As part of the latest superannuation reforms, from 1 July 2018 individuals are able to make 'carry-forward' concessional super contributions if their Total Superannuation Balance is less than $500,000 on the previous 30 June.
This means if an individual doesn’t use their full amount of the concessional contribution cap (which is currently $25,000), they can carry-forward the unused amount and take advantage of it up to five years later.
The first year in which an individual can access unused concessional contributions is the 2019-20 financial year. Individuals who are aged 65-74 will still need to meet the work test.
Carry-forward contributions are calculated on a rolling basis over five years, but any amount not used after five years expires. These carry-forward rules only relate to concessional contributions into superannuation.
Catch up concessional contributions opportunities
Catch up concessional contributions provide opportunities to save tax, in particular if you have a known upcoming tax event such as a capital gain and boost your retirement savings. The key is the timing of these contributions to make the most of the new rules.
A financial plan from KK Partners can assist with options for contributions, investments and more. Contact us to book an appointment.
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