The increasing size of superannuation member balances will make it easier to revisit bring-forward strategies as the total super balance threshold lifts due to rises in the non-concessional contribution (NCC) caps, according to Heffron managing director Meg Heffron.
Speaking at the firm’s recent Super Intensive Day 2025 in Sydney, Heffron stated the increases in changes to the general transfer balance cap (TBC) and the concessional contribution cap, and therefore the NCC cap, would take place at a faster rate as any percentage rise would have an amplified effect on larger balances.
She said these increases created more opportunities to use contribution strategies related to NCCs and noted the difference already apparent between 2021/22 and 2025/26.
“Back then, the TBC was $1.7 million and the NCC was $110,000 and if you had a client that had not done anything in bring forwards in that first year and no contributions beforehand and you took them on in 2022/23, you could be forgiven for saying their next NCC [bring-forward] pattern was say $130,000, then nothing, then $200,000,” she said.
“That adds up to $330,000 if they were doing a three-year bring forward, but we have to do the second step and look at the size of their TSB [of $1.6 million] at the previous 30 June.
“If their super wasn’t low enough to trigger a three-year bring forward, it may only be low enough to trigger a two-year bring forward so their bring-forward period is just two years, which means when we get to 2024/25, they’re starting again.
“Looking at that $200,000, we have to do the same sum again and if they are definitely triggering a bring forward given their TSB at the previous 30 June was $1.65 million.
“What number of years would they trigger as a bring forward? Three. And if we look at 2024/25, 2025/26 and 2026/27, what can they put in? $360,000.
“This highlights that as this person’s balance has got bigger, instinctively you would be thinking their opportunities for bringing forward are surely getting less.
“In fact, several years ago, when they triggered their bring forward, they got to do only two years. Now they’re doing it again and they have three years.
“It’s never been more important to be constantly looking at those clients who we may be ruling out of contributions and thinking do you have a bigger opportunity than you did a couple of years ago.”
