The Other Contribution Caps

The non-concessional contribution cap (currently 2009/10) of $150,000 applies to ordinary non-concessional contributions.

There are special types of non-concessional contributions to which the $150,000 does not apply.

Non-concessional contributions which sourced from the disposals of business assets to which the small business capital gains concessions under the 15 Year Concession or the Retirement Concession apply are subject to a special lifetime limit currently of $1,100,000 for 2009/10.  These contributions are commonly called CGT contributions.

At or before the time a CGT contribution is made the contribution must be identified as a CGT contribution to the super fund by completing and submitting to the super fund a particular tax office form. 

If the completed form is not submitted to the super fund at or before the particular contribution is made, the contribution will be treated as an ordinary non-concessional contribution and the $150,000 cap will apply to the contribution.  A super investor is not required to treat contributions sourced form the disposal of qualifying business assets as CGT contributions – in fact there could be good reason not to do so.

The other type of special non-concessional contribution is a contribution which arises from certain types of personal injury compensation payments.  These contributions are not subject to any dollar cap.