So How Much Can I Contribute to my SMSF Using the Bring Forward Rule


3 Year Bring Forward Rule

So in the last budget, the government has announced the revised changes to the age limits for Non-Concessional Contributions from 1 July 2022, allowing them to age 75 without having to meet the work test. Now to explore in more detail the actual workings of the new Non-Concessional contributions rules and the “Bring Forward Rule” which allows lump sums to be contributed by bringing forward 2 future years of the non-concessional contribution cap to the current year.

So this year, if you are under 75, you can still use the bring-forward rule to contribute the full $330,000.  Note that you may also have already triggered that rule in one of the 2 previous financial years and be wondering how much of the cap you have remaining.

So for example;

If an SMSF member triggered the Non-Concessional Cap bring forward rule last financial year 2021-22 with a $200,000 non-concessional contribution, they could only contribute a maximum of $130,000 as a non-concessional contribution across the 2022-23 or 2023-24 financial years.

$1.7 million eligibility threshold and how it affects the 3 bring forward rule for contributions 

From 1 July 2017 another rule has applied that affects NCC contributions. Individuals are unable to make further NCCs where their, now indexed, Total Superannuation Balance (TSB) is $1.7 million or more (tested at 30 June of the previous financial year) across all Superannuation accounts not just their SMSF. Where an individual’s balance is close to $1.7 million, they can only make a contribution or use the bring forward to take their balance to $1.7 million but not beyond.

TSB on 30 June  of prior financial year Contribution and bring-forward available
Less than $1.48m 3 years ($330,000)
$1.48m to < $1.59m 2 years ($220,000)
$1.59m to < $1.7m 1 year ($110,000, no bring-forward available)
$1.7m and above Ni

What should you do now

If you are considering making a contribution this year then I strongly recommend that you track your previous 2 years’ contributions by checking your eligibility via your MyGov App -> ATO service -> Super Tab -> Information -> Bring Forward Arrangement and using the above tables to assess how much you have contributed and how much you can now still contribute under the new rules.

Bring Forward Arrangements

I hope this guidance has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, like on Facebook etc to make sure we get the news out there. As always please contact me if you want to look at your own options. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

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Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

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This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

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