Dollar Amounts of Non-concessional Caps When the "Bring Forward" Rule Applies

Consider Edward, who makes a non-concessional contribution of $160,000 on 1 July 2009.  He has invoked the application of the “bring forward” rule and the non-concessional contributions caps for the first year (2009/10) and the next two are:

2009/10   Cap is $450,000

2010/11   Cap is $450,000 less non-concessional contributions made in 2009/10

2011/12   Cap is $450,000 less non-concessional contributions made in 2009/10 and 2011/12

As there is no opting out once the “bring forward” rule has been invoked, the contribution caps for the relevant years are fixed.  If, for example, the non-concessional contribution cap increased in respect of 2011/12 financial year, from $150,000 to $180,000, Edward’s cap for 2011/12 would not change.

If in 2012/13 financial year, the financial year after the “bring forward” rule ceases to apply to Edward, the non-concessional contribution cap which would apply would be $180,000.  Edward could again invoke the “bring forward” rule for 2012/13 and the next two financial years by making non concessional contributions of more than $180,000 during 2012/13.