What You Need to Know About Carry-Forward Unused Concessional Contributions

If you want to boost your retirement savings, you may be eligible to make a carry-forward super contribution. However, many people overlook this opportunity since they do not know about it and miss out on the opportunity.  

If you want to build your retirement savings, talk to a financial planner in Perth from Precept Financial Services. A financial planner can help you manage your finances and achieve financial freedom and security.

Also read: How to Choose A Financial Planner For Retirement?

Here is what you need to know about carry-forward unused concessional contributions: 

What Are Carry-Forward Unused Concessional Contributions?

Carry-forward contributions allow super fund members to boost their concessional contributions with extra contributions above the usual annual limits. Therefore, the super fund members can make concessional contributions higher than the concessional contributions cap. And they do not even have to pay more money in taxes. You can “carry forward” up to 5 financial years’ worth of unused contributions.  

Who Is Eligible?

You must meet two conditions to be eligible: 

Firstly, at the end of the previous financial year, which is 30th June, your Total Super Balance must be under $500,000. 

Secondly, you need to have made the concessional contributions during the financial year. And the concessional contributions you made need to exceed your concessional contributions cap. 

Want to know if you are eligible? It is helpful to talk to your tax accountant or financial planner. They can help you know if you are eligible. 

What Are the Benefits/Advantages?

Boost Your Retirement Savings 

The purpose of the carry-forward contributions is to help people boost their retirement savings by contributing above the usual limits. 

Reduce Your Tax Bill  

If you have a larger income in a financial year or a capital gain from the sale of investments or property then you may be able to make use of the unused concessional contributions cap to reduce your taxable income and resulting tax.   

Where to get started?

You can use carry-forward unused concessional contributions to boost your retirement savings. However, it is difficult for most people to understand if they are eligible. Therefore, you will need to seek professional advice. 

If you are in Perth, Western Australia and you are looking for a financial planner to help you to determine if you are eligible, do not hesitate to contact Precept Financial Services. They can help you secure your finances and boost your retirement savings.

Source – https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions—too-much-can-mean-extra-tax/?page=6    

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Please see our Financial Services Guide for more information.

Precept Financial Services Pty Ltd (ACN 140 538 147) as trustee for SF Unit Trust trading as Precept Financial Services is an authorised representative and credit representative of Charter Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee No. 234665

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