NCC vs CC: Which Super Contribution Strategy Works for You?

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When it comes to growing your superannuation, understanding the difference between concessional contributions (CC) and non-concessional contributions (NCC) is essential. These two types of contributions offer different tax treatments, caps, and strategic advantages—especially for women planning for retirement or navigating midlife financial decisions.

What Are Concessional Contributions (CC)?

Concessional contributions are made from before-tax income. They include employer Super Guarantee (SG) payments, salary sacrifice arrangements, and personal contributions you claim as a tax deduction.

These contributions are taxed at 15% when they enter your super fund. If your income exceeds $250,000, an additional Division 293 tax of 15% may apply. As of the 2025–26 financial year, the annual CC cap is $30,000.

CCs are ideal if you're looking to reduce your taxable income while building your retirement savings. They’re especially effective for women in their peak earning years or those returning to work after a career break.

What Are Non-Concessional Contributions (NCC)?

NCCs are made from after-tax income—you’ve already paid income tax on this money. These contributions are not taxed when entering your super and form part of the tax-free component of your balance.

The annual NCC cap is $120,000, or up to $360,000 over three years using the bring-forward rule (if your total super balance is under $1.9 million).

NCCs are a great option if you’ve received a windfall (like an inheritance or property sale) and want to boost your super without triggering extra tax. They’re also useful for those who’ve already maxed out their concessional cap.

Which Strategy Is Right for You?

Choosing between CC and NCC depends on your income, tax position, and long-term goals. If your marginal tax rate is higher than 15%, CCs offer immediate tax savings. If your rate is lower, NCCs may be more effective.

For many women, a balanced approach works best—using CCs for regular contributions and NCCs for lump sums when available. The key is to understand your options and align them with your broader financial strategy.

How Prosper Financial Planning Supports You

At Prosper Financial Planning, we don’t believe in one-size-fits-all advice. We believe in you.

We guide women through financial planning that’s tailored to your life stage, your values, and your vision. Whether you’re seeking a second opinion, planning for retirement, or navigating a major life change, we’re here to help you find clarity—not complexity.

Our approach is warm, modern, and grounded in real-life understanding. We’re not just about spreadsheets—we’re about strategy, support, and empowerment.

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Financial wellness isn’t reserved for the wealthy—it’s available to every woman who wants to feel confident and in control.

Let’s connect. Whether it’s a conversation, a consultation, or a coffee, we’re here to help you move forward with clarity and confidence.

References

• Australian Taxation Office – Understanding Concessional and Non-Concessional Contributions

• National Seniors Australia – Super Contributions and Caps

• MLC – Guide to Non-Concessional Contributions

• SuperGuy – Concessional vs Non-Concessional Contributions

• Passive Investing Australia – Superannuation Contribution Types