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Key tax and superannuation thresholds

Contributions caps

Section: 3.4

Concessional contributions cap

Income year Amount of cap
2017/18 $25,0001

1. Applies for any age

Unused concessional cap carry forward

From 1 July 2018, an individual who has a total superannuation balance of less than $500,000 on 30 June of the previous financial year is entitled to contribute more than the general concessional contributions cap amount by making additional concessional contributions using any unused amounts from an earlier year.

The first year of entitlement to the carry forward unused amounts is the 2019/20 financial year. Unused amounts are available for a maximum of five years, and will expire after this period.

Unused concessional cap carry forward*

  2017/18 2018/19 2019/20 2020/21 2021/22
General contributions cap $25,000 $25,000 $25,000 $25,000 $25,000
Total unused available cap accrued NA $0 $22,000 $44,000 $69,000
Maximum cap available $25,000 $25,000 $47,000 $25,000 $94,000
Superannuation balance 30 June prior year NA $480,000 $490,000 $505,000 $490,000
Concessional contributions $0 $3,000 $3,000 $0 $0
Unused concessional cap amount accrued in the relevant financial year $0 $22,000 $22,000 $25,000 $25,000

* This table assumes there is no indexation increase to the general concessional contributions cap

Non-concessional contributions cap

Income year Amount of cap*
2017/18 $100,000

* The non-concessional contributions cap amount is determined by reference to the concessional contributions cap amount, based on:

  • for 2017/18 and later years - four times the general concessional contributions cap amount for the year ($25,000 in 2017/18)
  • for 2009/10 to 2016/17 years - six times the general concessional contributions cap amount for the year ($30,000 in 2016/17).

Bring forward arrangement

A "bring forward" arrangement allows a person who is under 65 years of age in a financial year (Year 1, the trigger year) to have an amount of three times the Year 1 cap amount as his/her non-concessional contributions cap over a three-year period (ie Years 1, 2 and 3). For example, a person below age 65 in the 2015/16 financial year can have a cap amount of $540,000 for non-concessional contributions made in the 2015/16 to 2017/18 years. The bring forward rule is triggered automatically when contributions in excess of the annual cap are made in a financial year by a person who is under age 65 at any time in the year. The bring forward limit across the three-year period is three times the annual cap amount in the trigger year and is not affected by any indexation increase of the annual cap amount (if any) over that period.

Operation of bring forward cap

Financial year Cap amount
1 (first year) Three times the non-concessional contributions cap of that year (eg $540,000 in 2015/16, as the non-concessional contributions cap is $180,000)
2 (second year) The first-year bring forward cap amount minus first-year non-concessional contributions (but not less than $0)
3 (third year) The second-year bring forward cap amount minus second-year non-concessional contributions (but not less than $0)

Bring forward cap rule from 1 July 2017 - transitional periods

From 1 July 2017, the bring forward amount and period depends on a taxpayer's total superannuation balance on the day before the financial year in which the contributions triggered the bring forward.

Transitional period arrangements apply if a taxpayer has triggered a bring forward in either the 2015/16 or 2016/17 financial years. If the taxpayer triggered a bring forward before 1 July 2017 and has not fully utilised the bring forward cap before 1 July 2017, the taxpayer's bring forward cap is re-assessed on 1 July 2017 to reflect the annual non-concessional contributions cap ($100,000 in 2017/18).

During the two transitional periods (2015/16 to 2017/18 - see Row 2; 2016/17 to 2018/19 - see Row 3) in the following table, contributions made before 1 July 2017 will affect the taxpayer's total non-concessional contributions capacity over the following two years.

  2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
non-concessional contributions cap $180,000 $180,000 $180,000 $100,000 $100,000 $100,000
1 $0 to $540,000      
2   $0 o $460,000    
3     $0 to $380,000  
4       $0 to $300,000

CGT cap amount

A CGT cap (a lifetime limit for each taxpayer) operates in conjunction with the non-concessional contributions tax regime under which certain contributions are counted towards the CGT cap, rather than the normal non-concessional contributions cap.

Income year Cap amount
2017/18 $1.445m

Last modified: Friday, January 12, 2018