Forman Financial Services

Utilise carry forward concessional contributions

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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