Concessional contributions are those superannuation contributions that are made for you by the Qantas Group1 from before-tax salary.
They include employer contributions, including Superannuation Guarantee contributions; salary sacrifice contributions; and, for some divisions, an amount called Notional Taxed Contributions.
The concessional contributions cap
Concessional contributions made to your super up to the ‘concessional contributions cap’ are generally taxed at 15%2. If your concessional contributions exceed the cap, you may pay extra tax.
The 2021/22 concessional contributions cap is $27,500, indexed in line with AWOTE in increments of $2,500 (rounded down).
Note: If you have a total superannuation balance for tax purposes of less than $500,000 on 30 June of the previous financial year, you may be entitled to make additional contributions for any unused amounts. Unused amounts are available for five years, and after this period will expire.
1Qantas Airways Limited and associated employers.
2An additional 15% tax will apply to individuals with combined earnings and concessional contributions exceeding $250,000 in the 2021/22 income year.
Contributions which are included
There are three types of employer contributions that count towards your concessional contributions cap. These are:
- Your ‘Notional Taxed Contributions’ which represent the contributions made by the Qantas Group in respect of your defined benefits;
- Any voluntary Salary Sacrifice contributions; and
- Any other concessional contributions.
The contributions and benefits vary between divisions of Qantas Super. If you change employment classification or move between divisions, different contributions may be counted against your concessional contributions cap.
Notional Taxed Contributions (NTC)
The NTC represents the ’contribution’ that is deemed to have been made by the Qantas Group to provide defined benefits or other benefits to employees. The NTC is a government prescribed formula as calculated by the Actuary of Qantas Super.
In any financial year, your NTC is determined as follows:
NTC = 1.2 x NCR x Superannuation Salary
- Superannuation Salary is the equivalent full-time annual salary amount determined under Qantas Super’s Trust Deed and Rules, which applied at the start of the financial year (ie 1 July); and
- NCR is the Notional Contribution Rate for the relevant benefit class. For Division 15, your NCR depends on your Superannuation Salary.
For the 2021/22 financial year, the NCR is:
For permanent employees
|Your Superannuation Salary||NCR|
|Less than $21,150||17%|
|$21,150 - $23,009||16%|
|$23,010 - $25,229||15%|
|$25,230 - $27,899||14%|
|$27,900 - $31,229||13%|
|$31,230 - $35,459||12%|
|$35,460 - $40,999||11%|
|$41,000 - $48,609||10%|
|$48,610 or more||9%|
For non-permanent employees
|Your Superannuation Salary||NCR|
|Less than $24,900||15%|
|$24,900 - $26,679||14%|
|$26,680 - $28,719||13%|
|$28,720 - $31,119||12%|
|$31,120 - $33,949||11%|
|$33,950 - $37,339||10%|
|$37,340 - $41,499||9%|
|$41,500 - $46,679||8%|
|$46,680 - $53,349||7%|
|$53,350 or more||6%|
Adjustments to the NTC calculation are made in certain circumstances. For example, the calculation is pro-rated ifyou work part-time, cease employment or transfer between divisions of Qantas Super during the year.
It is important to note that these calculations are based on the Actuary’s current calculations and are recalculated each year for Division 15.
Grandfathering of NTCs
For members of defined benefit divisions, grandfathering provisions apply. Provided you meet eligibility criteria set by the Government, this means your NTCs will be capped at the concessional contributions cap applicable to your age (even if the NTC formula produces a higher amount) and you will not have to pay extra tax on these contributions.
For example, if your NTCs are equal to $35,000 and your limit is only $27,500, the NTCs will be set to $27,500 (and no additional tax will be payable on the extra $7,500). However, in this example, if you have made other concessional contributions into Qantas Super (e.g. voluntary Salary Sacrifice contributions), you would exceed your limit and subsequently pay tax on those contributions.
Calculating your total concessional contributions
Your annual concessional contributions can be estimated each year. However, it is not possible to calculate your actual annual concessional contributions until the end of the financial year (when all your contributions have been received by Qantas Super).
A Division 15 member is a permanent employee with a Superannuation Salary of $45,000, and is expected to have the following contributions made during the year:
- $5,000 voluntary Salary Sacrifice contributions
- Nil other concessional contributions.
For this member, the concessional contributions for the year will be approximately:
|Notional Taxed Contributions: 1.2 x 10% x $45,000||$5,400|
|plus voluntary Salary Sacrifice contributions||$5,000|
|plus other concessional contributions||Nil|
|Total expected concessional contributions||$10,400|
Tax on contributions above your cap
If your total annual concessional contributions exceed your cap, the Australian Taxation Office (ATO) will include the amount above your cap in your assessable income and apply tax at your marginal tax rate (subject to a 15% tax offset to account for the contributions tax payable on the contributions within the super fund). Interest will also be charged to you by the ATO for any excess concessional contributions that increase your tax liability for the relevant financial year to account for the deferred payment of tax on these monies.
In certain circumstances, you may also have the option to withdraw any excess concessional contributions (less any contributions tax) from your account. Subject to legislative requirements and upon request, Qantas Super will transfer the excess concessional contributions (less any contributions tax) to the ATO to include the gross amount of the excess concessional contributions in your assessable income. The net amount (if any) will then be refunded to you through the issue of an amended income tax assessment.
Note: Unless withdrawn in this way, any excess concessional contributions will also count against the non-concessional contributions cap. If you’d like more information on the nonconcessional contributions cap, please read the Tax on Super fact page.
Monitoring your contributions
If you make concessional contributions to other super funds, then these contributions are added to your concessional contributions in Qantas Super to assess whether you have exceeded your cap – this calculation is done by the ATO.
You are responsible for monitoring the level of concessional contributions made to your super. Neither the Trustee nor your employer can do this on your behalf. Qantas Super can accept contributions above the caps.
Timing of your contributions can also be important. Contributions are counted towards the cap in the year in which they were credited to your super account.
Was this helpful?
Other info you might be interested in
We're here to help
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.