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  • Super-related measures affected by your total super balance

    Total superannuation balance is relevant when working out eligibility for the following. super-related measures:

    Carry-forward concessional contributions

    From 1 July 2019, if your total super balance is less than $500,000 at the end of 30 June of the previous financial year you may be able to increase your concessional contributions cap.

    To increase your cap, you must both:

    • make concessional contributions in the year over the general concessional contributions cap ($25,000 from 2017–18 to 2020–21; $27,500 from 2021–22)
    • have unused concessional contributions cap amounts for one or more of the previous five years (but not before 2018–19).

    See also:

    Non-concessional contributions cap and the bring-forward of your non-concessional contributions cap

    From 1 July 2017, if your total super balance is below the general transfer balance cap ($1.6 million from 2017–18 to 2020–21; $1.7 million from 2021–22) at 30 June of the previous financial year, you will be eligible for the annual non-concessional contributions cap ($100,000 from 2017–18 to 2020–21; $110,000 from 2021–22).

    You may also be eligible to bring-forward a non-concessional contributions cap of two or three times the annual non-concessional cap, depending on your total super balance and age.

    See also:

    Work test exemption

    From 1 July 2021, if you are aged 67 to 74 years and your total super balance is below $300,000 at the end of the previous year, you can make voluntary super contributions for 12 months from the end of the financial year in which you last met the work test.

    This work test exemption:

    • can only be used in one financial year
    • does not apply to defined benefit funds.

    For 2019–20, the age requirement for this exemption was 65 to 74 years.

    See also:

    Government co-contribution

    From 1 July 2017, in addition to the existing eligibility requirements, you will be eligible for the government co-contribution in a financial year if you meet both these conditions:

    • Your non-concessional contributions do not exceed your non-concessional contributions cap for the relevant financial year.
    • On 30 June of the previous financial year your total super balance is less than the general transfer balance cap ($1.6 million from 2017–18 to 2020–21; $1.7 million from 2021–22) for that financial year.

    See also:

    Spouse tax offset

    From 1 July 2017, there are two additional eligibility requirements you must meet to be entitled to the spouse tax offset:

    • The spouse who is receiving the contribution can't contribute more than their annual non-concessional contributions cap for the relevant year.
    • On 30 June of the previous financial year, your spouse must have a total super balance less than the general transfer balance cap ($1.6 million from 2017–18 to 2020–21; $1.7 million from 2021–22) for that financial year.

    See also:

    Segregated asset method for calculating exempt current pension income

    From 1 July 2017, SMSFs and small APRA funds are not allowed to use the segregated asset method to calculate exempt current pension income (ECPI) if, at any time in the year, the fund has a retirement phase interest and all of the following apply:

    • A member has a total super balance exceeding $1.6 million just before the start of that year.
    • The same member has a super interest in the fund at any time during the year.
    • The same member is receiving a retirement phase income stream just before the start of the year (from the super fund or another provider).

    See also:

    Example: Total super balance

    Andy is 50 years old and earned $35,000 in 2018–19 and 2019–20.

    Andy has two accumulation super accounts with two different super funds.

    In each year:

    • Andy’s employer made $3,500 worth of concessional (before-tax) employer contributions to one of Andy’s super funds
    • Andy made $10,000 of non-concessional (after-tax) personal contributions to one of his super funds.

    In June 2015, Andy received a structured settlement payment of $1,000,000 due to an accident at work. He advised both funds and used this payment to make a structured settlement contribution of $500,000 to each fund.

    Andy's two accumulation super accounts each have an account balance of $700,000 on 30 June 2020.

    Andy does not have a transfer balance account as he is yet to commence an income stream.

    On 30 June 2020, Andy’s total super balance is $400,000. This is worked out as follows:

    • $1,400,000 (total of his accumulation accounts)
    • plus $0 (transfer balance account balance)
    • plus $0 (total rollovers in transit)
    • plus $0 (total LRBA amount)
    • minus $1,000,000 (structured settlement contributions).

    As Andy is under 65 years old and his total super balance at the end of 30 June 2020 is $400,000 this means the following could occur in 2020–21:

    • Concessional contributions – Because Andy's total super balance is less than $500,000, he can carry forward his unused concessional contributions cap amount of $43,000 ($21,500 from both 2018–19 and 2019–20). He also has his annual $25,000 concessional contributions cap. This means Andy can make concessional contributions of up to $68,000 in 2020–21 without exceeding his concessional contributions cap.
    • Non-concessional contributions – Because Andy's total super balance is less than the $1.6 million general transfer balance cap, he can trigger the bring-forward arrangement. As the difference between the general transfer balance cap and his total super balance is more than twice the annual non-concessional contributions cap ($200,000) he can make up to $300,000 in non-concessional contributions (three times the non-concessional cap) without exceeding his 2020–21 non-concessional contributions cap.
    • Government co-contribution – Because Andy's total super balance is less than the $1.6 million general transfer balance cap and his income is $35,000, he will also be entitled to a Government Co-contributions payment for any non-concessional contributions he makes that are less than his non-concessional cap.
    End of example

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      Last modified: 30 Sep 2021QC 19749