A strategic way to grow your wealth in a tax-effective environment
If you’re in a position to contribute more to super and want to take full advantage of the low-tax environment it offers, the bring-forward non-concessional contribution rule can be a powerful strategy.
At q4 financial, we help clients use the rules to their advantage — and this one can make a significant difference to your long-term retirement savings.
What is a non-concessional contribution?
Non-concessional contributions (NCCs) are contributions you make to super from after-tax money — such as your savings, an inheritance, or proceeds from the sale of an asset.
You don’t claim a tax deduction for these contributions, but the main benefit is that any earnings on the funds inside super are generally taxed at just 15% during accumulation and 0% in retirement.
How does the bring-forward rule work?
Normally, you can contribute up to $120,000 per year in non-concessional contributions (FY25 cap).
The bring-forward rule allows you to contribute up to three years’ worth of NCCs in a single year — up to $360,000 — provided you meet the eligibility criteria. Once triggered, you can’t make further NCCs for the following two financial years.
This strategy is ideal if you have a larger lump sum you’d like to invest in super all at once, giving your money more time to grow in a concessional tax environment.
Why consider this strategy?
Accelerate your retirement savings
Super is one of the most tax-effective places to build long-term wealth. Making a large contribution upfront means more funds are working for you sooner.
Put windfalls to work
If you’ve sold an asset or received an inheritance, the bring-forward rule allows you to invest a significant amount directly into super, rather than holding it in a personal account where earnings are taxed at your marginal rate.
Improve estate planning outcomes
Super can be an effective tool for passing wealth to beneficiaries in a tax-efficient way. Larger contributions can help structure your estate plan to suit your family’s future needs.
Maximise the tax benefits of super
Income earned on investments inside super is taxed at a maximum of 15% during your working years and can become tax-free once your balance moves into the retirement phase.
Key eligibility points
- You must be under age 75 (as at 1 July of the financial year in which you make the contribution).
- Your total super balance must be under $1.9 million as at 30 June 2025, this increases to $2 million starting FY26 and will change over time.
- You cannot claim a tax deduction for non-concessional contributions.
- You cannot have triggered the bring-forward rule in the previous two years.
Tip: Even if you’re not working, you may still be eligible to contribute using the bring-forward rule, as long as you meet the age and balance requirements.
Example
Kate, aged 63, sells an investment property and receives $400,000 after costs. She decides to contribute $360,000 of this amount into her superannuation, using the bring-forward rule. Her funds are now invested in a low-tax environment, boosting her retirement savings and providing the potential for tax-free income in retirement.
The importance of planning ahead
It’s essential to plan your contributions carefully. The bring-forward rule is automatically triggered when you exceed the standard annual cap, and once triggered, it cannot be reversed. Other contributions you make during the period can also affect your available caps, so professional advice is important to get it right.
How we can help
Taking advantage of the bring-forward rule can be an effective way to build your super and strengthen your financial future. At q4 financial, we work closely with clients to ensure strategies like this align with your personal goals, timeframe and tax situation.
If you’d like to explore how this could fit into your broader plan, we’re here to help you make confident, informed decisions about your wealth and retirement.
Want to find out more smart strategies to grow your superannuation? We’ve created our ‘Super Series’
— a four-part blog collection designed to help you understand and use key strategies to grow your super more effectively.
Part 1: Carry-Forward Super Contributions
A smart way to boost your super and manage your tax effectively
Part 3: Super Splitting: A Smart Wealth Strategy for Couples
A simple way to balance super and plan for a stronger financial future
Part 4: The Spouse Offset: A smart tax strategy for couples
Build wealth together and reduce tax along the way
The information provided in this blog is for general informational purposes only and does not constitute professional advice. While we strive to ensure the accuracy and completeness of the content, we make no guarantees regarding its reliability or applicability to your specific circumstances.
Key Points:
- Not Professional Advice: This blog is not intended to replace professional tax advice. Consult a qualified tax advisor for personalised guidance.
- No Liability: We are not responsible for any errors or omissions, nor for any actions taken based on the information provided.
- Subject to Change: Tax laws and regulations are subject to change. Ensure you are up-to-date with the latest information.
- Personal Circumstances: Individual tax situations vary. The strategies discussed may not be suitable for everyone.
- External Links: Any external links provided are for convenience and do not imply endorsement. We are not responsible for the content of external sites.
