Retirement Experts as an Authorised Representative of Core Value FA Pty Ltd (AFSL 480387).

Before acting on any information, you should seek professional advice and verify our interpretation/s before relying on the content or calculators within this website or on the videos, while also considering its appropriateness in relation to your personal situation.

[peterschurr]

There was a time only a few years ago when Super performance was better than paying down a home mortgage. Even now, at 6.5% for mortgages, it’s still line ball whether non-concessional actually bring you out ahead at some point in the future.

[Andrew-cpmc]

Thanks Chris - helpful and easier to digest than reading off your website!

[JustJamesDean]

great video.

I also recently found out, there is a brought forward provision, up to 330k NCC. Its awesome

[garyhaigh]

Thank Chris. Great video. Can non-concessional contributions be back-dated in a similar fashion to concessional contributions (given the 5 year time frame and maximum limits to concessional contributions)?

[CallsignEskimo-lo]

The Re-contribution Strategy is particularly effective as a estate planning tool. By increasing the proportion of the tax free component of your superannuation, you can increase the sum paid to your beneficiaries, particularly if they are adult children. Though, this can mean transferring you entire superannuation into a new fund via Non-Concessional Contributions to avoid any amount of the funds being treated as Tax Payable.

[laurellemorris]

Thanks so much for your videos - have been really helpful!

[mkefiro]

Would you recommend parking non confessional contributions in a separate super fund, as some do? Also, I hope you can make a video comparison of funds offering ETFs .

[josephj]

Fantastic video. Here I was thinking I’ll get a tax deduction. My super fund couldn’t answer that simple question.

[josephyeo]

A question I hope someone can answer here. I am over 65 and still working. I made a concessional contribution up to the cap allowed, and then put in a claim for tax deduction. What happens if I then withdraw the said amount, or roll it over into my pension account, within the same financial year?

[CharlesEshun-hvsj]

Hi Chris, this is a case scenario to have better understanding of contribution to superannuation. If one who is unemployed on Centrelink benefits is blessed with lottery winnings of millions of dollars who contribute to his superannuation as non concessional. Can he contribute millions of dollars to his superannuation? Will he be taxed for making the contribution to his superannuation as non concessional? What are the benefits for contributing his own money to his own money? Your advice much appreciated. Thanks

[tonymellow]

1 am 62 and have been unemployed for the last year. I have been receiving job seekers payments from the government. I am thinking of making payments from the payments to my superannuation so I can keep building ìt up till I retire. Isit o.

[fcuksigningup]

G’day Chris, great videos! I was wondering if you have one (or will do one) specifically on bring forward arrangements? Cheers, Charli

[martinp]

Great vid and insight. I’m 48 and seriously considering squirrelling away all spare cash for tax advantages as on high marginal and with stock investing outside of super will have large CGT if it goes well! I have an emergency fund so feel like it’s best use of money for my time of life and so I don’t have to scrimp in retirement. And if I go, wife and kids are cared for financially. Does this all sound rational (not asking for advice ;))

[thevalayshah]

Can someone help me to understand.. you get charged 15% contribution tax when your employer make contribution and how much do they take out as tax when you reach retirement and pull out money

[aussietaipan]

573 liked. I have been self contributing (NCC) into my super for decades. I'm aiming for my super balance to reach 7 figures 1st half this year. Planning to retire in 4-5 years.

[christophers]

Chris, does my super statement show how much of my deposits were concessional vs non concessional?
thanks, Chris

[pines]

Hi Chris. Thanks for your excellent videos. I've got a lot of catch-up concessionals to tip in this year. I'm fairly sure of the figure but dont want to go short - or add too much. There is talk about the ability to withdraw amounts free of penalty if over contribution occurs, but I've never seen anything about how this could occur (if indeed it is accurate).. Are you able to fill this in please? Many thanks

[yogesh]

Hey, I am curious to know how does this can work for an immigrant. I am 27 and hence I am have not really given much thought to where I would like to retire. I am Australian PR holder, and if everything goes according to the plan, I might want to retire in Monaco or Mexico or India. Jokes aside, do I still receive the tax free pension option if I wait until 60 regardless of the country I live in at that time? I am comfortable locking in portion of my income into super early on. Would you recommend locking the money here or I am better of with investing in mutual funds and having that flexibility of liquidity.

[khuti]

Thx Chris. I started a TTR end of April (Like right now). So i wanted a $1000/ftn. But super is going to pay me $5100 ftn I assume because $1000ftn over the entire previous 12mths !! And there is only 5 ftn left in this year.
So Im going to non concessional it back in till end of this financial year.

[trace.l]

Thanks for sharing! May I ask if I have carry-forward concessional contribution for $100K for example, can I use all in one financial year for tax deduction purpose (my super bal. is less than $500K)? Would this extra $100K concessional contribution subject to any tax rate once this is paid to my super account?