The 2023-24 financial year is the last chance to use any unused concessional contributions cap from the 2018-19 year under the concessional cap bring forward provisions. Clients should consider if they need to take action before 1 July.
Under the concessional cap bring forward rules, if a super fund member does not fully use their concessional contributions cap in the 2018-19 financial year or a later year, the used cap amount can be carried forward to be used within the next five years, provided the member’s total super balance is less than $500,000 at 30 June of the previous financial year. For example, if your total super balance at 30 June 2023 was $450,000 and you had not used $3,000 of your concessional contributions cap from 2018-19, you could potentially have a concessional contributions cap of $27,500 + $3,000 = $30,500 in the 2023-24 year. But on 1 July 2024 any unused 2018-19 concessional cap will “drop off”.
If you have available unused concessional caps from previous years, it might be advantageous to make concessional contributions in the 2023-24 year, before the amended Stage 3 personal tax cuts come into effect on 1 July 2024. Please contact your Nexia advisor if you have any questions on this or any other super issue.
