By Daniel Shaw

From 1 July 2023, the thresholds in which a superannuation member can make non-concessional (after tax) contributions have been increased due to indexation.

Members who are under 75 with a total superannuation balance (TSB) below $1.9m, can make a non-concessional contribution into their superannuation fund up to the annual cap of $110,000, provided they are not currently in a bring forward arrangement which may change this cap.

A bring forward arrangement allows a member to bring forward two years’ worth of their annual non-concessional contribution cap into the current year. This would mean a total non-concessional contribution of up to $330,000 in the one year.

There are however TSB thresholds that members need to review before making non-concessional contributions, which for the 2023 FY are further explained in the table below:

Total Superannuation Balance (TSB) on 30 June of previous year	Non-concessional contributions cap for the first year	Bring-forward period
Less than $1.68m	$330,000	3 Years
$1.68m – $1.79m	$220,000	2 Years
$1.7m – $1.9m	$110,000	1 Year
$1.9m or more	Nil	Not Applicable

Where a member has commenced their bring forward arrangement in an earlier financial year, they are locked to the TSB thresholds in that year of contribution and should review the relevant thresholds for that financial year.

As a reminder, from 1 July 2022, members wishing to make non-concessional contributions who are between the ages of 67 – 75, no longer have to meet a work test to make the contribution.

For further assistance, please contact our Director and SMSF Specialist Adviser Daniel Shaw, who can assist with your enquiries.

The information provided does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances.