Superannuation : After Tax contributions

[Gunnerguy]

Hi Brains trust ..... a quick Super question.

I have (hopefully) a good understanding of Superannuation however I couldn't find a definitive answer in my Finance text books or online to this question.

Are there any consequences if one makes the 3 year 'bring forward', after tax / none concessional contributions (3 x $120,000) and then subsequently moves to pension phase (upon reaching preservation age) within the 'bring forward' time frame ?

For example what happens if I make a 'bring forward' none concessional contribution this May 2025 covering FY24/25, FY25/26, and FY27/28, totaling $360,000, and then attain preservation age in December 2025 and move my Super to pension phase. Can this be done ? Theoretically one has already 'contributed' to Super for FY27/28 when ones Super is/will be in pension phase.

Any ideas if this can be done.

Thanks,
Gunnerguy

 

[rolly1]

Hi Brains trust ..... a quick Super question.

I have (hopefully) a good understanding of Superannuation however I couldn't find a definitive answer in my Finance text books or online to this question.

Are there any consequences if one makes the 3 year 'bring forward', after tax / none concessional contributions (3 x $120,000) and then subsequently moves to pension phase (upon reaching preservation age) within the 'bring forward' time frame ?

For example what happens if I make a 'bring forward' none concessional contribution this May 2025 covering FY24/25, FY25/26, and FY27/28, totaling $360,000, and then attain preservation age in December 2025 and move my Super to pension phase. Can this be done ? Theoretically one has already 'contributed' to Super for FY27/28 when ones Super is/will be in pension phase.

Any ideas if this can be done.

Thanks,
Gunnerguy

So long as your balance is under $1.9 mil, I would think yes, but I'm not an expert.

 

[Dona Ferentes]

I don't see the two actions as linked.

I use an expert accountant

 

[sptrawler]

So long as your balance is under $1.9 mil, I would think yes, but I'm not an expert.

I think the lifetime cap moves to $2m on July 1st.
Do your own research, as I'm going off memory.

 

[sptrawler]

I don't see the two actions as linked.

I use an expert accountant

I agree with you Dona, once the funds are moved into pension phase, the funds are crystalised into taxable and taxed components, the bring forward rule only applies to future contributions, again from memory and as usual do your research.

As you say Dona, use an expert accountant, it is the member who takes responsibilty

 

[Dona Ferentes]

As you say Dona, use an expert accountant, it is the member who takes responsibilty

and the member carries the consequences if they get it wrong.

 

[frugal.rock]

I use an expert accountant

My accountant is lousy.
She's asking me about shares that consolidated in 2022 etc and where are they etc
I told her she was digging skeletons out of the closet. I haven't heard back in weeks!

Yes, definitely a question for an expert superannuation accountant or the horses mouth directly...the ATO

 

[Ferret]

Are there any consequences if one makes the 3 year 'bring forward', after tax / none concessional contributions (3 x $120,000) and then subsequently moves to pension phase (upon reaching preservation age) within the 'bring forward' time frame ?

No problem at all.

My wife did this last year. Turned 60 in April, contributed using the 3 year bring forward in July, transferred the super to pension phase in August.

 

[Value Collector]

Hi Brains trust ..... a quick Super question.

I have (hopefully) a good understanding of Superannuation however I couldn't find a definitive answer in my Finance text books or online to this question.

Are there any consequences if one makes the 3 year 'bring forward', after tax / none concessional contributions (3 x $120,000) and then subsequently moves to pension phase (upon reaching preservation age) within the 'bring forward' time frame ?

For example what happens if I make a 'bring forward' none concessional contribution this May 2025 covering FY24/25, FY25/26, and FY27/28, totaling $360,000, and then attain preservation age in December 2025 and move my Super to pension phase. Can this be done ? Theoretically one has already 'contributed' to Super for FY27/28 when ones Super is/will be in pension phase.

Any ideas if this can be done.

Thanks,
Gunnerguy

I don’t think it’s a probable at all,

 

[RikFever]

As long as you meet the conditions for contributing funds, aka don't go over limits, and you meet age/working requirements for adding to your super, you are a OK. Subject to the max amount $1.9 to 2mil
Call your fund for confirmation; you don't need an accountant as these are post-tax dollars you are adding.

 

[Sir Burr]

Can This Be Done?
Yes, it is possible to make a $360,000 bring-forward NCC in May 2025 and then transition to pension phase in December 2025, provided you meet the eligibility criteria for both actions. The bring-forward rule and the transition to pension phase are separate processes, and moving to pension phase does not inherently conflict with having triggered the bring-forward rule. However, there are specific rules and consequences to consider.
Steps and Considerations:

1. Making the $360,000 NCC in May 2025:
   • Eligibility:
     • You must be under 75 in FY 2024–25 (i.e., before 1 July 2025).
     • Your TSB on 30 June 2024 must be less than $1.66 million to access the full 3-year bring-forward cap of $360,000.
     • You must not have already triggered a bring-forward period in the previous two years (e.g., FY 2022–23 or FY 2023–24) that is still active, as you can only have one bring-forward period at a time.
   • Process:
     • Contribute $360,000 to your super fund’s accumulation account in May 2025. This triggers the bring-forward rule, using up your NCC cap for FY 2024–25, FY 2025–26, and FY 2026–27 ($120,000 × 3).
     • The contribution is not taxed upon entering the super fund (as it’s after-tax money), and it counts toward your TSB.
   • Consequence:
     • You cannot make additional NCCs until the bring-forward period ends on 30 June 2027. If you attempt to contribute more NCCs before 1 July 2027, you will exceed your NCC cap, triggering excess contributions tax (taxed at the highest marginal rate, currently 47% including Medicare levy).
     • Check with your super fund to ensure they can accept the contribution, as some funds have administrative or age-related restrictions.

 

[DaveTrade]

Are there any consequences if one makes the 3 year 'bring forward', after tax / none concessional contributions (3 x $120,000) and then subsequently moves to pension phase (upon reaching preservation age) within the 'bring forward' time frame ?

Hi @Gunnerguy , my understanding about the way the 'bring forward' rule is viewed is that at the time that the rule was actioned the intension was to stay in Accumulation phase for 3 years, BUT, it's OK if you change your mind before the 3 year period is finished. So the result is what @Dona Ferentes said, the two are not linked.

 

[farmerge]

My accountant is lousy.
She's asking me about shares that consolidated in 2022 etc and where are they etc
I told her she was digging skeletons out of the closet. I haven't heard back in weeks!

Yes, definitely a question for an expert superannuation accountant or the horses mouth directly...the ATO

@frugal.rock Perhaps a handy time to change to a new and perhaps a more knowledgeable bean counter!!!!