How to include or exclude the unused concessional cap carry forward rule

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If you choose robot, Pathfinder will take advantage of any unused concessional cap as long as:

  • The individual has enough cash to do so
  • At the Retirement planning step, you have not set concessional contributions to be lower than the cap

Including the unused concessional cap carry forward rule

Pathfinder will take advantage of the unused concessional cap carry forward rule as long as the individual has enough cash to do so, it will maximise the net wealth at the end of the analysis, and the options described in the table below have set.

Stepdetails
Enter the unused concessional cap from previous years
  1. Go to the Current situation > Personal details step
  2. On the individual, find the Unused concessional contributions cap section and fill in the "Unused concessional contributions cap (year)" fields for each year that is listed:
    1. The years you need to fill in are based on the rules and the case's start date for analysis:
      1. Unused concessional contributions cap 2018/19: Maximum value is $25,000
      2. Unused concessional contributions cap 2019/20: Maximum value is $25,000
      3. NOTE: do not enter a value higher than the maximum because Pathfinder will not be able to produce results.
    2. If you leave these fields blank, Pathfinder will assume there is no unused cap to carry forward from the previous years
    3. It is required to fill in the unused cap for each year separately (rather their current total unused cap across all years), because in later years of the analysis, Pathfinder needs to take fewer of the previous years to calculate the unused cap.
Make sure you have allowed Pathfinder to include this rule for the individual
  1. Go to the Retirement planning sub-step (under the Cash flows & Goals step on the top menu)
  2. Under the Individual, for the Allow carry forward of unused concessional cap, select 
Allow concessional contributions
  1. Go to the Retirement planning sub-step (under the Cash flows & Goals step on the top menu)
  2. For the individual, make sure you have chosen options that allow voluntary concessional contributions. For more see Retirement planning goal (super contributions and pensions)
Where to see the unused concessional cap in the results

In the results, you can see if the unused concessional cap is used in the following places:

  • In the Strategy summary in the 'Build super' section for the individual, in the 'Projected pre-tax super contributions' chart, there is a line indicating their carry forward contributions cap
  • In the Action items, the individual's carry forward unused concessional cap will be mentioned on the action item if the individual makes a voluntary concessional contribution.
  • In the Detailed reports, on the "(Individual) > Cash flows > Super deposits summary" report, there is a line called "Available unused cap" in the "Concessional deposits limits" section.

Excluding the unused concessional cap carry forward rule

Excluding the unused concessional cap carry forward rule means that Pathfinder will only stick to the annual concessional cap.  This may be useful if Pathfinder is holding off making contributions to take advantage of future changes in tax brackets or there is a personal reason to not use the cap (e.g. you do not want to make such high contributions).

StepDetails
For the individual, don't allow the unused cap
  1. Go to the Retirement planning sub-step (under the Cash flows & Goals step on the top menu)
  2. Under the Individual, for the Allow carry forward of unused concessional cap, select 'No'
(Optional) Check the unused concessional cap from previous years

Values filled in at the Unused concessional contributions cap (at the Current situation > Personal details step) will be ignored if the 'Allow carry forward of unused concessional cap' field is set to 'No'.  So if you have entered values, then you can leave them (they might  be useful if you want to include this rule in another scenario).  If you have not entered any values, then it won't affect the calculations either.

Check the resultsIn the results, the value of unused concessional cap may be mentioned, however the actual contributions will keep to the annual cap.