An industry specialist has reminded practitioners and fund members of the need to understand the difference between tax and superannuation law as to the rules imposed with regard to non-concessional contributions (NCC) and in particular the associated bring-forward provisions.
MLC Australia senior technical services manager Jennifer Brookhouse stressed this is extremely important when a super fund members reaches age 75.
“Tax law is going to tell me [what] my non-concessional contributions cap is [if I’m turning 75] for the entire financial year and what it requires is I must be at least under 75 on 1 July of the year,” Brookhouse told attendees of a technical webinar today.
“For a client who is turning 75 in October, [they are] definitely 74 on 1 July and therefore for [that income year], if [they] are not in a bring-forward period, then they can [determine] ‘yes, I can use the bring-forward rules’.”
She indicated the member’s total super balance must be below the general transfer balance cap in order to be eligible to take this action.
According to Brookhouse, advisers and their clients must then examine superannuation law to understand the additional rules to which an individual turning 75 must adhere before invoking the NCC bring-forward provisions.
“We now [need to] step into the realm of our superannuation legislation and we need to understand when a trustee can accept a contribution,” she said.
“The trustee can accept the contribution up to 28 days after the month [the member] turns 75.”
She pointed out in the circumstances where a person is turning 75 in October, the NCC would have to be made by 28 November.
“So [where a member reaches the age of 75], their non-concessional contribution cap applies for a year, but the contribution must be made within a particular window,” she noted.
“Remember these are two different pieces of legislation [and] they don’t necessarily work beautifully together.”
The topic of superannuation contributions will be discussed in more detail at SMSF Professionals Day 2026, co-hosted by selfmanagedsuper and Accurium. To register for the event, please click here.
Darin Tyson-Chan
Editor
Darin is the founder and publisher of Benchmark Media, an independent publishing house whose mastheads include financialobserver, selfmanagedsuper and smstrusteenews. He has been covering the financial services space for over a decade and in this time he has worked for a variety of trade publications. Darin has also written for the Money section published in The Sydney Morning Herald and The Age.
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