The general Concessional Contributions (CCs) cap increased from $25,000 to $27,500 on 1 July 2021, and careful use of the carry-forward rules may provide additional tax and retirement planning opportunities.
Carry-forward rules recap
An individual must satisfy the following conditions to use their unused CCs cap amounts:
- their total superannuation balance (TSB) is less than $500,000 at 30 June of the prior financial year, and
- they have unused CCs cap amounts in years commencing 1 July 2018 for one or more of the previous five years
These could benefit eligible individuals who may encounter financial windfalls, such as gains on personal investments, or inheritance.
Acctweb
11th-November-2021 |