Using up to three years of caps in a single year
Non-concessional contributions – the basics
Non-concessional contributions (NCCs) refer to money you put into your super fund using after-tax dollars and don’t claim a tax deduction on. Some people choose to make non-concessional contributions when they’ve reached their yearly concessional (before tax) contribution cap.
There are limits on how much you can contribute each year. For NCCs, the cap is currently set at $110,000.
An opportunity to utilise future caps
Under the ‘bring-forward’ rules, an eligible person can bring-forward up to two years’ worth of non-concessional caps. This means the member can contribute a greater amount in one financial year (ie potentially up to $330,000) without breaching their NCC cap.
The number of years’ worth of NCCs that may be brought forward (either one or two) is determined by the member’s total super balance as at 30 June of the prior year. The table below illustrates (figures are current as at the time of writing).
Total super balance on prior 30 June
|Non-concessional cap amount|
|Less than $1.48M||$330,000|
|$1.48M to less than $1.59M||$220,000|
|$1.59M to less than $1.7M||$110,000|
|$1.7M or more||$0|
Once a person reaches their bring-forward cap amount, they cannot make any more NCCs until the bring-forward period resets.
The NCC caps apply on a “use it or lose it” basis and the bring-forward rule is not retrospective. This means that if you have not made NCCs for several years in the past, this cannot be added to your NCC limit for the current financial year.
The bring-forward rule is triggered automatically once NCCs in excess of $110,000 are made in a single financial year. You are not required to make an election, or complete any specific paperwork.
Age limit to trigger the bring-forward NCC cap
In 2021-22, you must be under age 67 on 1 June 2021 to be able to access the bring-forward NCC cap in this financial year.
From 2022-23 onwards, the age threshold increases. You must be under age 75 on 1 July of the financial year to be able to access the bring-forward NCC cap.
A simple example
Bronwyn is 53 years old and has a total super balance of $900,000. She is eligible to utilise the bring-forward rules.
In this financial year, Bronwyn makes non-concessional contributions which total $200,000. As this exceeds the NCC cap of $110,000, the bring-forward rule is triggered automatically. For the current financial year, and the two following financial years, Bronwyn can make further NCCs of $130,000 ($330,000 less $200,000).
Bronwyn cannot contribute any more than $130,000 until the three-year bring-forward period resets.
Be sure you understand how it works
If you’re thinking of utilising the bring-forward rules, you should speak with your super fund before making any decisions.
Boost your super and claim a tax deduction by making a personal tax-deductible contribution
Catch-up on any unused concessional (before-tax) contribution caps from the previous two years using the ‘carry-forward’ provisions.
Help grow your partner’s super savings and claim a tax offset for yourself using the spouse contributions tax offset
If you’re a low- to middle-income earner and make an after-tax contributon you might be eligible
See if you’re eligible for the federal government’s low income super tax offset
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