Treasury confirms further details on new NCC bring forward cap

Treasury confirms further details on new NCC bring forward cap

Treasury has confirmed details regarding the operation of the bring forward rule in relation to new $100,000 non-concessional caps announced last week.

DBA Lawyers director Bryce Figot told SMSF Adviser that Treasury has confirmed that SMSFs that trigger the non-concessional contribution bring forward rule this financial year, and do not utilise the full bring forward amount before 1 July 2017, will no longer be able to utilise the full $540,000 cap.

Mr Figot said from 1 July 2017 any NCC contributions made under the bring forward rule will be based on the proposed 2017-18 non-concessional caps of $100,000.

“If an SMSF triggered the NCC bring forward rule this financial year with a $250,000 non-concessional contribution and did not make another contribution before 1 July 2017, they could only contribute $130,000 as a non-concessional contribution in the 2017-18 financial year.

Mr Figot stressed the importance of advising clients to utilise the bring forward rule, if they can, before the caps reduce.

“I suspect we will see a flurry of activity of people wanting to max out their non-concessional caps before 1 July 2017.”

 

Treasury confirms further details on new NCC bring forward cap
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