Please note that if you do start a bring forward arrangement, which is triggered by making a contribution(s) of over $120,000 in one financial year, your contributions in the following two years will be limited.
Total superannuation balance
A lifetime cap of $1.9 million applies to your total superannuation balance. Your total superannuation balance includes the combined total of all your super, pension, and any other retirement savings accounts. Non-concessional contributions made to accounts with balances greater than this amount, as at 30 June the previous financial year, will be deemed to be excess contributions – refer to the below section ‘What happens if you exceed the NCC cap?’.
Am I eligible to make after-tax contributions?
To be eligible to make after-tax contributions, your total super balance must be less than the general transfer balance cap at the end of June in the previous financial year. You must also ensure you have provided us with your tax file number (TFN).
People aged 75 and over can no longer make non-concessional contributions. (Note: contributions can be received up to 28 days after the end of the calendar month that an individual turns 75).
What happens if you exceed the NCC cap?
If you find you’ve made non-concessional contributions which exceed the non-concessional cap, the ATO will send you a letter which explains your options. It's important to wait until you receive your letter and speak to the ATO.
Keep track of the amount of non-concessional contributions you, your employer or others make on your behalf and be aware of your non-concessional contributions cap.
Work test
You no longer need to meet the work test or work test exemption to make or receive non-concessional super contributions.
However, to make personal (tax-deductible) contributions, you will need to meet the work test if you’re 67 to 74 years old. This means you’ll need to have worked for at least 40 hours in a period of not more than 30 consecutive days in a financial year.
Want to know more?
For more information on after-tax contributions, visit the ATO website here.