Planning Opportunity – Carry forward (Catch-up) Concessional Contributions

From 1 July 2018, individuals with total superannuation balances below $500,000 have been allowed to carry forward the unused portion of their Concessional Contribution cap for up to 5 years (rolling period). Examples of concessional contributions are employer superannuation guarantee contributions, salary sacrifice contributions or contributions that an individual has claimed as a tax deduction.

This provision will first be able to be utilised from in the 2020 financial year being the first year of being able to accumulate unused Concessional Contributions. Any carried forward amounts that are not used within 5 years will expire.

Example

Assumptions:

  • An individual has total superannuation balances of less than $500,000.
  • The individual makes (or their employer makes) $20,000 of Concessional Contributions in the 2019 financial year.
  • The concessional contributions cap is $25,000 in the 2019 & 2020 financial years.

The above scenario means the individual will be able to contribute a maximum of $30,000 on concessional contributions to their superannuation fund in the 2020 financial year i.e. $5,000 that remained unused from the 2019 financial year added to the 2020 financial year contribution cap of $25,000.

Have a superannuation question? Ask your Roberts & Morrow adviser.

Recent Articles

Changes for MYOB subscription holders

18th May 2022

There have been some important changes to MYOB subscription payments. Up until this point, Roberts & Morrow have managed your subscription (practice... Read More

Merger Date & Location Announced

13th May 2022

We would like to provide a further update to clients on our plans in relation to the proposed merger... Read More

All the Winners from the Fleece to Fashion Gala Awards 2022

12th May 2022

The Fleece to Fashion Awards was held at the Deeargee Woolshed on Monday and attracted fashion design entries from... Read More

COVID-related support for SMSFs

27th April 2022

Because of the financial impacts of COVID-19, you (in your role as trustee of an SMSF), or a related... Read More