What is the SMSF Bring forward rule?
SMSF Bring Forward Rule 2021 What is the SMSF bring forward rule ? This rule allows those under the age of sixty-five to make up to three years worth of non-concessional (after-tax) contributions to their super in a single income year. According to the ATO, you can put up to three times the current $100,000 annual non-concessional contributions cap into your super in one financial year without having to pay extra tax. However, amounts over the non-concessional cap are taxed at 47% for the 2020–21 financial year. Essentially, those who implement the rule are ‘bringing forward’ their next two years of caps into the current year. An employee can make an agreement called Salary Sacrifice. In this, the employee agrees to receive less take-home income from the employer and in return they earn benefits. These benefits are paid out of their pre-tax salary. Benefits can include goods and services like a car, a laptop or contributions to their superannuation account. How does it work? For exa