Carry forward rule
The Carry forward rule allows you to contribute to your super account unused concessional (before-tax) contribution amounts from previous financial years. You would have an unused concessional contribution amount if you contributed less than the concessional contribution cap in a financial year.
Concessional contributions cap amount is:
- From 1 July 2021: $27,500 per financial year
- From 1 July 2024: $30,000 per financial year
(Read our Super contribution caps blog for more information on the caps, including what happens if you go over them, and to learn more about the different types of contributions.)
There are a few things to note if you’re considering using the carry forward rule to make extra concessional contributions without paying additional tax:
- To contribute your unused cap amounts you must have a total super balance of less than $500,000 on 30 June of the previous financial year (in your BUSSQ accounts and any other super accounts in your name).
- You can carry forward and contribute unused cap amounts from the 2018-19 financial year onwards. Unused cap amounts from 2017-18 financial year or prior financial years are not able to be carried forward.
- Unused cap amounts are available for a maximum of five years and after this period will expire. For example, unused cap amounts from the 2018/19 financial year will expire at the end of the 2023/24 financial year.
For example:
If in the 2022/23 financial year, you made a total of $20,000 in concessional contributions, as the cap at that time was $27,500, you can carry forward the remaining $7,500 cap amount from that year.
This means, in the 2023/24 financial year, you could make up to $35,000 in concessional contributions.
This $35,000 includes:
- The $7,500 that you can carry forward from the 2022/23 financial year, PLUS,
- The $27,500 of concessional contributions you’re allowed to make in the 2023/24 financial year
For more information on the carry forward rule and other examples of how you could use it to contribute more to your super visit the ATO.
To work out if you have any unused concessional contributions, log into MemberOnline to view the concessional contributions you’ve made to BUSSQ since 2018-19.
If you have multiple super funds you will also need to check with your other super fund/s because contributions made to all your super funds count towards your contribution caps. You should also remember that contributions count towards the cap in the year your super fund receives them. You can also log into ATO online services to view your concessional contributions and the carry forward contributions you have available across all funds (be aware, the information held by the ATO may not be up to date).
Bring forward arrangement
The bring forward arrangement allows you to access your future non-concessional contribution cap amounts. This means you may be able to make up to three years' worth of non-concessional (after-tax) contributions in a single year, without exceeding the cap or paying extra tax.
Non-concessional contribution cap amounts:
- From 1 July 2021: $110,000 per financial year
- From 1 July 2024: $120,000 per financial year
(Read our Super contribution caps blog for more information on the caps including what happens if you go over them, and to learn more about the different types of contributions.)
Eligibility
To be eligible to use the bring forward rule, you must be under the age of 75 and your total superannuation balance must be under the below amounts at the end of the last financial year.
Bring-forward cap first year (applying to 2023–24)
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Bring-forward cap first year (applying to 2024–25 and later years)
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For example, in July of 2024, Dave who is 61 years old and has a total superannuation balance of $400,000, inherits $260,000 and decides to put that money into his super, rather than the bank. Dave takes advantage of the bring forward arrangement and tops up his super account with the $260,000 in a single year. Because Dave hasn’t gone over the $360,000, he can still make further non-concessional contributions of up to $100,000, into his super over the next two financial years.
Be aware that specific age limits and requirements apply. For more information on the bring forward arrangement, other examples of how you could use it to contribute more to your super and how this applies for the 2021/22 and 2023/24 financial years visit the ATO.
It is also important to know that while non-concessional contributions are not taxed as they enter the super fund, once in your account, their associated investment earnings are taxed at a maximum of 15%.
We’re here to help you
If you would like to find out more about contributions, or using the carry forward rule or bring forward arrangement to make additional contributions to your BUSSQ account, our team are available to help you. As a BUSSQ member you also have access to personal financial advice on contributions at no extra cost*. Call us on 1800 692 877.
