Contribution caps expected to stay the same for FY 23–24
While contribution caps are predicted to remain at $27,500 and $110,000 next financial year, an uplift in the transfer balance cap will have an impact on the thresholds for bring forward amounts, says a technical expert.
Speaking in a recent webinar, SuperGuardian education manager Tim Miller said he can “almost guarantee that the contribution caps are not going to index next financial year”.
“So, we’re not going to go from $27,000 up to $30,000. The numbers just aren’t there to support that from an average weekly ordinary time earnings (AWOTE) perspective,” he stated. So we’ll also be still maintaining $110,000, $220,000 and $330,000 as our non-concessional limits at least for another year.”
The contribution caps are indexed in line with the AWOTE figure, which will be released 23 February 2023.
While the contribution caps will very likely remain the same, Mr Miller said that given that the total superannuation balance is linked to the general transfer balance cap, this may open up opportunities for clients that were previously unable to make non-concessional contributions.
He noted that clients with a total super balance of $1.59 million or more are currently restricted from using the bring forward rules. Members will a balance of $1.7 million or more cannot make any non-concessional contributions.
“However, if we get indexation to $1.9 million, then will be able to start talking to clients with less than $1.7 million or $1.68 million about using the entirety of their bring forward amount.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
