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Trustees still puzzled by transitional bring forward rules

Trustees still puzzled by transitional bring forward rules

Puzzled, questions
Miranda Brownlee
02 January 2018

SMSF trustees in some cases are still trying to contribute up to $540,000 in non-concessional contributions where they only triggered the bring-forward rule in 2016-17, says a technical expert.

Australian Executor Trustees senior technical services manager Julie Steed said while everyone is pretty clear on the fact that the maximum non-concessional contributions cap is $300,000 where the three-year bring-forward was triggered from 1 July 2017, it’s the earlier years where there’s still confusion.

“For members who triggered it in 2014-15, 2015-16 or 2016-17 financial years, there’s a lack of understanding of how those transitional provisions work,” Ms Steed said.

There’s a lot more to it than what people think in some instances, she said, so it’s important that practitioners sit down and look at every individual case they’ve got.

“We’ve already seen instances where people have triggered the three-year bring-forward rule for the 2016-17 year, and have contributed $400,000 and they think because they triggered it in 2016-17 that they can put up to the $540,000, and it’s clear that they can’t,” she said.

“There are other areas of confusion for previous years as well.”

Trustees still puzzled by transitional bring forward rules
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