As you will be aware, for those with super balances below $500k on the 30th June, it is often possible to utilise any spare concesssional contribution caps you have had in the past five years. This allows you to put more into super and save tax in the process by reducing your taxable income.

Due to the rolling 5 year time frame, any unused concessional contribution cap amounts from 2018/19 will be lost if not used before 30 June 2024. Oldest caps are automatically used first.

In order to utilise the look back rules you need to have concessional contributions of more than $27,500 in the 2024 year. i.e. the use of prior year caps is not triggered if you do not use the current year cap in full. You need taxable income, be under age 75 and pass the work test if over age 67.

Concessional contributions include SGC from your employer, salary sacrifice and personal contributions that are claimed as a tax deduction. Contributions are counted in the year that they are physically received by the superfund.

If you would like to explore this potential tax saving in more detail please get in touch.

Lindsay 0413 952 180