The carry-forward rules allow you to make extra concessional contributions – above the general concessional contributions cap ($25,000 per year).
An unused cap amount occurs when the concessional contributions made in a financial year were less than your annual concessional contributions cap. This carry-forward arrangement means you can contribute funds up to the unused concessional cap amounts from previous years – up to the maximum of five years.
As this scheme was introduced in July 2018, this financial year you have three years of unused concessional caps available to you.
To use your unused cap amounts you need to meet two conditions:
- Your total super balance at the end of 30 June of the previous financial year is less than $500,000.
- You made concessional contributions in the financial year that exceeded your general concessional contributions cap.
Concessional contributions include:
- Employer contributions (including contributions made under a salary sacrifice arrangement)
- Personal contributions claimed as a tax deduction.
How to view your carry-forward concessional contributions
You can view and manage your concessional contributions and carry-forward concessional contributions using ATO online services through myGov.
Log in to ATO online services, select Super, then navigate to Carry-forward concessional contributions.
Want to know more?
If this is of interest to you, its best you speak with a professional so all of your personal circumstances can be taken into consideration. This strategy can be used in conjunction with others to minimise the amount of tax you have to pay. Engage with our team to have your personalised tax plan prepared before 15 June 2021.
We encourage you to speak with one of our Accountants or our SMSF Specialists Scott Coghlan or Sean Yan.
