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Tax and other useful facts

Bringing forward non-concessional contributions

Section: 6.14

From 1 July 2017, the non-concessional contributions cap amount that a member can bring forward, and whether they have a two or three year bring forward period, depends on their total super balance. Their total super balance is determined at the end of 30 June of the previous financial year in which the contributions that triggered the bring forward. were made.

For 2017-18 and onwards in order to access the non-concessional bring forward arrangement:

  • a member must be under 65 years old for one day during the triggering year (the first year)
  • a member must contribute more than the annual cap ($100,000 for 2020-21)
  • a member's total super balance at the end of 30 June of the previous financial year must be less than the general transfer balance cap ($1.6m from 2017-18) with a capacity greater than the annual non-concessional cap ($100,000 from 2017-18). Therefore, for 2018-19 a member must have a total super balance as at the end of 30 June 2018 of less than $1.5 m to be able to access the bring-forward arrangement.

For 2017-18 and onwards, the remaining cap amount for years two or three of a bring forward arrangement is reduced to nil for a financial year if their total super balance is greater than or equal to the general transfer balance cap at the end of 30 June of the previous financial year.

For 2017-18 the following table represents the bring-forward arrangements for the first year.

Total super balance on 30 June 2017 Non-concessional contribution cap for the first year Bring-forward period
Less than $1.4 million $300,000 3 years
$1.4 million to less than $1.5 million $200,000 2 years
$1.5 million to less than $1.6 million $100,000 No bring forward period, general non-concessional contributions cap applies
$1.6 million or more nil na

CGT cap amount

A CGT cap (a lifetime limit for each member) operates in conjunction with the non-concessional contributions tax regime under which certain contributions are counted towards the CGT cap, rather than the normal non-concessional contributions cap.

Income year Cap amount
2019-20 $1.515m
2020-21 $1.565m

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Thursday, August 27, 2020