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Non-concessional Amount - bringing forward max amount

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Newbie

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I am after general information on the following question....

 

On the 1/10/18 I added $300,000 as a non-concessional amount to my superannuation.

($0 – $1.4 million - $300,000 - Current year + following 2 years)

 

Does that mean after the completion of the first year 1/10/19 I can then add another $100,000?

Like a continual (rolling) non concessional $300,000 bring forward amount.

 

or do I have to waiting 2 or 3 years before I can add additional amount to my superannuation account?

 

I have read the general supperannuation information on the ATO site and to me there is no clear guidelines.

 

Regards

Timothy

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Best answer

TaxTime Support

Replies 0

Hi @Tavham

 

Welcome to our Community.

 

The non-concessional bring-forward arrangement enables you to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year. This assumes that you were under 65 for at least one day of the year.

 

To be able to contribute three times the cap, your total superannuation balance at 30 June of the previous financial year must be less than $1.4 million. The bring-forward arrangement is automatically triggered by contributing more than the annual cap (currently $100,000).

 

For more information about how this works, refer to the bring-forward arrangements section of the non-concessional contributions page on our website.

 

Assuming you met these requirements, the $300,000 non-concessional contribution that you made on 1 October 2018 not only triggered the bring-forward arrangement but exhausted it. Any additional non-concessional contributions made during the 2019, 2020 and 2021 financial years will exceed the cap.

 

In other words, to avoid exceeding the cap, you won't be able to make another non-concessional contribution until 1 July 2021 (the first day of the 2022 financial year). This of course depends on your 30 June 2021 total super balance.

 

Hope this helps.

 

Thanks,

 

ChrisR

4 REPLIES 4

Taxicorn

Replies 3

Yes you have to wait until you contribute more else you will pay tax on the extra contribution.

Newbie

Replies 2

Hi Macfanboy,

Just confirming do you mean I need to waiting the full 3 years?

 

 

Taxicorn

Replies 0

Yes because you have used this years and the next 2 years now.

 

Best answer

TaxTime Support

Replies 0

Hi @Tavham

 

Welcome to our Community.

 

The non-concessional bring-forward arrangement enables you to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year. This assumes that you were under 65 for at least one day of the year.

 

To be able to contribute three times the cap, your total superannuation balance at 30 June of the previous financial year must be less than $1.4 million. The bring-forward arrangement is automatically triggered by contributing more than the annual cap (currently $100,000).

 

For more information about how this works, refer to the bring-forward arrangements section of the non-concessional contributions page on our website.

 

Assuming you met these requirements, the $300,000 non-concessional contribution that you made on 1 October 2018 not only triggered the bring-forward arrangement but exhausted it. Any additional non-concessional contributions made during the 2019, 2020 and 2021 financial years will exceed the cap.

 

In other words, to avoid exceeding the cap, you won't be able to make another non-concessional contribution until 1 July 2021 (the first day of the 2022 financial year). This of course depends on your 30 June 2021 total super balance.

 

Hope this helps.

 

Thanks,

 

ChrisR

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