New Bring Forward Rules from 1 July 2021 in a Nutshell

Know the Rules

With effect from 1 July 2020, if you are under 67 years of age at any time in a financial year, you may be able to make a non-concessional contribution up to three times the annual non-concessional contribution cap in that financial year depending on your Total Superannuation Balance (TSB).

The annual non-concessional contribution cap amount has increased from $100,000 to $110,000 per year from 1 July 2021. The three years bring forward rule limit has also correspondingly increased from $300,000 to $330,000 from 1 July 2021.

Unfortunately, the indexation of the total superannuation balance (TSB) on 30th June 2021 adds an additional layer of complexity in establishing the quantum of non-concessional contribution that a trustee can contribute to the self-managed superannuation fund.

We have summarized these rules in the flowchart below to ensure that the trustees have clarity as to how these contribution rules operate.

 

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DISCLAIMER: This information is an interpretation of rules, regulations and standards. It should not be considered as general or specific advice and neither purports, nor is intended to be advice on any particular matter. No responsibility can be accepted for those who act on the contents of this publication without first obtaining specific advice. Liability limited by a scheme approved under Professional Standards Legislation.