Comment RECONTRIBUTION and I will send you our strategy pack

Comment RECONTRIBUTION and I will send you our strategy pack.

One of the biggest mistakes I see with a recontribution strategy is withdrawing more from super than can be contributed back in.

If you withdraw too much, the excess may need to sit in your bank account or another investment outside super. That can change the tax outcome and may not align with your retirement plan.

It can also be tempting to put the full amount back into super straight away, but after tax contributions are limited by the non concessional contribution cap.

For the 2026/27 financial year, the general non concessional contribution cap is $130,000.

Some people may be eligible to use the bring forward arrangement. This can allow up to $390,000 to be contributed in one financial year by bringing forward the next two years of caps.

However, this is not automatic. Your age, total super balance, existing contribution history and other rules need to be checked first.

If you use the full $390,000 bring forward amount, you generally cannot make further non concessional contributions during the remaining two years of that three year period.

If you exceed your available cap, the ATO will issue a determination. You may have options, including releasing the excess contribution and part of the associated earnings, or leaving the excess in super and potentially paying additional tax. The right outcome depends on your circumstances.

This is why the withdrawal amount and the recontribution amount should be planned before money leaves super.

Comment RECONTRIBUTION and I will send you our strategy pack.

General advice only. This information does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and seek personal advice before acting. Superannuation and tax laws can change, and tax outcomes depend on individual circumstances.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).