Time Running Out to Use Unused Concessional Contributions
SMSF Members Urged to Act
Key Points:
- Unused concessional contributions from 2019-20 will expire on 30 June 2025
- Eligibility is based on balance being under $500,000 at end of previous financial year (30 June 2024)
- Strategic one-off events (like bonuses or asset sales) can help make the most of this opportunity.
SMSF members who have unused concessional contributions dating back to 2019-20 are being urged to take action before these entitlements expire at the end of this financial year.
The carry-forward rule, introduced in 2018-19, allows individuals with super balances under $500,000 to roll over unused portions of their concessional contributions cap for up to five years. However, unused amounts from 2019-20 will be lost if not used by 30 June 2025.
Superannuation experts are advising members to carefully assess their contribution history and eligibility now, particularly if their balance is close to the $500,000 threshold. Some members may temporarily qualify if their balance dipped due to market movements or benefit payments.
Members who have recently received a bonus, sold an asset or received a trust distribution may find this is an ideal time to make a large personal deductible contribution.
It’s also important for SMSF members to understand that being a non-resident for part of the five-year period does not automatically disqualify them from accessing these unused caps.
ACT NOW If you’re eligible, speak with Intuitive Super’s SMSF Advisers or your Accountant as soon as possible to assess your unused caps and make contributions before 30 June.
Super guarantee increases and upcoming payday super reforms may also affect timing for contributions. That makes it even more important to plan contributions well before the financial year ends.
General advice only. Always seek personalised financial advice before acting.
