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  SuperannuationContributionsNon-Concessional Contributions      Monday, 25 January 2021  

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Superannuation Non-Concessional/Undeducted/Post-Tax Contributions


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Preservation

NB!  All earnings and contributions into a superfund since 1 July 1999 are preserved until a condition of release allows them to be withdrawn. 

 

 


   
Some personal contributions will be deemed Non-Concessional
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The Work Test - Gainfully Employed
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Contributions that are exempt from the caps
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Contributions Caps from 1 July 2017
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In addition to applying the usual age and work test restrictions in SIS Reg 7.04 (1), (see the ‘Age & Work Test’ link below), a regulated superannuation fund must not accept any non-concessional contributions in a financial year in respect of a member that exceed:

Age

Non-concessional contribution limit (1)

Under 65 years old on 1 July of the year

$100,000 per annum or $300,000 if averaging over 3 years, provided that the contributions are made prior to turning age 65. Otherwise the work test must be satisfied.

Age 65-74 years old on 1 July of the year

$100,000 per annum – but only if you satisfy the work test (2)


(1)
This cap is equal to 4 times the standard concessional contribution cap.  Therefore if the concessional contribution cap is not indexed in a particular year then this cap will not change either.

Individuals with a total superannuation balance above $1.6 million at 30 June of the previous year will no longer be eligible to make non-concessional contributions.

 

The Bring Forward Rule

(2) People who contribute $300,000 prior to turning 65 (e.g. age 64) will not also be required to meet the work test in the two tax years after they make the contribution.

NB!
 

However if a person does not meet the work test during the tax year that they turn age 65, then they cannot contribute once they have turned 65, even if they have triggered the Bring Forward Rule in either of the previous 2 tax years.

If a person triggers the Bring Forward Rule before they turn age 65 (e.g. making a non-concessional contribution of $100,001 at age 64), and if they are over 65 when they make the additional contributions, then they must also have satisfied the work test in that tax year in order to be able to make additional contributions totalling up to $300,000 over the 3 years.

Note also that once they are over the age of 65 (even if they satisfy the work test in that tax year), they cannot make a contribution that exceeds $100,000. 




   
Bring Forward arrangement and Transitional Rules from 1 July 2017
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Contributions Caps from 1 July 2014 to 30 June 2017
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Contribution Caps from 1 July 2009 to 30 June 2014
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Contribution Caps from 1 July 2007 to 30 June 2009
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Contribution Caps from 10 May 2006 to 30 June 2007
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Contribution Caps on or before 9 May 2006
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This page was last edited on 7 January 2021

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