Bring forward of non-concessional contributions - first year is 2016/17

23 February 2017

In this situation only one year of the bring-forward period occurs before 1 July 2017 with two years of the bring-forward period occurring after 1 July 2017.

The maximum bring-forward amount is a composite of the pre 1 July 2017 and post 1 July 2017 non-concessional caps.  Consequently the maximum bring-forward will be $380,000 (ie one year at $180,000 and two years at $100,000).  

However, the following points should be noted in respect of 2017/18 financial year:

  • if the total superannuation balance (immediately at the start of the 2017/18 financial year) exceeds $1.6m, then no non-concessional contributions can be made in respect of the 2017/18 financial year - even if the bring-forward amount has not been exhausted;
  • if the total superannuation balance (immediately at the start of the 2017/18 financial year) is $1.5m or more but less than $1.6m – then the maximum non-concessional contribution which can be made in respect of the 2017/18 financial year is $100,000 or the unused portion (if any) of the bring-forward amount (whichever is the lesser);
  • if the total superannuation balance (immediately at the start of the 2017/18 financial year) is less than $1.5m – then the maximum non-concessional contribution which can be made in respect of the 2017/18 financial year is $200,000 or the unused portion (if any) of the bring-forward amount (whichever is the lesser); and
  • if the member is precluded or limited in the amount of non-concessional contributions which can be made during 2017/18 by operation of the above rules – the member may still be able to make non-concessional contributions in respect of the 2018/19 financial year to the extent that the member has not exhausted their bring-forward cap.

In respect of the 2018/19 financial year, the following points should be noted:

  • if the total superannuation balance (immediately at the start of the 2018/19 financial year) exceeds $1.6m, then no non-concessional contributions can be made in respect of the 2018/19 financial year - even if the bring-forward amount has not been exhausted;
  • if the total superannuation balance (immediately at the start of the 2018/19 financial year) is $1.5m or more but less than $1.6m – then the maximum non-concessional contribution which can be made in respect of the 2018/19 financial year is $100,000 or the unused portion (if any) of the bring-forward amount (whichever is the lesser);
  • if the total superannuation balance (immediately at the start of the 2018/19 financial year) is less than $1.5m – then the maximum non-concessional contribution which can be made in respect of the 2018/19 financial year is $200,000 or the unused portion (if any) of the bring-forward amount (whichever is the lesser).

Very importantly, the member can contribute during the 2016/17 financial year non-concessional contributions of up to $540,000.  This is an exception to the above rules and this exception will cease to apply on and from 1 July 2017.  The exception arises because the current non-concessional contributions rules apply until 1 July 2017.

If the member has contributed non-concessional contributions in respect of the 2016/17 financial year which exceeds $360,000, the member will not be permitted to make any non-concessional contributions in respect of the 2017/18 or 2018/19 financial years as the member will have exhausted their bring-forward cap.

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