Topping up your super with ‘catch-up’ contributions

Have you considered topping up your super? If you haven’t fully utilised your super contribution cap for a previous financial year, you may be eligible to make ‘catch-up’ concessional contributions by carrying forward unused amounts.

How does it work?

From 1 July 2018, if your concessional contributions (CCs) are below the financial years CC cap, you can carry forward unused CC amounts to a future financial year for up to five years.

The first financial year you can accrue unused CCs from is 2018/19.

Why should I do this?

Contributing to super is a tax-effective way to save for your retirement.

Concessional super contributions are paid from your income before tax. Super contributions are taxed at the concessional rate of 15%, rather than your marginal tax rate which could be as high as 47%. Investment earnings within super are also taxed at the concessional rate.

Please note, individuals with income from certain sources in excess of $250,000 during 2020/2021 will pay an additional 15% tax on concessional contributions.

Am I eligible?

To be eligible to carry forward CCs you must meet the following conditions:

  • total super balance must be below $500,000 on 30 June of the previous financial year
  • be under age 75 and meet the ‘work test’ rules if you’re above age 67

Seek advice

To find out if you’re eligible to carry forward unused CC amounts, call our office on (07) 5492 0350. One of our financial advisors will be happy to assist you.

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