After Tax Contributions – Non-Concessional

Investing into super from your after tax salary, or from savings, is known as ‘non-concessional’ contributions, as unlike concessional contributions you don’t pay any contributions tax going into the fund.

If you have a fairly low level of taxable income non-concessional contributions can be more tax efficient for you than concessional.

Non-concessional contributions also allow you to get larger amounts into your super with the current contribution limit being $180,000 a year (or $540,000 within a 3 year period).

Once inside super the maximum tax you pay on income and capital gains is 15%, and in retirement you generally pay no tax and also receive income and other withdrawals from your super completely free of tax.

Generally, the more you have in super in retirement the better (as opposed to having other income, such as a rental property, which will always be assessable for income and capital gains tax).