Can I bring forward non-concessional contributions?
The amount of the non-concessional contributions cap you can bring forward is either: three times the annual non-concessional contributions cap over three years (that is, $300,000) if your total super balance on 30 June of the previous financial year is less than $1.4 million.
What is the 3 year bring forward rule?
The bring-forward rules allow you to advance your non-concessional contributions caps from a three-year period and use them over a shorter period – either all at once or as several larger contributions. From 1 July 2021, the annual general non-concessional (after-tax) contributions cap is $110,000.
Is it worth making non-concessional contributions?
Making non-concessional contributions to your spouse’s super fund can be an effective strategy to reduce, or even eliminate, the amount of tax you pay. This strategy can also assist in equalising the level of retirement savings that you and your spouse have.
What is non-concessional contributions cap 2021?
From 1 July 2021, the non-concessional contributions cap is being increased to $110,000 as a result of indexation in line with average weekly ordinary time earnings (AWOTE). If you contribute more, you may have to pay extra tax. From 1 July 2017 to 30 June 2021, the non-concessional contributions cap is $100,000.
What happens if you go over the non-concessional contributions cap?
The excess non-concessional contributions will be taxed at the highest marginal tax rate plus Medicare Levy. issue your super fund with a release authority to pay the ENCC tax liability amount to us within 10 business days.
When can you use the bring-forward rule?
The bring-forward rule is automatically triggered as soon as you make a non-concessional contribution that exceeds the annual cap. For example, if you contributed $150,000 as a non-concessional contribution in the 2020–2021 financial year, this would be $50,000 over the annual cap.
What happens if you exceed the non-concessional contributions cap?
What happens if you go over the non concessional contributions cap?
What are non concessional contributions?
Personal Contributions made into an SMSF from after tax income on which no tax deduction is claimed are known as Non Concessional Contributions. Non Concessional Contributions are personal contributions made into your SMSF from your own personal Bank Account and not from your Employer.
Is Downsizer contribution concessional?
Your downsizer contribution is not a non-concessional contribution and will not count towards your contributions caps.