The non-concessional contribution cap reduced to $100,000 per year from 1 July 2017 which changed the 3 year bring forward rule to $300,000. Non-concessional contributions are after-tax contributions that you contribute to your super fund.

People between the ages of 65 to 74 are only able to make non-concessional contributions where they meet the work test which is where you are gainfully employed for 40 hours in a consecutive 30 day period.

Step 2 in maximising your superannuation benefits is to utilise as much of your non-concessional contribution cap each year as cash flow allows.

When you happen to sell assets, you may want to consider contributing part of the proceeds into your super.

If you are under 65, you are able to utilise the 3 year bring forward rule where you can contribute $300,000 in one financial year with no further contributions in the next two financial years. You will need to have less than $1.4 million in superannuation to utilise the whole $300,000 bring forward rule. When you have more than $1.6 million in superannuation you are unable to make any non-concessional contributions.

Due to the numerous rules, please seek specific advice in relation to your circumstances before using the bring forward rule.

If you exceed your non-concessional contribution cap, you have two choices. You can either choose to withdraw your excess non-concessional contributions and earnings and the earnings amount will be taxed at your marginal rate of tax with a 15% rebate or you can leave your excess non-concessional contributions in the super fund and the whole amount of the excess non-concessional contributions will be taxed at the top marginal rate of tax of 47%.

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