How carry-forward contributions can help you boost your super balance
Business owners draw an income from their work in several different ways and most know that they are responsible for paying themselves superannuation.
As income may vary depending on how the business performs between years, that can affect how much is directed into their own super.
Super payments from employment form part of concessional contribution entitlements, which is taxed at a lower rate of 15%, and is capped at $27,500 per year from the 2021-22 financial year. That has been increased from $25,000.
But if these contributions are less than the cap, the remaining cap space doesn’t need to be lost. The difference can be rolled over and carried forward for up to five years.