Q: I understand the three-year bring-forward rule now allows you to contribute up to $300,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $300,000 on 28 Dec 2018, does that mean I can contribute another $300,000 on or after 1 July 2021 (or should it be after December 2021)?
For readers who don’t understand the bring-forward rule, refer to the SuperGuide articles: Your 2018/2019 guide to non-concessional (after-tax) contributions, or Bring-forward rule: A definitive super guide.
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 28 December 2018, making a $300,000 non-concessional contribution, then such a contribution would represent the individual’s after-tax cap for the 2018/2019, 2019/2020 and 2020/2021 financial years.
Any further non-concessional contributions could then be made from 1 July 2021.
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.
For more information on the super contributions rules, see the following SuperGuide articles:
- The short story on super contributions rules (2018/2019 year)
- Super concessional (before-tax) contributions: 2018/2019 survival guide
- Concessional contributions cap: A quick guide (10 Q&As)
- Salary sacrifice and super: A guide for employees and employers
- Superannuation and employees: 10 facts about your super entitlements
- Your 2018/2019 guide to non-concessional (after-tax) contributions
- New normal: $100,000 non-concessional contributions cap
- Non-concessional contributions: 10 facts about the $100,000 cap
- Bring-forward rule: A definitive super guide
- Super contributions: Bring-forward rule and your Total Superannuation Balance
- Contributing super by downsizing your home: 10-point guide