Super Update – Further details on the new NCC bring forward cap


Following on from our Super Update last week, the Treasurer has provided further clarification regarding how the transitional rules will work for individuals who trigger the $540k cap before 1 July 2017.

Individuals have one last opportunity this year to use the higher personal after tax contribution limits of $180,000 per year. Where the taxpayer are in a position to take advantage of this, they could contribute up to $540,000 before 30 June 2017. Post July 2017, the bring-forward cap will be recalculated to reduce the remaining period’s annual caps from $180k per year to $100k per year.

Take an example: If an individual was to trigger the $540k bring-forward cap in the current year by making a $250k on after tax contribution to their superannuation fund, they would only be able to contribute a further $130k over the next 2 income years. The total over the 3 years of $380k represents the current year’s annual cap of $180k, plus the $100k annual cap for the next 2 years under the new rules.

Therefore, if you are in a position to consider utilising the $540k bring-forward cap in the current year to be able to contribute up to an extra $160k in non-concessional contributions. Prior to implementing the above strategy, please contact us to ensure you implement correctly.


Authored by Jason DeMarte and Jemma Sanderson