Super Investors & the 3 Year Bring Forward

Super investors who are considering taking advantage of the 3 Year Bring Forward may need to consider, with their advisers, whether to delay triggering the bring forward until July 2009.

The “bring forward” is automatically triggered by making non-concessional contributions in excess of the non concessional contribution cap.  Once triggered, the dollar value of the “bring forward” is based upon 3 times the non-concessional contributions cap which applies to the financial year in which the bring forward is triggered.

If you trigger the “bring forward” in 2008/09 (say, by making say $175,000 of non-concessional contributions) then, the dollar value of the “bring forward” will be $450,000, and will apply for 2008/09, 2009/10 and 2010/11 financial years.

However, if you trigger the “bring forward” in 2009/10 (by making $175,000 of non-concessional contributions) the dollar value of the “bring forward” will be $495,000 (3 times the concessional contribution cap for 2009/10) and will apply for 2009/10, 2010/11 and 2011/12 financial years.

Once the “bring forward” is triggered by a super investor, any indexation of the non-concessional contributions cap in the current and the following 2 financial years will not apply to the super investor.