contributions are contributions made on your behalf by someone other than your
spouse for example, an employer.
They also include contributions you make
personally but for which you claim a tax deduction. Not everyone is allowed to
claim a tax deduction for their own contributions – generally it’s people who
are self-employed or not working.
Changes in 2017 have
meant that anyone is allowed to claim a personal tax
deduction for contributions as long as they meet the criteria
for claiming them.
The reason these contributions are called “concessional” is that they
are being treated in a favourable way from a tax perspective. They give rise to
a tax deduction for whoever makes the contribution and they are only taxed at
15% when they are received by your SMSF.
Beneficial tax treatment like this is
often described as giving tax concessions, hence the name, concessional contributions.