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What is the maximum amount you could contribute to superannuation in any one year?

Looking through all of the super contribution rules if the stars aligned you may be able to contribute $732,500, or $1,465,000 for a couple in one financial year.

This article is very much a hypothetical, a bit of fun to work out the maximum possible contribution thus ignores whether it would be beneficial or not.

To reach this maximum amount would depend on your age, whether you work or not, how much you have previously contributed and the balance of your existing super.

Mostly anyone between the age of 18 and 67 can contribute to super regardless of their working status. They can contribute up to $27,500 as a concessional contribution and a $110,000 as a non-concessional contribution.

If you haven’t previously triggered the bring forward provision, then you are entitled to a $330,000 non-concessional contribution.

On top of this if your Total Super Balance (TSB) is under $500,000 at the end of the previous financial year you are eligible to utilise the carry-forward concessional contribution. This is where you can carry forward any unused amount of the concessional contribution cap over the previous five years starting from 1 July 2018. Theoretically you could then contribute $102,500 as a concessional contribution this financial year. This would likely mean you have not worked over the past five years and no employer contributions have been made.

This brings the total contribution to $432,500.  

If you also meet the eligibility for the downsizer contribution you could contribute $300,000 as this sits outside of the concessional and non-concessional contribution caps, bringing your total contribution up to $732,500 in one year.

The catch is you would need to be between the age of 65 and 67 along with meeting all the other eligibility criteria to access these three contribution types at once.

Interestingly the 2021 May budget proposals would extend this window from age 60 through to age 74 from 1 July 2022 if legislated.

The proposals are for those over 67 but younger than 75 to contribute without the current requirement to meet the work test and to also be allowed access to the bring forward provisions. For the downsizer contribution rule change it is proposed that the eligibility age be brought forward to age 60 down from 65.

DISCLAIMER: 

This is intended to be general advice only. Goldsborough Financial Services has not taken into account the objectives, financial circumstances or investment needs of any particular person.  For specific advice on your situation please contact your Goldsborough Financial Planner.

Sam Martin
Author
Certified Financial Planner® | Authorised Representative No. 252676

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