The carry forward rule is a provision that allows Members to contribute unused amounts as concessional contributions.
As of the 1st of July 2018 if your total superannuation balance is less than $500,000 you are able to add unused amounts to your original concessional contributions cap of $25,000 ($27,500 from 1 July 2021).
John is an employee and only receives super guarantee contributions from his employer. Over the four years, John has a significant unused portion. John could utilise carry-forward concessional contributions to use any of this unused cap by making addition contributions into his super. In financial year 2021/2022, John could make a $80,500 concessional contribution to super on top of the $6,000 he would receive from his employer.
The ATO have a full index of listings regarding the concessional contributions cap amount and unused amount. For more information please refer to the ATO website here.
For more information on contributions, please see here for more on non-concessional contributions and the provision regarding the bring forward rule specifically for non-concessional contributions.
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Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.
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