The ability to bring-forward non-concessional contributions, and the bring-forward period, is impacted by a client’s total superannuation balance at 30 June of the previous financial year.
A client’s total super balance in Year 2 and 3 of any bring-forward period will determine whether any remaining cap can be used.
Tables 1 - 4 below demonstrate the interaction between total superannuation balance and the available cap under the bring-forward rule, in the particular financial year that the bring-forward is triggered (Year 1). Choose the particular table that applies to your client, according to the financial year they triggered the bring forward rule.
Table 1: Bring-forward triggered in 2020-21
Less than $1.4 million
$300,000 (3 year bring forward period)
2022-23
At least $1.4m but less than $1.5m
$200,000 (2 year bring forward period)
2021-22
At least $1.5m but less than $1.6m
$100,000 (no bring forward available)
N/A
$1.6 million or more
Nil
N/A
Table 2: Bring-forward triggered in 2021-22
Less than $1.48 million
$330,000 (3 year bring forward period)
2023-24
At least $1.48m but less than $1.59m
$220,000 (2 year bring forward period)
2022-23
At least $1.59m but less than $1.7m
$110,000 (no bring forward available)
N/A
$1.7 million or more
Nil
N/A
Table 3: Bring-forward was triggered in 2022-23
Less than $1.48 million
$330,000 (3 year bring forward period)
2024-25
At least $1.48m but less than $1.59m
$220,000 (2 year bring forward period)
2023-24
At least $1.59m but less than $1.7m
$110,000 (no bring forward available)
N/A
$1.7 million or more
Nil
N/A
Table 4: Bring-forward was triggered in 2023-24
Less than $1.68 million
$330,000 (3 year bring forward period)
2025-26
At least $1.68m but less than $1.79m
$220,000 (2 year bring forward period)
2024-25
At least $1.79m but less than $1.9m
$110,000 (no bring forward available)
N/A
$1.9 million or more
Nil
N/A
Year 1 of the bring-forward period
It’s important to note that the total super balance thresholds in Tables 1-4 above apply only in the year that the bring-forward rule is triggered (Year 1 of bring-forward period).
Total super balance in year 2 and year 3
Where a member has triggered the bring forward rule, it is important to note that if their total superannuation balance just prior to Year 2, or Year 3 (if applicable), of their bring-forward period is equal to or greater than the general transfer balance cap for that year, their non-concessional contributions cap for that financial year is reduced to nil - this means that any non-concessional contributions made in that year will be in excess of the non-concessional contributions cap.
The general transfer balance cap is:
- $1.6m for 2017-18 to 2020-21
- $1.7m for 2021-22 and 2022-23
- $1.9m for 2023-24.
Example 1 − Bring-forward triggered in 2020-21 (Table 1)
Year 1: On 30 June 2020, Laura’s total superannuation balance is $1.35 million (below the threshold of $1.4m to be eligible for a three-year bring-forward cap - see Table 1).
On 1 July 2020, she contributes $180,000, triggering a three-year bring-forward period. $120,000 of her $300,000 bring-forward cap remains immediately after this contribution.
Laura did not make any further contributions in 2020-21.
Year 2: Laura did not make any further contributions in 2021-22.
Year 3: On 30 June 2022, Laura’s total superannuation balance is $1.57 million (having increased with her contributions and earnings over the previous years).
Laura’s remaining bring forward cap is still $120,000 ($300,000 - $180,000).
Her total superannuation balance at 30 June 2022 does not reduce her remaining cap for 2022-23, since it is below $1.7 million (the general transfer balance cap for 2022-23).
Laura is able to contribute up to the remaining cap of $120,000 in 2022-23.
Example 2 − Bring-forward triggered in 2021-22 (Table 2)
Year 1: On 30 June 2021, Paul’s total superannuation balance is $1.35 million (below the threshold of $1.48m to be eligible for a three-year bring-forward cap - see Table 2).On 1 July 2021, he contributes $250,000, triggering a three-year bring forward period.
Paul is able to make a further non-concessional contribution of up to $80,000 until 30 June 2024, subject to his total super balance each year.
Year 2: Paul’s total superannuation balance on 30 June 2022 is $1.65 million. This does not impact his ability to make non-concessional contributions in the 2022-23 financial year, as it is below the general transfer balance cap of $1.7 million. Paul makes the remaining $80,000 contribution in 2022-23.
Year 3: Paul will not be able to make non-concessional contributions in 2023-24 as he is still in a 3 year bring forward period, and he has used up the cap he was entitled to.
Example 3 − Bring-forward triggered in 2021-22 (Table 2)
Year 1: On 30 June 2021, Allan’s total superannuation balance is $1.5 million (below the threshold of $1.59m to be eligible for a two-year bring-forward cap - see Table 2). On 1 July 2021, he contributes $180,000, triggering a two-year bring forward period. $40,000 of his $220,000 bring-forward cap remains immediately after this contribution.
Year 2: On 30 June 2022, Allan’s total superannuation balance is $1.7 million (having increased with his contributions and earnings over the previous year). Allan’s remaining bring forward cap is $40,000 ($220,000 - $180,000). However, his non-concessional cap for 2022-23 is reduced to Nil if his total superannuation balance just prior to the start of 2022-23 is $1.7 million or more ($1.7m is the general transfer balance cap for 2022-23). Allan cannot use his remaining bring-forward cap of $40,000 in 2022-23 due to his total super balance.
Later: Paul cannot use his remaining $40,000 bring-forward cap in 2023-24 as he is no longer in a bring-forward period (he only qualified for a 2 year bring-forward in 2021-22).
Allan’s total super balance on 30 June 2023 is $1.85m. In 2023-24, Allan is no longer in a bring-forward period, however he can't trigger a new bring-forward period due to his total super balance (see Table 4).
Example 4 − Bring-forward triggered in 2021-22 (Table 2)
Year 1: On 30 June 2021, Allan’s total superannuation balance is $1.4 million (below the threshold of $1.48m to be eligible for a three-year bring-forward cap - see Table 2). On 1 July 2021, he contributes $180,000, triggering a three-year bring forward period. $150,000 of his $330,000 bring-forward cap remains immediately after this contribution.
Year 2: On 30 June 2022, Allan’s total superannuation balance is $1.7 million (having increased with his contributions and earnings over the previous year). Allan’s remaining bring forward cap is $150,000 ($330,000 - $180,000). However, Allan’s non-concessional cap for 2022-23 is reduced to Nil since his total superannuation balance just prior to the start of 2022-23 is $1.7 million ($1.7m is the general transfer balance cap for 2022-23).
Allan cannot use his remaining bring-forward cap of $150,000 in 2022-23 due to his total super balance.
Year 3: Allan’s total super balance on 30 June 2023 is $1.85m (less than the general transfer balance cap of $1.9m for 2023-24). In 2023-24, Allan is in Year 3 of his bring-forward period. Allan can use the remaining $150,000 of his bring-forward cap in 2023-24.
If Allan’s total super balance is $1.9m or more on 30 June 2023 he will have a Nil NCC cap in 2023-24 and would not be able to use his remaining bring-forward cap.
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Disclaimer
The information contained in this update is based on the understanding Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) has of the relevant Australian laws as at the article date. As these laws are subject to change you should refer to our website at www.cfs.com.au or talk to a professional adviser for the most up-to-date information. The information is for adviser use only and is not a substitute for investors seeking advice. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no person, including AIL, nor CFSIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. This update is not financial product advice and does not take into account any individual’s objectives, financial situation or needs. Any examples are for illustrative purposes only and actual risks and benefits will vary depending on each investor’s individual circumstances. You should form your own opinion and take your own legal, taxation and financial advice on the application of the information to your business and your clients.
Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
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