After tax contributions & bring forward

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After-tax contributions into superannuation are additional deposits you choose to make from your take-home pay – this is money you’ve already paid tax on. Investment earnings from these contributions are taxed at 15% inside superannuation, however depending on your individual tax rate, this may be a lower than the rate you would pay on investment earnings outside of super. The current cap on after-tax contributions is $100,000 per year for everyone (if under age 65 or satisfy the work test).

“Bring Forward” If you are under 65 at the beginning of the financial year you can “bring forward” another two years of after-tax contributions and contribute up to $300,000 in one financial year. However, this means you will not be able to make any more after-tax contributions for another two years. If you are under 65 and contribute more than $100,000 in one financial year you will automatically trigger the bring-forward rule. The bring-forward rule may be worth considering if you are thinking of selling assets and transferring the proceeds into your super, or if you want to invest an inheritance.

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