Q: I understand the three-year bring-forward rule that allows you to contribute up to $450,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $450,000 on 1 Dec 2010, does that mean I can contribute another $450,000 after 1 July 2013 (or should it be after 1 Dec 2013)?
For readers who don’t understand the bring-forward rule, refer to the article: Your 2011/2012 guide to non-concessional (after-tax) contributions.
The contributions caps (concessional or non-concessional), including the bring-forward rule, relate to the financial year only rather than the anniversary of the contribution, or a 12-month calendar year.
For example, if an individual took advantage of the bring-forward rule on 1 December 2010, making a $450,000 non-concessional contribution, such a contribution would represent the individual’s after-tax cap for the 2010/2011, 2011/2012 and 2012/2013 financial years.
Any further non-concessional contributions could then be made from 1 July 2013.
Note: Anyone considering contribution strategies should do their own research, or seek advice, to ensure such strategies are appropriate to their financial circumstances and needs.
See also
- Wearing two contributions caps
- Super contributions: Juggling two caps is not excessive
- Watch the (contributions) caps when super sailing
- Non-concessional contributions: Tread carefully when age 63 or 64 or 65
- Non-concessional contributions at 64
