From 1 July 2018, if you have a total super balance of less than $500,000 on the previous 30 June and you make or receive concessional contributions of less than the concessional contributions cap of $25,000 pa, you may be able to accrue unused amounts for use in subsequent financial years.
2018/2019 is the first financial year you can carry forward unused cap amounts and these amounts can be used from 1 July 2019. So the 2019/20 year is the first time these unused cap amounts can be used. The unused amount from each year can be carried forward for up to five years.
Before this change to the law, the concessional operated on a year-by-year basis – any unused amounts from a previous year could not be carried forward and used in subsequent years. You either used it, or you would lose it!
Want to learn more about managing your business? Have a look at our How To’s or read more of our latest Blog Posts.
Michael McAullay(https://www.helmaccounting.com.au)