If you took money out of your super during the pandemic as part of the COVID-19 early withdrawal scheme, you may be able to put some or all of that money back into super. Returning the money to super will give it time to build up again and compound before retirement.
However, before you start making contributions, you need to be aware of steps you might need to take so you don’t breach any annual caps. Particularly, the non-concessional cap.
What’s the Non-Concessional Cap?
The Non-Concessional Contribution Cap is an annual limit that limits the maximum amount of after-tax contributions you can pay into your super without being charged extra tax.
It’s $120,000 in 2024-25
If you recontribute your COVID-19 early withdrawal back to super with money you’ve already paid tax on (such as transferring money from your bank account into super), it will count towards your Non-Concessional Contribution Cap.
If you recontribute the money to your super that you withdrew under the COVID-19 early withdrawal scheme and this amount will take you over the Non-Concessional Cap, because you’ve already made other after-tax contributions to your super in the financial year, there are steps you can take.
You can complete a COVID-19 Recontribution Form and lodge it with us.
Completing this form and lodging it with us allows us to flag that the recontribution is being made to recontribute money that was taken out under the COVID-19 early withdrawal scheme. Your COVID-19 recontribution will then not count towards your Non-Concessional Cap for the year.
Who needs to complete the form?
You only need to complete the form if the COVID-19 recontribution you’re making will result in you breaching the Non-Concessional Cap for the year.
If you recontribute any or all of the money you withdrew under the COVID-19 early release scheme to your super and use the recontribution form, you won’t be able to claim a personal super tax deduction for that money.
Who does NOT need to complete the form?
If you want to recontribute money you took out under the COVID-19 early withdrawal scheme, but it won’t take you near or over your Non-Concessional Contribution Cap, you don’t need to complete the form.
Transfer Balance Cap and Total Super Balance Cap
All COVID-19 recontributions, just like any other super contribution, will count towards your Transfer Balance Cap and your Total Super Balance Cap. You can find out more about these 2 caps and how they may impact you in our video “$1.9 million limits“.
What are the eligibility criteria?
You can potentially recontribute an amount you withdrew under the COVID-19 early release scheme if you meet the eligibility conditions that are listed on the ATO website. The conditions include:
- you are recontributing money that you withdrew under the COVID-19 early release of super scheme,
- that you aren’t depositing more than you withdrew under the scheme,
- you recontribute the amounts before 30 June 2030,
- you aren’t claiming a deduction in your tax return for amounts you recontribute, and
- we receive the Notice of Recontribution of COVID-19 Early Release Amounts at or before the time you make the recontribution.
To make sure you meet all the eligibility, please check the ATO website for details. https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Re-contributing-COVID-19-early-release-super-withdrawals/
Remember, you must make any recontributions before 30 June 2030.
I want more information
If you want to find out more about making a recontribution to your super to replenish some of the money you took out under the COVID-19 early withdrawal scheme, we recommend you speak to your accountant, tax agent or financial adviser.
You can also read more about making a recontribution of money you withdrew under the COVID-19 early withdrawal scheme on the ATO’s website.