Using the bring forward rule (also referred to as the bring forward arrangement) allows you to boost your super contributions, specifically your bring forward non-concessional contributions, in a more compressed timeframe. There are specific guidelines related to age, previous non-concessional contributions, and the amount already in your super balance, often referred to as the transfer balance cap. These criteria determine your eligibility to leverage the bring forward rule.

Understanding these rules is crucial to prevent over-contributing, known as excess contributions, which could result in additional tax.

Understanding non-concessional contributions caps in FY 2025

From 1 July 2024, the non-concessional contributions cap is $120,000. This is the maximum amount of after-tax contributions you can add to your super each year without paying extra tax. This amount is reviewed annually to align with Average Weekly Ordinary Time Earnings (AWOTE). If you contribute more than the cap, you may have to pay extra tax.

Here's a list of the non-concessional cap amounts since the 2018 financial year:

If you make contributions above the annual non-concessional contributions cap you may be eligible to automatically access future year caps. This is known as the bring-forward arrangement. It allows you to make extra non-concessional contributions without having to pay extra tax, if you meet certain eligibility conditions. If your total super balance is equal to or more than the general transfer balance cap ($1.7 million from 2021–22, $1.9 million from 2023–24) at the end of the previous financial year, your non-concessional contributions cap is nil ($0) for the current financial year.

Read our article "Non-Concessional Super Contributions" to learn more.

Understanding the differences: carry forward rule vs. bring forward rule

Both the carry forward rule and the bring forward rule pertain to superannuation contributions, but they cater to different kinds of contributions and operate distinctively.

The carry forward rule is linked to concessional (or before-tax) contributions. If your total super balance is under $500,000, this rule lets you carry over the unused concessional contributions cap on a five-year rolling basis. Essentially, if you don't max out your concessional contributions cap in a specific year, you have the option to roll over the unused portion and apply it in an upcoming year.

Conversely, the bring forward rule deals with non-concessional (or after-tax) contributions. This rule allows individuals below 75 years of age to make a large contribution in one year by advancing their cap from the succeeding two years. This translates to the ability to contribute threefold the yearly non-concessional contributions cap within a single year.

To sum it up, the carry forward rule allows you to roll over unused concessional contribution limits to future years, while the bring forward rule permits you to pre-use your upcoming non-concessional contribution caps.

In summary, the bring forward rule is beneficial for individuals like Jane who are looking to maximise their super contributions in a tax-effective manner, especially as they near retirement and have access to larger sums of money to invest.

Read our article Understanding the Maximum Super Contributions to learn more.

Eligibility and considerations for the bring forward rule

Age eligibility

To use the bring forward rule, a person needs to be younger than 75 years old on the previous 1st of July. Also, any Non-Concessional Contributions (NCC) should be made within 28 days after the month they turn 75.

Additional contributions during a bring-forward period

During the second year (or third year, if applicable) of the bring-forward period, your Total Super Balance (TSB) needs to be under the general Transfer Balance Cap (TBC) as of the 30 June of the previous financial year for you to make extra Non-Concessional Contributions (NCCs). An interesting point to note is that you can still contribute the remaining amount from their NCC bring-forward, even if this makes your TSB go over the general TBC afterward. That's because the main condition is for the TSB to have been below the general TBC on the last 30 June to add more NCCs within the bring-forward limit.

About indexation

If the yearly NCC cap goes up because of indexation, it doesn't mean someone can contribute more under a bring-forward period they already started. This is because the bring-forward NCC limit is set by doubling (or tripling) the yearly cap from the year it began.

There could be new chances to contribute in 2023/24 for those who began the 3-year bring-forward in 2021/22 but couldn't use the full amount in 2022/23. This situation could happen if your TSB on 30 June 2022 was at or above the general TBC (which was $1.7m in 2022/23). Since the general TBC will rise to $1.9m in 2023/24, you could contribute more if your TSB on 30 June 2023 was less than $1.9m.

Managing and overseeing the bring-forward rule: who's responsible?

The ATO is in charge of handling contribution data, which includes details about the bring-forward rule. Super fund trustees don't have to decide if a contribution is allowed. However, they do report personal contributions to the ATO. If someone makes a Non-Concessional Contribution (NCC) that goes beyond the set limit based on caps and their Total Super Balance (TSB), this becomes an excess NCC. In such a case, the ATO will notify the client with an excess notice of assessment.

Individuals can view their contribution and bring-forward details by logging into myGov. From there, they can download a report to either print or email to their financial adviser. However, it's essential to be cautious when using this information. It might not show the current TSB because of how long it takes funds to report. The smartest approach would be to keep thorough records and double-check with all of the client's funds to ensure the information is accurate.

How your total super balance determines your bring-forward cap

From 1 July 2024, your ability to bring forward non-concessional contributions depends on your Total Super Balance (TSB) as of 30 June of the previous financial year:

• If your TSB is under $1.66 million, you can use the bring forward rule to contribute up to $360,000 over three years. For instance, if your TSB on 30 June 2024 is below $1.66 million, you can contribute three times the annual non-concessional contributions cap over the next three years.
• If your TSB is between $1.66 million and $1.78 million, you can bring forward up to $240,000 over two years.
• If your TSB is $1.78 million or more, you can only make a current year contribution up to $120,000.

These limits assume the non-concessional contributions cap is $120,000 from 1 July 2024, and the general transfer balance cap is $1.9 million.

Upon activating the bring-forward rule:

• Any subsequent adjustments to the non-concessional cap during the bring-forward period won't affect you. The total amount you can contribute during this time is fixed based on the cap from the year the bring-forward started.
• Your contributions in the subsequent 1 or 2 years cannot exceed your remaining bring-forward amount. For example, if you contributed the maximum in the first year, your cap would be zero for the next two years.

Starting from the 2017–18 financial year, if your TSB equals or surpasses the general transfer balance cap by the end of 30 June of the preceding year, the remaining cap for the second or third year of the bring-forward period drops to zero.

Important note

To avoid unintentionally setting off the bring-forward rule, consider all non-concessional contributions made to all your super funds. Additionally, unreleased excess concessional contributions count towards the non-concessional cap.

The tables below summarise the bring-forward caps that apply in the first year, based on your total super balance.

Navigating your bring-forward arrangement

If you're thinking about adding a big amount to your super, it's important to first check your ATO online services account to see if you've started a bring-forward arrangement.

To do this: log in to ATO online services, click on "Super," then go to "Information," and finally select "Bring-forward arrangement."

However, keep in mind the most recent data might not always be available on ATO online services because of how long it takes funds, especially SMSFs, to report. For the latest updates, it's a good idea to reach out to your super fund.