Applying the Bring Forward Rule

The “bring forward” rule is automatically invoked by a super investor making more than $150,000 of non-concessional contributions in a financial year.  There is no election or form required to be completed to invoke the rule.

Also, there is no opting out of the “bring forward” rule once the rule applies to a super investor.

But why would anyone want to opt out of the “bring forward” rule?   There is a downside to the “bring forward” rule.  Once the rule is invoked, the non-concessional contribution caps are then set for the first, second and third years.  These caps will not change even if the non-concessional cap is increased due to indexation during the “bring forward” period.