Excess concessional contribution charge

If your superfund has received contributions totalling over the cap then you will be charged an extra tax called “Excess concessional contribution charge”.

If you have multiple employers or multiple superfund accounts then this is calculated on the total super received into all your superfund accounts by all sources.

There are 2 types of super contributions – Concessional and Non Concessional – and each type has its own cap.

Concessional (Cap is $25,000 per year from 2019)
This is super that is claimed as a deduction by the payer (for example your employer contributing super into your account as well as you making personal superannuation contributions and then claiming them as a deduction in your tax return).

Non Concessional (Cap is $100,000 per year for most funds from 2019 but you can claim the current year and bring forward the next 2 years in some circumstances – please contact your superfund to determine your cap)
This is any other super contribution.

This extra tax has nothing to do with the tax return you prepare and is not information that is relevant to tax return preparation or visible to a tax agent through your Tax Office reports. Rather it is communicated to the ATO by your superfund and the tax liability is then calculated by the ATO after a tax return is submitted. If this has happened to you the Tax Office will send you a letter detailing what has happened. The end result is that the excess super contributed causes a tax liability.

However, you have an opportunity to elect to have this excess paid out of your super fund balance (which will be included in the letter sent by the ATO.