WEEKLY E-MAIL

27 May 2024

NON-CONCESSIONAL SUPERANNUATION CONTRIBUTIONS

By Paul Nicol

In addition to concessional contributions that were covered in last week’s email, you can also make non-concessional contributions into superannuation to boost your assets for retirement.

Non-concessional contributions are after-tax contributions that form the tax-free component of your superannuation benefits. The non-concessional contribution cap is set at four times the annual concessional cap. For the current financial year, the non-concessional contribution cap is $110,000 and will be increasing to $120,000 from 1 July 2024.

To be eligible to make non-concessional contributions, you must be under age 75 at the time the contribution is made, and your Total Super Balance (TSB) must be less than $1.9 million as of 30 June 2023.

Bring Forward Contributions

Individuals under age 75 at any time in the financial year can bring-forward up to two years’ worth of non-concessional contribution cap in that financial year, allowing them to contribute a larger amount without exceeding their cap. This is known as the bring-forward rule.

If triggered in the current financial year, the maximum amount that can be contributed to superannuation as a non-concessional contribution under the bring-forward rule is $330,000, provided your TSB as at 30 June 2023 was below $1.68m.

If your TSB was between $1.68m to $1.9m as at 30 June 2023, the table below shows the maximum amount that can be contributed as a non-concessional contribution this financial year:

The increase in the non-concessional contribution cap from 1 July 2024 will also increase the maximum amount that can be contributed under the bring-forward rule to a maximum of $360,000, provided your TSB as at 30 June 2024 is below $1.66m. The table below shows the maximum amount that can be contributed as a non-concessional contribution from next financial year if your TSB is between $1.66m – $1.9m:

However, it is important to note that the cap increase from 1 July 2024 does not apply where the bring-forward rule has been previously triggered, and you are within the bring-forward period, i.e. you triggered a bring-forward contribution this financial year (2023-24) or last financial year (2022-23). In this case, the remainder of the bring-forward period will be based on the non-concessional cap when the bring-forward rule was triggered, less the non-concessional contributions made during that period.

Topping up your superannuation balance by making additional contributions can make a big difference to your superannuation balance at retirement.

If you want to discuss non-concessional contributions and the specifics of your situation, please reach out to your adviser.

Paul Nicol

Managing Partner
Senior Financial Planner
SMSF Specialist Advisor™
Barron’s Top Financial Adviser 2017-2023
Authorised Representative No. 230876

If you have any questions or comments, please email me at paul@gfmwealth.com.au

Disclaimer: This document is not an offer or invitation to any person to buy or sell any interest in or deposit funds with any institution.  The information here is of a generic nature, and does not take into account your investment objectives or financial needs.  No person should act upon this information without firstly seeking competent, professional advice specifically relating to their own particular situation.

Copyright: © This publication is copyright. Subject to the conditions prescribed under the Copyright Act, no part of it may, in any form, or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced or transmitted without permission. Enquiries should be addressed to GFM Wealth Advisory.