Carry Forward Concessional

Definition

The carry forward rule is a provision that allows Members to contribute unused amounts as concessional contributions.

New Ruling

As of the 1st of July 2018 if your total superannuation balance is less than $500,000 you are able to add unused amounts to your original concessional contributions cap of $25,000.

 

Carry forward rule for contributions within one year

As an example, say you contributed $17,500 in concessional contributions to your Fund in the 2019 Financial year, you will then be able to carry forward $7,500 into the 2020 Financial year. The total limit for your concessional contributions for the 2020 Financial year will now be $32,500. Any unused amounts from years after 1 July 2018 are available for five years carried forward. If they are not used in this 5 year time-frame they will expire.

Carry forward rule for Super Fund with balances over $500,000

The table below illustrates a Fund that would have more than the allowed amount to receive the carry forward rule, hence the Fund can only contribute $25,000 in concessional contributions.

Table 1

Carry Forward with Low Concessional Contributions

The table below illustrates a Fund that would have an increasing amount in unused cap to receive the carry forward rule, hence the Fund can only contribute more in concessional contributions in further years within a five-year period.

Table 2

 

 

 

 

 

 

 

The ATO have a full index of listings regarding the concessional contributions cap amount and unused amount. For more information please refer to the ATO website here.

Non-Concessional Contributions

For more information on contributions, please see here for more on non-concessional contributions and the provision regarding the bring forward rule specifically for non-concessional contributions.

 

 

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