Superannuation rules and jargon can be confusing at the best of times. Some even involve time travel, like the bring-forward and carry-forward rules.
But don’t let the mind-bending jargon put you off because understanding these rules can help build your super balance, reduce tax and avoid any breaches of contribution caps along the way.
The bring-forward rule deals with non-concessional (after-tax) contributions. It allows you to bring forward future non-concessional contribution caps in a shorter time period.
From 1 July 2021, the annual non-concessional contributions cap is $110,000, up from $100,000 previously. However, if you meet all the eligibility criteria, the bring-forward rules allow you to make non-concessional contributions of up to three times the annual general contributions cap in a single year (3 x $110,000 = $330,000 in 2021-22).