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NTC vs contribution rate – what’s the difference?

Published - 25 January 2024

When we calculate the contributions made to your defined benefit account in a financial year, we add together two components:

  • notional taxed contributions (NTC), and
  • accumulation component.

Let’s take a closer look at the elements that make up each of these components.

What are NTCs?

Notional taxed contributions (NTCs) are when your employer contributes to your fund in general rather than specifically to you as a member. This generally represents the contributions your employer would make if you were a member of an accumulation fund. The contribution rate used to calculate your NTC is a percentage calculated by an Actuary to represent the employer funded component of your Defined Benefit. The NTC is the dollar amount resulting from multiplying the contribution rate by your salary. Service (e.g. how long you work during the year) is also a factor in the calculation. Your contribution rate may not necessarily be equal to your accrual rate. For more information, please see the Defined Benefit Handbook and relevant factsheets on your plan microsite.


As a general example, if your benefit category had a contribution rate of 10% and your salary was $80,000, your NTC would be $8,000 (10% of $80,000 = $8,000). Some defined benefit plans also include other types of contributions, so it’s important to check the Defined Benefit Handbook on your plan microsite for the exact formula that applies to your benefit.

What is your accumulation component?

Your accumulation component is any concessional contributions made during a financial year that are not part of your NTC.

These include:

  • any salary sacrifice contributions you make
  • any personal contributions you claim as a tax deduction
  • any additional employer contributions including any administration fees and costs paid by your employer.

What level of concessional contributions can you make?

The concessional contributions cap for the 2023-24 financial year is $27,500. This figure is indexed each year on 1 July in increments of $2,500.

The amount of concessional contributions we report to the Australian Taxation Office (ATO) is the sum of the NTC and the accumulation component.

Using the NTC example above, if there was also an accumulation component of $5,000, the total amount of concessional contributions to be reported to the ATO is $13,000 ($8,000 + $5,000). The member could make additional salary sacrifice contributions of up to $14,500 ($27,500 - $13,000) without breaching the concessional cap of $27,500.

How to check your total concessional contributions

You can check your contributions in Member Online via the Contributions tab.

If you have super accounts with other funds, you can check the contributions to those accounts at myGov.

Want more information?

If you’d like more information on how your concessional contributions are calculated, please see the Salary Sacrifice Contributions for Defined Benefit Members factsheet available on your microsite or contact us on 13 11 84.