Are there any circumstances (even if you have to apply to someone somewhere for individual review) where unused concessional contribution caps are allowed to be used/carried forward even if a superannuation balance is over $500k. There are unique circumstances (due for compensation by the govt) where I was unable to work but if I had been able to work I would have used up my full allowance of $27.5k / $30k. Thinking they may pay me the superannuation value I was missing but I am still at a loss if I am not able to use it in the manner in which I would have used it at the time. As it stands they could pay/compensate me $30k and I would have to pay tax on this. In normal circumstances this $30k would have gone into my superannuation reducing my taxable income for that year. Therefore the difference from saving approx $9k to paying $9k is an $18k difference/loss. Hence the question if any circumstances might arise where individual consideration could be given for applying this rule even if a balance was over $500k.
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Are there any circumstances (even if you have to apply to someone somewhere for individual review) where unused concessional contribution caps are allowed to be used/carried forward even if a superannuation balance is over $500k.
No.
Hi @BowBells,
No, there aren't any circumstances where the carry-forward rule can be applied if your total super balance is $500,000 or more at 30 June of the previous financial year. This eligibility requirement is mandatory and applies to everyone and there's no individual review process or exception available, even in unique situations like yours.
The carry-forward rule allows you to use unused concessional contribution cap amounts from up to 5 previous financial years, but only if you meet both conditions:
- your total super balance must be less than $500,000 at 30 June of the previous financial year, and
- you need to make concessional contributions that exceed the general concessional contributions cap in the current year.
These rules are applied automatically by us based on the information reported by your super fund.
Regarding your compensation situation, if you're receiving a payment for loss of earnings or capacity to work, the tax treatment will depend on how the payment is structured and characterised. Some personal injury payments made as super contributions may be excluded from your non-concessional contributions cap if specific requirements are met.
You'll need to discuss your specific compensation arrangements with a tax adviser to understand how the payment will be taxed and whether any special super contribution rules might apply.
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