Three-year bring-forward rule for super contributions

Superannuation non-concessional contributions - three-year bring-forward

Update: note the potential changes announced in the 2016 Budget.

The three-year bring-forward provision allows some super fund members to use three times the non-concessional contributions cap during a three-financial year period. For example, a member may have a $ 150,000 non-concessional contributions cap, and they could make the following contributions without triggering excess contributions tax:

  • Year 1: $ 200,000
  • Year 2: $ 200,000
  • Year 3: $   50,000

Or:

  • Year 1: $ 450,000
  • Year 2: $            0
  • Year 3: $            0

Though, of course, not the full amount of the three-year bring-forward needs to be used once triggered. Read more...

CGT Cap for Superannuation: what is it, how much is it?

What is the CGT Cap?

The CGT cap for superannuation contributions is a lifetime contributions cap for some contributions relating to the small business CGT concessions.

The CGT cap is a lifetime cap – an opposed to the annual contribution caps, however it is indexed and these indexed amounts increase a persons lifetime cap. For example, say a member had used $ 1,100,000 of their cap in the 2009/10 financial year – the full amount of their cap. When the cap indexed for the next year their remaining lifetime CGT cap would have increased to $ 55,000, due to the indexation. Read more...

Henry Tax Review – SMSF & Superannuation

Superannuation Tax - Henry Tax Review

As it is now over four years since the Henry Tax Review, or to give it the full title the Australia’s Future Tax System Review, was released it seemed like good time to revisit some of the recommendations to see which have been implemented and which have not.

The Henry Tax Review

Announced in May 2008, around the federal budget by then treasurer Wayne Swan the Henry Tax Review was to be a “comprehensive review of Australia’s tax system to create a tax structure that positions us to deal with the demographic, social, economic and environmental challenges of the 21st century“. When the report was handed down, in December 2009 the review panel had made a total of 138 recommendations, including several about superannuation. Read more...