Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Subsection 280 - 15(1)
Omit "This limit takes the form of a tax on excessive contributions, and neutralises the favourable tax treatment arising from the excessive contributions . " .
2 At the end of subsection 280 - 15(2)
Add "Unused cap can be carried forward for 5 years . " .
3 Section 291 - 1
After:
There is a cap on the amount of superannuation contributions that may receive concessional tax treatment for an individual in a financial year .
insert:
You can carry forward unused concessional contributions cap from the previous 5 financial years and use it to increase your cap in a later financial year (unless your total superannuation balance exceeds $500,000) .
4 At the end of section 291 - 20
Add:
Five year carry forward of unused concessional contributions cap
(3) However, your concessional contributions cap for the * financial year is increased in accordance with subsection ( 4) if:
(a) your * concessional contributions for the year would otherwise exceed your concessional contributions cap for the year; and
(b) your * total superannuation balance just before the start of the financial year is less than $500,000; and
(c) you have previously unapplied * unused concessional contributions cap for one or more of the previous 5 financial years .
(4) Apply your unapplied * unused concessional contributions cap for each of the previous 5 * financial years to increase your * concessional contributions cap (but not by more than the excess from paragraph ( 3)(a)) .
(5) For the purposes of increasing your * concessional contributions cap under subsection ( 4), apply amounts of * unused concessional contributions cap for previous * financial years in order from the earliest year to the most recent year .
Your unused concessional contributions cap
(6) You have unused concessional contributions cap for a * financial year if the amount of your * concessional contributions for the year falls short of your * concessional contributions cap for the year . The amount of the unused concessional contributions cap is the amount of the shortfall .
(7) However, you do not have unused concessional contributions cap for a * financial year earlier than the 2018 - 2019 financial year .
5 Application
The amendments made by this Schedule apply in relation to working out your concessional contributions cap for the 2019 - 2020 financial year and later financial years .