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Re: Non concessional superannuation bring forward age limit

Newbie

Views 159

Replies 5

I see that the age limit for non concessional contributions has been passed by Parliment on 17th June 2021. My partner turned 65 in March 2021. We are desperate to know if we have to bring forward this financial year 2020-21, or if we can just pay the cap $100,000.00 this financial year and the bring forward amount next financial year.

We are running out of time. My Financial advisor tells me to hold off, yet the ATO tells me it has to be Legislated first.

What do I do???

Having been passed by Parliment does that mean it is safe to wait till next year?

I would appreciate help URGENTLY.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 4

I see that the age limit for non concessional contributions has been passed by Parliment on 17th June 2021. My partner turned 65 in March 2021. We are desperate to know if we have to bring forward this financial year 2020-21, or if we can just pay the cap $100,000.00 this financial year and the bring forward amount next financial year.

We are running out of time. My Financial advisor tells me to hold off, yet the ATO tells me it has to be Legislated first.

What do I do???

Having been passed by Parliment does that mean it is safe to wait till next year?

I would appreciate help URGENTLY.

 

From ATO:

The cut-off age for accessing the bring forward non-concessional contributions cap will increase from 65 to 67 years.

This means individuals aged 65 and 66 who were not previously able to access the bring forward non-concessional contributions cap due to their age may do so.

Once the law commences this will apply to non-concessional contributions made on or after 1 July 2020.

 

This means that

1.  Although the bill was passed last week, it has not been signed into law yet.

2.  We don't know exactly when this will happen

3.  Until it does, no-one can safely tell you that you can make the contribution.

 

5 REPLIES 5

Most helpful response

Devotee Registered Tax Practitioner

Replies 4

I see that the age limit for non concessional contributions has been passed by Parliment on 17th June 2021. My partner turned 65 in March 2021. We are desperate to know if we have to bring forward this financial year 2020-21, or if we can just pay the cap $100,000.00 this financial year and the bring forward amount next financial year.

We are running out of time. My Financial advisor tells me to hold off, yet the ATO tells me it has to be Legislated first.

What do I do???

Having been passed by Parliment does that mean it is safe to wait till next year?

I would appreciate help URGENTLY.

 

From ATO:

The cut-off age for accessing the bring forward non-concessional contributions cap will increase from 65 to 67 years.

This means individuals aged 65 and 66 who were not previously able to access the bring forward non-concessional contributions cap due to their age may do so.

Once the law commences this will apply to non-concessional contributions made on or after 1 July 2020.

 

This means that

1.  Although the bill was passed last week, it has not been signed into law yet.

2.  We don't know exactly when this will happen

3.  Until it does, no-one can safely tell you that you can make the contribution.

 

Devotee

Replies 2

The Bill has now received Royal Assent.

Newbie

Replies 1

Thanks Glenn

The bill received Royal assent on the 22/06/21.

Does this now mean it will come into effect on 01/07/21?

I turn 67 on 21/07/21 and want to make contribution and use the bring forward arrangement before my Birthday.

Devotee

Replies 0

You will be safe to make the contribution before your Birthday. 

 

From 1 July the maximum bring forward contribution will increase from $300,000 to $330,000, this is subject to you satisfying the relevant conditions.

Newbie

Replies 0

Thanks. That is how I see it as well. Sigh.