My plan this year was to make a $120000 non concessional super contribution and a $30000 concessional super contribution ( total $150000 ).
Unfortunately, I have over contributed by $4000 ( so total now $154000 ). I've been told that I have triggered the 3 year bring forward rule for non concessional contributions and so will not be able to contribute any non concessional monies for the next 3 years. I was hoping I could somehow extract that extra $4000. I've contacted the super fund but they did not offer any way out.
I can't use the catch-up unused concessional contributions as my balance is over the limit.
Has anybody got thoughts on a strategy to reverse that $4000 contribution?
Super Fund Contributions
ramshead on 03/06/2025 - 08:42
Comments
This is a good question.
yes
what's the relevance of this?
I'm just nosy.
Also it determines eligibility.
Nosy and correct. ramshead can't use carry-forward concessional contributions while their balance is over $500,000. I'm not aware of any exceptions though, not being near retirement age, I may have missed them.
@markathome: The 5 year Carry-forward concessional cannot be applied when the balance is over $500,000. But the topic is about the 3 year bring forward non-concessional and that does not have a balance limit.
the 3 year bring forward non-concessional and that does not have a balance limit.
Not correct. The following is from the ATO website:
The amount of the non-concessional contributions cap you can bring forward depends on your total super balance (TSB):
From 1 July 2025, if your TSB (Total Super Balance) on 30 June of the previous financial year was less than $1.76 million – you can contribute 3 times the annual non-concessional contributions cap over 3 years (that is, $360,000). For example, in the 2025–26 financial year, if your TSB on 30 June 2025 was less than $1.76 million, you can contribute 3 times the annual non-concessional contributions cap over 3 years (that is, $360,000).
If your TSB on 30 June of the previous financial year was $1.76 million or above but less than $1.88 million – you can contribute 2 times the annual cap over 2 years (that is, $240,000).
If your TSB on 30 June of the previous financial year was $1.88 million or above – you can't bring forward any amount, but you can make a current year contribution of up to $120,000.
Why are you OzB is my main thought
please tell me the answer is flexin on a bunch of internet randos
A lot people get to this position in life by pinching pennies.
How can you have so much cash and make such careless errors.
inheritance?
Lol get off your high horse, poor
People with more money than you are allowed to get things wrong. That doesn’t necessarily make them “careless”.
Nope, it's just careless.
ok m8
why are you up so early? I thought Centrelink doesn’t open till 10?
@dwarves: They just send the money straight to my account, you don't have to physically go down there and get it, silly.
My understanding from what I've read is that the ATO will contact you once FY is done and ask you to nominate whether to take it out or keep it in.
So you'll be fine, just need to wait a bit.
thanks
No expert but I am not reading the rule working like that. The 3 year bring forward rule has a limit of $360000 over 3 years, not $0.
Yeah, he's brought forward $4000, still plenty available over next 3 years!!??
I've never heard of "you only get one transaction per 3 years" which is what OP seems to be implying??
FIFY: $4000 is/was part of non-concessional contribution.
Con cap: $30K
Non Con cap: $120K
You cannot reverse it back unless you are in the preservation years i.e. >60 y/o, and seems you are not.
https://www.ato.gov.au/individuals-and-families/super-for-in…
Super no good
flex flex baby
…. too cold, too cold….
I feel like you can afford to pay someone for this advice mate
None of these might work for you but worth investigating. I'm not an expert of any sort. Talk to your super.
- If you have $4000 (or more) carry over concessional left over, put in a notice of intent before June 30. You can check your available carry-over on mygov->ATO.
- if you have a partner, see if contribution splitting is an option.
- Put in extra 4000 toward concessional anyway (via notice of intent), ask your Super what happens if you do.
According to the ATO website on Bring-Forward Arrangement, "any amount of the bring-forward cap that's unused in the first year can be used in the remaining 1 or 2 years".
If you have only used $4k of the bring forward cap this year, I am not sure why you can't make further contributions in the next 2 years for the remainder of the cap?
You might want to clarify this with your superfund. I am not sure their advice is correct.
Do you have a link to that quote?
you have only used $4000 of your $360,000 bring forward cap., so technically you can contribute a further $356,000 of non-concessional contributions after 01 July or $236,000 before 01 July with a further $120,000 again after 01 July.
Not sure what you're on about?
you have only used $4000 of your $360,000 bring forward cap., so technically you can contribute a further $356,000 of non-concessional contributions after 01 July or $236,000 before 01 July with a further $120,000 again after 01 July.
Not correct. Contributing the extra $4,000 has activated the NCC bring forward arrangement. This means that OP can contribute up to $236,000 before 30-Jun-25 OR if OP makes no further NCCs this financial year, then OP can contribute up to $236,000 anytime in the the next 2 financial years. If OP contributes $236,000 before 30-Jun-25, then OP can make no further NCCs until 1-Jul-27.
@silverstone2023: I think i am correct
I said he can contribute an extra $236,000 FY25 (as he has already used $124,000) - (ie. up to 30 JUN 2025).
For FY 26, he can do his normal $120,000 for that year + the $236,000 unused amount he has, totaling $356,000 for FY 26.
OP, best to speak to your accountant or an accountant, or better still, check out some of the videos by "The Superguy"
For FY 26, he can do his normal $120,000 for that year + the $236,000 unused amount he has, totaling $356,000 for FY 26.
Only 236k extra from now to 30/06/27 because once the bring forward rule is triggered it's locked for the current and next 2 fy. So next time they can trigger another bring forward rule is 1/7/27
Thank very much for that. Seems to make it clear.
Whirlpool is leaking.
The cancer of the 'right' is metastasising
Ask your super fund. They'll know the rules better, Oz Bargain forum participants. One or two may know, and you may even get a response from an expert, but how do you separate that person from the rest. The other alternative is to phone ATO.
I've contacted my super fund on matters previously and some of their advice was contradictory and on one occasion it was wrong. On this issue they responded with links to info that was very general.
I don't know why some people don't like people using forums to learn rather than whatever else others use them for
I think it's more that they don't understand the concepts being discussed. However, they still want to say something, so they resort to snide remarks.
Simple answer - if you are over the concessional limit and can't take advantage of the carry forward, the ATO will assess you $4k Excess Concessional Contributions, you then basically lose that 4k deduction.
They will give you an option to either pay the tax, or request the ATO to release the 4k. you then lose a bit in tax but get the balance refunded.
Yes I'm hoping that will be the case.
I reckon the simplest strategy is to let the bring forward rule be triggered, and simply contribute 4K less than the total non-concessional contribution limit for the next 2 years, in the next 2 years. It does give some flexibility. So, say if the next 2 years' limits are both 120K, then as long as you contribute no more than 236K in non-concessional contributions in the next 2 years, you will be fine.
Thanks to all who have made thoughtful contributions to this post. Some very good points have been made.
I'll no doubt get a definitive answer shortly after EOFY.I've been told that I have triggered the 3 year bring forward rule for non concessional contributions and so will not be able to contribute any non concessional monies for the next 3 years
Hey buddy went through exact same thing you used up the 24-25 NCC limit and are $4k over which triggers the bring forward rule you still have 240k - 4k = 236k for 25-26 and 26-27 FY before it resets on 1/7/27 provided you lodge an intent to deduct for the 30k super for 24-25 fy which you can do prior to lodging your 24-25 tax return
yep , looks like that. Thanks.
what are you currently investing in the super?
Mate the Whirlpool forums that way >>
Was your balance over $500,000 as at 30 June 2024?