Utilise carry forward concessional contributions 01 Jun 2020

Blog / SMSF

A member’s basic concessional contributions cap is $25,000 per financial year, and concessional contributions such as salary sacrifice or personal deductible contributions may be made while a member is under age 75*. A member aged 65 or over at the time of a voluntary concessional contribution must have satisfied the work test or work test exemption for the contribution to be accepted during 2019-20.

2019-20 is the first financial year that a member may increase their concessional contributions cap beyond the basic cap of $25,000. Any unused concessional contributions cap that accrued in 2018-19 may potentially be used to:

•    increase a member’s concessional contributions cap in 2019-20 beyond the basic cap of $25,000, or
•    increase the concessional contributions cap in another financial year up until 30 June 2024.

To be eligible to increase the 2019-20 concessional contributions cap the member must:

•    have unused concessional contributions cap space from 2018-19 and
•    make concessional contributions in 2019-20 exceeding $25,000 and
•    have a total super balance at 30 June 2019 less than $500,000.

Member’s that did not have a super account, or were no longer residents of Australia in 2018-19 may still use the unused $25,000 concessional contributions cap from 2018-19 if they meet the three conditions above.

If a member did not make any concessional contributions in 2018-19, and their total super balance was less than $500,000 on 30 June 2019, they can increase their concessional contributions cap up to $50,000 in 2019-20.

* Includes the period up to 28 days after the end of the month in which the member turns 75.  

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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.