Answer
Concessional super contributions are payments made to your superannuation fund before tax is taken out. They are generally taxed at 15% inside the fund, which is usually lower than most people's marginal income-tax rate.
They include:
- Employer contributions such as the Super Guarantee (SG) and any additional pre-tax amounts your employer agrees to pay on your behalf.
- Salary-sacrifice contributions, where you redirect part of your gross wages into super.
- Personal contributions that you claim as an income-tax deduction.
- Certain amounts transferred from foreign super funds or paid by third parties on your behalf (e.g. some insurance or compensation payments).
Lightning Payroll handles the following types of contributions:
- SGC (Super Guarantee) contributions
- Salary sacrifice RESC (Reportable Employer Super Contributions)
- Post-tax member contributions (non-concessional)
- Miscellaneous RESC — bonus or additional employer contributions above the SG, not part of a salary sacrifice agreement
Note: Personal deductible contributions and foreign fund transfers must be managed outside of Lightning Payroll, as these are handled by the employee directly through their super fund or tax return.
Contribution cap: For the 2024–25 and 2025–26 financial years, the concessional contributions cap was $30,000 per person, per year. From 1 July 2026 it is $32,500 per person, per year. This applies to the total of all concessional contributions made to any of your super funds. If your total super balance was under $500,000 on 30 June of the previous year, you may be eligible to carry forward unused cap amounts from the past five years.
High-income Division 293 tax: If your combined taxable income and concessional contributions exceed $250,000 in a financial year, an additional 15% tax may apply to some or all of your concessional contributions.
What about post-tax (non-concessional) contributions? Voluntary member contributions made from your take-home pay are non-concessional and do not receive the 15% concessional tax rate. For a full comparison, see our FAQ on salary sacrifice versus voluntary post-tax contributions and the ATO's guide to understanding concessional and non-concessional contributions.
For more information, including current thresholds, visit the ATO's super contributions caps page.
