The annual non-concessional contributions cap is $100,000 for the 2018/2019 year, and also for the 2017/2018 year.
If a person is eligible take advantage of the bring-forward rules, then an individual can make up to $300,000 in non-concessional contributions for the 2018/2019 year (or 2017/2018 year), representing his or her annual cap over a 3-year period.
An individual aged 65 years or over is not able to use the bring-forward rules, subject to one exception (see article link at end of this article).
Warning: Since 1 July 2017, that is, for the 2017/2018 year and 2018/2019 year and future financial years, if you have a Total Superannuation Balance of more than $1.6 million in super you cannot make non-concessional contributions, and if you have more than $1.4 million in super, your use of the bring-forward rule is restricted. For more information on this restriction, see SuperGuide articles Total Superannuation Balance: 7 reasons why your TSB matters and Super contributions: Bring-forward rule and your Total Superannuation Balance.
Transitional rules apply to bring forwards triggered pre-July 2017
If you triggered the bring-forward rules during the 2016/2017 year (or during the 2015/2016 year), then you are subject to a transitional bring-forward cap. Until 30 June 2017, the annual NCC cap was $180,000 and the bring-forward cap was $540,000. If a person fully utilised the higher $540,000 bring-forward cap during the 2016/2017 year, even though it relates to post-July 2017 financial years, then it is within the cap for that year.
If the bring-forward is carried forward into the 2017/2018 year or the 2018/2019 year, then a lower transitional cap applies from July 2017, reflecting the lower annual cap (for more information on the transitional rules, see SuperGuide article Understanding the transitional bring-forward rule (for 2018/2019 and 2017/2018 years).
Background: We received many emails querying whether the old $180,000 NCC cap applied for the 2016/2017 year, due to the confusing announcements by the federal government. In the May 2016 Federal Budget, the government originally announced a lifetime NCC cap of $500,000 from 3 May 2016. In September 2016, they reversed this announcement and then announced that new caps would apply from July 2017, and the pre-existing caps that applied for the 2015/2016 year and 2016/2017 year (before the Budget debacle) would continue to apply. The specific provision that indicates that pre-July 2017 rules apply for the 2016/2017 year is specified here, from the legislation, Schedule 3—Non-concessional contributions [from the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016]
“(3) To avoid doubt, this section does not affect your non-concessional contributions cap for any financial year that ended before 1 July 2017.”
For more information…
For more information about non-concessional contributions for the 2018/2019 year (and for 2017/2018) year, see the following SuperGuide articles:
- Your 2018/2019 guide to non-concessional (after-tax) contributions
- Bring-forward rule: A definitive super guide
- Understanding the transitional bring-forward rule (for 2018/2019 and 2017/2018 years)
- New normal: $100,000 non-concessional contributions cap
- Non-concessional contributions: 10 facts about the $100,000 cap
- Total Superannuation Balance: 7 reasons why your TSB matters
- Super contributions: Bring-forward rule and your Total Superannuation Balance