Contribution caps to stay the same for 2023–24 year
Concessional and non-concessional contribution caps are set to stay at $27,500 and $110,000 following the release of the AWOTE figure.
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The concessional contributions cap is indexed in increments of $2,500 based on average weekly ordinary time earnings (AWOTE) figure for the December quarter.
The AWOTE figure released by the Australian Bureau of Statistics (ABS) on Thursday was not high enough for the contribution caps to index this year.
SMSF Alliance principal David Busoli said this means the concessional contribution cap of $27,500 and non-concessional cap of $110,000 will remain unchanged for the 2023–24 income year.
However, with the general transfer balance cap due to index to $1.9 million on 1 July, there will be a shift in the three year bring forward pivot points.
Currently, anyone with a total super balance of more than $1.7 million cannot make non-concessional contributions into super. From 1 July this year, this figure will increase to $1.9 million.
Indexation of the general TBC also means that those with a super balance of less than $1.68 million in super will be able to bring forward three years of non-concessional contributions. Currently only those with less than $1.48 million are able to use the maximum bring forward amount of $330,000, explained Mr Busoli.
Miranda Brownlee
24 February 2023
smsfadviser.com
