The first opportunity members of super funds have to make use of this new provision, is the 2019/20 financial year.
Here are the rules:
- To access potential unused concessional contributions from prior years, you must have a total super balance of less than $500,000 at 30 June of the preceding financial year.
- Unused concessional contributions carry forward for a maximum of five years and then are lost
- The first year that unused contributions start accruing is 2018/19
- The first year that a member can access unused concessional contributions in 2019/20.
Consider this example.
This article is a factual description of legislation current at the date of publication (August 2020), it should not be construed as financial advice. If you have any queries about how these contribution provisions work, please do not hesitate to contact an expert at Aquila Super.