Two flexible ways to maximise your contributions

A quick guide to the carry-forward rule and bring-forward arrangement

29 September 2021

Giving your super a boost with additional contributions can be a tax-effective way to grow your retirement savings.

There are limits to how much you can pay into your super. The annual contribution cap is good for people with regular incomes, but not so good for people who are taking time off work or have a fluctuating income – they could be missing the opportunity to maximise their contributions.

Similarly, some people who are nearing retirement or have finished paying off a mortgage or debt may want to start paying a little more into their super. Their saving plans could be limited by the annual cap.

To help overcome the constraints of an annual cap, there are two options that give you more flexibility on when and how you make additional contributions.

Carry-forward rules

The carry-forward rules can help you grow your super with more concessional (before tax) contributions.

These are contributions made before your income is taxed, such as compulsory employer contributions and salary sacrificing. They are taxed at 15%, which for most people tends to be lower than their marginal rate.

For 2021/22, the concessional contributions cap for everyone regardless of age is $27,500 (up from the $25,000 cap in recent years). Any unused concessional contribution cap amounts from previous years (going back to 2018/19 financial year) can be carried forward into the following year.

A carried forward amount will expire after five years. To be eligible, your total super balance had to be less than $500,000 at the end of the previous financial year.

Refer to Australian Taxation Office (ATO) website for further information.

Bring-forward arrangement

The bring-forward arrangement can help you make more non-concessional (after tax) contributions into your super.

These are contributions using your money that has already been taxed. These contributions are not taxed when they enter your account. Your total super balance must be less than $1.7m to be eligible to make this type of contribution.

Non-concessional contributions are capped at $110,000 per financial year. Eligible individuals aged under 67 years can make up to three years’ worth of non-concessional contributions in a single year – which for 2021/22 could be up to $330,000.

If an individual triggered a bring forward arrangement prior to 1 July 2021, the three-year’s worth of non-concessional contributions remains at the previous cap of $300,000.

Refer to the ATO website for details about eligibility.

Further information

Further information is available in these two info sheets:

• Contribution caps
• Ways to grow your super

During the financial year, we recommend you check that you are staying under your contribution caps.

The quickest and easiest way to check your contribution caps is to log in to Member Online. Your account will display your contribution totals and caps for the financial year.

We’re here to help

Our team of superannuation specialists and financial advisers can also help you discover the best way to grow your savings.

We offer our members Super Health Check appointments over the phone or video call, at no additional cost. We look at your superannuation account, discuss different ways to grow it, and check that you are on track for a comfortable retirement.

Our financial advice service* can help you plan for a better financial future. LGIAsuper members can receive limited advice on a single topic related to superannuation, at no additional cost. More comprehensive financial advice is also available, and fees will vary depending on the type and complexity of advice.

Call us on 1800 444 396 to discuss the type of appointment that would suit you best.