Super – what happens if I put too much in?

There are caps that restrict how much you can contribute to your superfund each year, but what happens if you put too much money in?

Excess concessional contributions

If you exceed the concessional super cap (currently $30,000), the excess contributions (the amount contributed above the cap) will be included in your assessable income and you will pay tax on them at your marginal tax rate less a 15% offset to account for tax already paid by your superfund.  The ATO will allow you to withdraw up to 85% of the excess contributions from your superfund to help pay the additional tax liability.  Any excess concessional contributions not withdrawn from your superfund will then count towards your non-concessional cap.

When preparing your return, HQB will let you know if you have exceeded the concessional super cap and to expect another notice from the ATO regarding any additional tax due.

Excess non concessional contributions

There are two options available if you exceed the non-concessional super cap (currently $120,000):

• Option 1 – release all excess non-concessional contributions plus 85% of the associated earnings from your superfund – if you choose this option, you will pay tax on the associated earnings at your marginal tax rate
• Option 2 – you can leave the excess non-concessional contributions in your fund, but you will receive an Excess Non-Concessional Contribution tax assessment for the excess, which will be taxed at the highest marginal tax rate + Medicare levy (currently 47%).  You can ask your superfund to pay this amount.

Please note that the super caps listed above may vary from person to person, and it’s a good idea to check your individual cap.

– Renee Crane

Posted 3.11.2025

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.