Contribution rules are the area where SMSF trustees most commonly make costly mistakes — and the ATO doesn’t miss them. Contribution data is cross-checked automatically against tax returns, super fund reports, and employer records. Breach a cap, and an excess contributions determination lands in your inbox with a tax bill attached.
This post covers every contribution type, the 2025 caps and limits, and the specific rules that apply based on your age and super balance — so you can contribute correctly and avoid penalties.
The Two Types of SMSF Contributions
Every contribution made to an SMSF falls into one of two categories: concessional or non-concessional. The distinction determines how the contribution is taxed, which cap applies, and what rules govern eligibility. Getting this classification right is the foundation of contribution compliance.
Concessional Contributions — Rules and Caps
Concessional contributions are made from pre-tax income and taxed at 15% inside the fund — significantly lower than most members’ personal marginal tax rates. They include:
- Employer superannuation guarantee (SG) contributions
- Salary sacrifice contributions — additional pre-tax amounts directed to super by arrangement with your employer
- Personal deductible contributions — personal contributions for which you lodge a Notice of Intent to Claim a Deduction with your fund
The 2025 concessional contributions cap is $30,000 per person per financial year. This includes all concessional contributions from all sources — employer SG, salary sacrifice, and personal deductible contributions combined.
Division 293 tax applies to high-income earners whose income plus concessional contributions exceed $250,000 in a financial year. An additional 15% tax is applied to the concessional contributions that push income above the threshold — effectively bringing the tax rate on those contributions to 30% rather than 15%.
Carry-forward unused concessional contributions allows members to contribute more than the annual cap by using unused cap amounts from the previous five financial years. To be eligible, your total superannuation balance must be below $500,000 on 30 June of the prior year. Unused cap amounts are tracked by the ATO and visible through myGov.
Non-Concessional Contributions — Rules and Caps
Non-concessional contributions are made from after-tax income — money that has already been taxed personally. Because tax has already been paid, these contributions are not taxed again inside the fund.
They include personal contributions for which no tax deduction is claimed, and contributions made on behalf of a spouse.
The 2025 non-concessional contributions cap is $110,000 per person per financial year.
Your total superannuation balance (TSB) on 30 June of the prior financial year determines your eligibility:
| Total Super Balance | Non-Concessional Cap |
|---|---|
| Less than $1.68 million | $110,000 (or up to $330,000 using bring-forward) |
| $1.68 million – $1.79 million | $110,000 (or up to $220,000 using bring-forward) |
| $1.79 million – $1.9 million | $110,000 (no bring-forward available) |
| $1.9 million or more | Nil — no non-concessional contributions permitted |
The Bring-Forward Rule — Contributing More Than the Annual Cap
The bring-forward rule allows eligible members to contribute up to three years’ worth of non-concessional contributions in a single financial year — without breaching the cap. This is commonly used when a large sum of money becomes available, such as from a property sale or inheritance.
Maximum bring-forward amount: $330,000 (three times the $110,000 annual cap).
The bring-forward period is automatically triggered when you contribute more than $110,000 in non-concessional contributions in a single financial year. Once triggered, the bring-forward cap applies across a three-year period — any further non-concessional contributions during that window count against the remaining bring-forward balance.
Eligibility requirements:
- Must be under age 75 at any time during the financial year in which the bring-forward is triggered
- Total super balance must be below $1.9 million on 30 June of the prior year (amounts above $1.68 million reduce the available bring-forward — see table above)
The bring-forward rule is powerful but easy to miscalculate, particularly when it interacts with an existing bring-forward period from a prior year or a balance approaching the TSB thresholds. Your accountant should confirm your available bring-forward amount before a large contribution is made.
The Work Test — Who Needs to Satisfy It
Members aged 67 to 74 must satisfy the work test before making personal contributions (both concessional and non-concessional) to their SMSF.
To satisfy the work test, you must be gainfully employed for at least 40 hours in any 30 consecutive day period during the financial year in which you intend to make the contribution. Part-time, casual, and self-employed work all count — the requirement is hours worked, not employment type.
Work test exemption: In the first financial year after you retire, you may be eligible for a one-year exemption from the work test if your total super balance was below $300,000 on 30 June of the prior year. This allows a final year of personal contributions without meeting the employment requirement.
Members aged 75 and over cannot make personal contributions at all — the deadline for personal contributions is the 28th day of the month following your 75th birthday.
Can I Contribute to an SMSF After 75?
Personal contributions — including salary sacrifice and personal deductible contributions — must be made before the 28th day of the month after you turn 75. After that deadline, personal contributions are no longer permitted.
However, two types of contributions remain available after age 75:
- Employer superannuation guarantee contributions — your employer is still legally required to make SG contributions on your behalf regardless of age, as long as you remain employed
- Downsizer contributions — available from age 55, with no upper age limit
Downsizer Contributions — What They Are and How They Work
A downsizer contribution allows eligible members to contribute up to $300,000 per person (or $600,000 per couple) into super from the proceeds of selling their primary residence — without it counting toward the non-concessional contributions cap.
Eligibility requirements:
- Age 55 or older at the time of contribution (reduced from 60 in January 2023)
- The property must have been owned by you or your spouse for at least 10 years
- The property must have been your principal place of residence at some point during ownership
- The contribution must be made within 90 days of settlement
- Can only be used once — not available for a second property sale
Downsizer contributions do not count toward the non-concessional cap and are not affected by your total super balance — meaning members with balances above $1.9 million who cannot make any other non-concessional contributions can still make a downsizer contribution.
This makes downsizer contributions one of the most significant late-career super top-up opportunities available to Australians, particularly for those who have paid off their home and are approaching retirement.
Spouse Contributions — Contributing to Your Partner’s SMSF
A spouse contribution is a non-concessional contribution made by one partner into the other’s super account — using after-tax money. It counts toward the receiving spouse’s non-concessional cap, not the contributing spouse’s.
Spouse contribution tax offset: If you contribute up to $3,000 into your spouse’s super and your spouse’s income is below $37,000, you may be eligible for a tax offset of up to $540. The offset phases out as the spouse’s income rises above $37,000 and disappears entirely at $40,000.
Eligibility: The receiving spouse must be under 75. The work test applies if the receiving spouse is aged 67–74.
Spouse contributions are a straightforward strategy for couples where one partner has a significantly lower super balance — commonly due to career breaks for caring responsibilities — and are worth considering as part of broader retirement planning.
Excess Contributions Tax — What Happens When You Breach the Caps
Breaching a contribution cap triggers automatic ATO action. How the excess is taxed depends on which cap was breached:
Excess concessional contributions: The excess amount is included in your personal assessable income for the year and taxed at your marginal rate. A 15% tax offset is applied to account for the contributions tax already paid inside the fund. The ATO issues an excess concessional contributions determination — you can elect to release up to 85% of the excess from your super fund to help pay the tax bill.
Excess non-concessional contributions: Taxed at 47% — the top marginal rate plus Medicare levy. Alternatively, you can elect to withdraw the excess amount (plus associated earnings) from the fund. The associated earnings are taxed at your marginal rate. Most members elect to withdraw rather than pay the 47% tax rate.
In both cases, the ATO issues a formal determination with a response timeframe. Missing that timeframe removes your ability to elect how the excess is treated. Your accountant will manage this process — but the best outcome is always avoiding the breach in the first place through accurate contribution tracking throughout the year.
Frequently Asked Questions
What is the concessional contribution cap for 2025?
The concessional contributions cap for the 2024–25 financial year is $30,000 per person. This includes employer SG contributions, salary sacrifice, and personal deductible contributions combined across all super funds.
Can I contribute to my SMSF if I’m over 75?
Personal contributions must be made before the 28th day of the month after you turn 75. After that, only employer SG contributions and downsizer contributions are permitted. There is no age limit on downsizer contributions.
What is the bring-forward rule for SMSF contributions?
The bring-forward rule allows eligible members to contribute up to three years’ worth of non-concessional contributions — up to $330,000 — in a single financial year. It is triggered automatically when you contribute more than $110,000 in non-concessional contributions in one year. Eligibility depends on your age and total super balance.
What happens if I exceed my contribution cap?
Excess concessional contributions are included in your assessable income and taxed at your marginal rate. Excess non-concessional contributions are taxed at 47%, or you can elect to withdraw the excess from the fund. The ATO issues a formal determination in both cases — your accountant manages the response process.
Do I need to meet the work test to contribute to my SMSF?
If you are aged 67–74, yes — you must be gainfully employed for at least 40 hours in any 30 consecutive day period during the financial year. Members under 67 do not need to satisfy the work test. Members 75 and over cannot make personal contributions regardless of employment status.
Getting Contributions Right Starts With Accurate Accounting
Contribution errors are the most common — and most preventable — SMSF compliance issue. They happen when trustees lose track of total contributions across the year, miscalculate bring-forward availability, or miss a work test requirement. The ATO’s data-matching catches most of them, and the tax consequences of getting it wrong are real.
At KSH TAX, we track contribution activity as part of our annual SMSF accounting and tax return service — ensuring every contribution is correctly classified, reported, and within the applicable caps before the return is lodged. If you want a specialist SMSF accountant handling your fund’s compliance, start with a conversation.
[Book your free SMSF consultation with KSH TAX → Contact Us]
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