Review contribution types and amounts to ensure contributions have been optimised.
Contribution caps for 2022-23
- non-concessional: $110,000 (unchanged from 2021-22), provided the client’s total superannuation balance (TSB) was less than $1.7 million as at 30 June 2022 (also unchanged). Access to the non-concessional contribution (NCC) bring-forward rule also depends on the client’s TSB as at 30 June 2022.
TSB | NCC cap |
Less than $1.48 million | $330,000 over three years |
$1.48 million to less than $1.59 million | $220,000 over two years |
$1.59 million to less than $1.7 million | $110,000 annual cap
(Bring forward not available) |
$1.7 million or more | Nil NCC cap |
If the bring-forward cap is triggered, but not used in full in the 2022-23 year, the remaining cap can only be used in the 2023-24 year where the individual’s TSB is less than $1.9 million at 30 June 2023.
- concessional: $27,500 (unchanged from 2021-22) unless the individual carries forward their unused concessional contribution (CC) cap.
The carry-forward CC cap is applied if:
- actual CCs are greater than the annual CC cap
- TSB is less than $500,000 at 30 June of prior financial year (ie 30 June 2022 for contributions made in the 2022-23 year), and
- they have unused CC cap available from any or all of prior 5 years (occurring from 2018-19 onwards).
small business CGT concession cap: $1,650,000 (lifetime limit).
Tips
- Check whether the client may have any unused CC cap amounts they can use in the current year
In many cases, it will make sense for a client to use these amounts, but not always.
A client who has an unusual boost in their assessable income (for example due to a net capital gain) may benefit from using their carry-forward CC cap to take advantage of tax concessions. However, if their additional CCs will be subject to Division 293 tax (due to the income boost) when this wouldn’t ordinarily be the case, then they may be better off waiting until the following income year. Of course, other factors need to be considered too, including whether the client’s TSB will likely remain within the $500,000 threshold to be eligible to make use of the carry-forward cap.
Also note that unused CC cap amounts can be carried forward for a maximum of 5 years. We are now approaching the last point at which the earliest carry forward CC cap can be contributed. For example, the last year the unused CC cap from 2018-19 can be used will be the 2023-24 year.
- Check the timing of your clients’ contributions.
- Check the super fund’s cut off dates to ensure contributions are received in the intended year. Cut off dates for Macquarie products can be found here
- Contributions received by a super fund after 30 June 2023 will generally count towards the contributions cap in the 2023-24 financial year, even if they relate to 2022-23. This may impact the client’s contributions caps for next financial year.
- For Superannuation Guarantee (SG) contributions, employers have until 28 July 2023 to make contributions for the quarter ending 30 June 2023.
- A non-concessional contribution can only be accepted up until the 28th day after the month the individual turns 75.
- Check the contributions made into all of your clients’ super funds to ensure the relevant caps have not been exceeded.
- Check the classification of the contributions. Contributions not made by the member themselves (excluding spouse contributions and non-employer contributions made for a child) are treated as concessional contributions and count towards the concessional contributions cap. However, contributions made by an employer from the take-home (after-tax) pay of the client are considered by the ATO to be non-concessional contributions.
Further help