Did you trigger the bring forward rule in 2016 or 2017? Do you know what your remaining cap is under the new Transitional Bring Forward Rules?

The three year bring forward rule is a superannuation rule that allows a fund member to contribute up to three times the non-concessional contributions cap in a financial year, or over the next two financial years.

If you triggered the bring forward rule in 2016 and 2017 you will have a new adjusted cap due to the super reforms. This is best illustrated with an example:

Transitional Bring Forward Rule
2016 NCC Cap 2017 NCC Cap 2018 NCC Cap
$180,000 $180,000 $100,000

 

If Harry triggered the bring forward rule in 2016 by contributing $200,000 and then contributed a further $100,000 in 2017, what is his new adjusted cap in 2018?

Year 1 cap $180,000

Year 2 cap $180,000

Year 3 cap $100,000

TOTAL adjusted bring forward cap is therefore $460,000 ($180k + $180k + $100k)

As he has already contributed $300,000 Harry can only contribute a further $160,000 in the 2018 financial year.

 

Contact us if you are not sure what your non-concessional contribution cap is for 2018 or if you wish to discuss any other superannuation reforms that may impact you.

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.