BEST PERFORMING PENSION FUNDS
Check out the best performing pension funds across 5 different investment categories over 1 year and 10 years, updated to 30 June 2023.
SuperGuide members Q&A: September 2023
Thursday 28 September 2023 at 11:00 am AEST
In this webinar super expert Garth McNally will answer recent questions from SuperGuide members.
Q: I am told that if your personal Transfer Balance Cap (TBC) is under the cap, say your ATO published TBC is $1.6M in the 21-22 year and the general TBC is $1.7M for the 22-23 year (and assuming you have not exercised bring forward rules for non-concessional contributions), you can contribute the full non concessional contribution of $110,000 in 22-23 rather than the $100,000 difference between the caps?
A: Your personal TBC is not part of what determines if you are eligible to use the non-concessional contribution cap and bring forward arrangements.
What is considered is your total super balance (TSB) on the prior 30 June and the general transfer balance cap (TBC) – which will be different from your personal TBC if you commenced a retirement income stream prior to 1 July 2021.
If your TSB on 30 June 2022 was below the general transfer balance cap ($1.7 million in 22-23) and you are not in an active bring forward period, then you are eligible to use the standard $110,000 non-concessional contribution cap in 2022-23. This is true no matter how close your TSB was to the $1.7 million limit – you don’t need $110,000 of ‘space’ between the cap amount and your TSB.
Your TSB on 30 June also determines whether you’re permitted to use bring forward rules in the following financial year and whether you have an available 2-year or 3-year bring forward period.
As the general TBC will increase to $1.9 million on 1 July 2023, those with a total super balance below $1.9 million on 30 June 2023 will have access to the non-concessional contribution cap in 2023-24 (regardless of their own personal TBC).
Learn more about the difference between your total super balance and your transfer balance cap and bring forward rules.
Important: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.