Concessional Contributions: Division 3A
Concessional contributions are those contributions that are made for you by the Qantas Group1 from your before-tax salary. They include:
- employer contributions (including superannuation guarantee contributions);
- salary sacrifice contributions;
- administration fees paid by the Qantas Group on your behalf; and
- any other concessional contributions
The contributions and benefits vary between divisions of Qantas Super, so if you change employment classification or move between divisions, different contributions may be included as concessional contributions.
1Qantas Airways Limited and associated employers
Concessional contributions cap
Concessional contributions are paid into your super from before-tax salary. While you don’t pay income tax on these contributions, contributions tax of 15%1 is charged on concessional contributions that go into your super. Because you may get a tax advantage by putting money into your super from before-tax salary, the Government limits the amount that can be paid into your super and taxed at this lower contributions tax rate. This limit is called the concessional contributions cap.
The 2023/24 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 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.
1An additional 15% tax will apply to individuals with combined earnings and concessional contributions exceeding $250,000 in the 2023/24 income year.
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 Qantas Super 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.
Any contributions over your concessional contributions cap will also count towards your non-concessional (after-tax) contributions cap. If you’d like more information on the non-concessional contributions cap, please refer to the Tax on Super fact page.
What happens if I exceed my cap?
If your concessional contributions exceed your cap, then the amount above your cap will be taxed at your marginal tax rate.
The ATO will include any concessional contributions made in excess of the 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 – see the ‘Concessional contributions cap’ section). 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; this is to account for the deferred payment of tax on these monies.
You may also have the option to withdraw any excess concessional contributions (less any contributions tax) from your account. 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.
Calculating your administration fee
For Division 3A members, administration fees are paid on your behalf by the Qantas Group. Legislation requires that such amounts paid by the Qantas Group be counted as part of your concessional contributions.
For 2023/24 this is calculated as:
| Type of fee | Amount counted as a concessional contribution |
|---|---|
| Administration fee | 0.25% pa1 x Superannuation Salary plus 0.01% pa2 account balance (APRA fee)3 |
1Calculated based on your Superannuation Salary as at 1 July 2023 and capped at $1,050 each year.
2This rate is effective 1 July 2023 and may change over time. We will notify of you of any changes as required by law.
3APRA is the Australian Prudential Regulatory Authority. This rate represents a contribution to the annual levy paid by Qantas Super to APRA. Calculated on your account balance at 1 July 2023.
Calculating your concessional contributions for the year
Your annual concessional contributions for Qantas Super can be estimated each year. However, it is not possible to calculate your actual annual concessional contributions until after the end of the financial year (when all your contributions have been received by Qantas Super).
An example of how concessional contributions for 2023/24 in Qantas Super will be calculated is shown in the next column. Remember, you need to add any concessional contributions made to other super funds to the amount in Qantas Super when monitoring contributions against your cap.
Example for 2023/24
A Division 3A member:
- At the beginning of the financial year on 1 July 2023, has a Superannuation Salary of $100,000 and has an account balance of $120,000; and
- For the 2023/24 financial year, has employer Superannuation Guarantee (SG) contributions of $11,000, voluntary Salary Sacrifice contributions of $9,000 and no other concessional contributions made to Qantas Super.
The concessional contributions that would be reported to the ATO for 2023/24 are:
Total concessional contributions for the year = $20,262
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