Understanding the Bring‑Forward — A Technical Guide - July 1 2025

The upcoming increase in the Non‑Concessional Contribution (NCC) cap from $110,000 to $120,000 on 1 July 2025 introduces practical consequences for SMSF trustees—particularly those who have triggered or are considering triggering the bring‑forward arrangement. Below is a technical breakdown of how the contribution mechanics operate under the updated rules, including thresholds, timing interactions and edge‑case considerations.

1. NCC Rules From 1 July 2025 — Framework and Regulatory Mechanics

From 1 July 2022, individuals under age 75 have been able to make NCCs without meeting the work test. This remains unchanged.

From 1 July 2025, the standard annual NCC cap increases to $120,000. Accordingly, the maximum bring‑forward cap increases to $360,000 (3 × $120,000).

The bring‑forward arrangement allows a member to accelerate up to two future years’ worth of NCCs into the current financial year, subject to Total Superannuation Balance (TSB) limitations (discussed below).

2. Important Concept: Bring‑Forward Year‑of‑Trigger Determines the Cap

It is absolutely critical to understand that the NCC cap applicable to a bring‑forward period is determined in the year the bring‑forward is triggered, not the years in which subsequent contributions are made.

This is where most misunderstandings arise.

Example A — Bring‑Forward Triggered in 2023–24

• Contribution in 2023–24: $200,000

• Year‑of‑trigger NCC cap: $110,000 × 3 = $330,000

• Remaining capacity:

  
  

  $330,000 − $200,000 = $130,000

  
  

  Remaining period covers 2024–25 and 2025–26.

Even though the NCC cap increases to $120,000 in 2025–26, the remaining cap remains anchored to the 2023–24 bring‑forward cap of $330,000.

Example B — Bring‑Forward Triggered in 2024–25

• Contribution in 2024–25: $200,000

• Year‑of‑trigger NCC cap: $120,000 × 3 = $360,000

• Remaining capacity:

  
  

  $360,000 − $200,000 = $160,000

  
  

  Remaining period covers 2025–26 and 2026–27.

Here, because the bring‑forward is triggered in the year the cap increases, the higher limit applies.

3. The $2 Million Total Super Balance Limit — Eligibility Constraints

Since 1 July 2017, an individual’s Total Superannuation Balance (TSB) at 30 June of the previous financial year determines NCC eligibility. This applies across all superannuation accounts, not only the SMSF.

From 1 July 2025, the indexed threshold is $2 million.

The TSB regulates not only whether a member can contribute NCCs, but also how many years of bring‑forward capacity can be triggered.

TSB Thresholds and Bring‑Forward Eligibility (As at 30 June Prior Year)

Total Super Balance	Bring‑Forward Entitlement
< $1.76m	Full 3‑year cap ($360,000)
$1.76m – < $1.88m	2‑year cap ($240,000)
$1.88m – < $2.0m	Standard annual cap only ($120,000). No bring‑forward.
≥ $2.0m	NCCs prohibited.

Key Technical Points

• A member at or above $2m TSB cannot make any NCCs.

• If a member is close to $2m, they may contribute only to the extent the contribution does not cause them to exceed $2m.

• TSB is measured once per year — at 30 June — meaning the eligibility snapshot is fixed for the following financial year.

• Triggering the bring‑forward rule requires that the TSB threshold conditions are met on the day the contribution is made, not the planned contribution schedule thereafter.

4. Sequencing Considerations for Individuals Near the TSB Threshold

Where a member’s TSB is between $1.76m and $2.0m, careful sequencing becomes critical.

Common SMSF pitfalls include:

• Triggering the bring‑forward rule unintentionally by contributing more than the annual cap.

• Assuming next year’s higher cap will retrospectively increase an already‑triggered bring‑forward cap (it does not).

• Overlooking external superannuation accounts (industry/retail funds) when calculating TSB.

• Failing to check the ATO’s Bring‑Forward Arrangement status before making contributions.

5. What SMSF Members Should Do Now

To avoid breaching the NCC cap or unintentionally triggering the bring‑forward rule:

1. Review your ATO bring‑forward status via:

   
   

   myGov → ATO → Super → Information → Bring‑Forward Arrangement

2. Confirm:

   • Whether you have triggered the bring‑forward

   • The financial years it covers

   • How much of your cap remains

3. Check your TSB at 30 June 2025 (once released), as it will govern your 2025–26 eligibility.

4. Map your contribution sequence accurately, particularly if you are:

   • Near the $2m TSB threshold

   • Intending to maximise the new $360,000 cap

   • Holding multiple super accounts

   • Already inside an existing bring‑forward period

Because NCC cap breaches create significant administrative consequences (excess contribution releases, amended assessments, potential tax adjustments), precision is essential.

Summary

Since 1 July 2025, SMSF members gain access to a higher NCC cap and an expanded bring‑forward capacity. However, the operation of the bring‑forward rule is highly dependent on:

• The year of trigger,

• The member’s TSB, and

• The contribution sequencing across multiple years.

Understanding these technical interactions ensures members maximise available caps while maintaining compliance with all regulatory thresholds.