Commonwealth Numbered Acts Commonwealth Numbered 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.