Lifetime CGT Cap Contribution Timing
A Lifetime CGT Cap contribution can be an effective way to boost your superannuation following the sale of an eligible small business asset. However, one of the biggest traps is not the contribution itself—it’s when you make it.
The Problem
While Lifetime CGT Cap contributions don’t use your non-concessional contribution (NCC) cap directly, they do count towards your Total Super Balance (TSB).
Why This Matters
A large Lifetime CGT Cap contribution made before 30 June may:
- Push your Total Super Balance above key thresholds.
- Eliminate your non-concessional contribution cap for the following financial year.
- Remove access to the bring-forward rule.
Planning a Lifetime CGT Cap Contribution?
The timing of a contribution can be just as important as the contribution itself. Small timing decisions around Total Super Balance thresholds may significantly affect future non-concessional contribution opportunities and bring-forward access.
Contact us today to discuss your super contribution and retirement planning options.
Strategic Lesson
Sometimes waiting a matter of days—not years—can produce significantly better superannuation outcomes.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.