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SMSF STRATEGY GUIDE

CONCESSIONAL CONTRIBUTIONS CARRY FORWARD

BACKGROUND

In the past, if you didn't use up all your concessional contribution caps in a particular year, then the amount you didn't use were lost. However, this has changed starting from 1 July 2018.

CARRY FORWARD UN-USED CAPS

Simply put, starting from 1 July 2018, you can carry forward any unused concessional contributions cap over a rolling previous 5 year period.

 

However, note that this is only available where your total super fund balance is less that $500,000 at 30 June of the year prior to the contribution.

EXAMPLE

So for example, say you only used $15,000 of the $25,000 concessional contribution cap in the 2018/2019 year.

 

In this example, you have $10,000 of CC cap left over that could then be carried forward and used in the following year, on top of your usual cap that year of $25,000, giving you a total of $35,000 that you could contribute as concessional contributions in the 2019/20 year.

Continuing on, lets say although we could have contributed $35,000, we only did $15,000 again in the 2019/20 year. That leaves us with a rolling carry forward balance of $20,000. When added to the usual concessional contribution cap of $25,000, you then have a total of $45,000 of concessional contributions you could make in the 2020/21 year.