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 2008, does that mean I can contribute another $450,000 after 1 July 2011 (or should it be after 1 Dec 2011)?
For readers who don’t understand the bring-forward rule, you can read the article: Your 2009/10 guide to non-concessional (after-tax) contributions.
The contributions caps (concessional or non-concessional), including the bring-forward rule, relate to the financial year 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 2008, making a $450,000 non-concessional contribution, such a contribution would represent the individual’s after-tax cap for the 2008/2009, 2009/2010 and 2010/2011 financial years.
Any further non-concessional contributions could then be made from 1 July 2011.
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.
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