Comment RECONTRIBUTION and I will send you our information pack

Comment RECONTRIBUTION and I will send you our information pack.

A recontribution strategy involves withdrawing money from super once you have met a condition of release, then contributing it back into super as an after tax, non concessional contribution.

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 and contribute up to $390,000 in one financial year. This uses the current year cap plus the next two financial years of caps.

That means a person with a super balance of $390,000 or less may be able to restructure their whole balance in one financial year, but only if they meet the access, age, total super balance and contribution eligibility rules.

If the full $390,000 is used, there is generally no further non concessional contribution space available for the following two financial years.

For balances above $390,000, the strategy may need to be considered across more than one financial year.

When money is withdrawn from super, it is generally paid out in the same taxable and tax free proportions as your existing super balance. When it is contributed back as an after tax contribution, it generally becomes part of the tax free component.

This may help reduce the taxable proportion of super over time, which can be particularly relevant where super is intended for adult children who are not death benefit dependants for tax purposes.

Comment RECONTRIBUTION and I will send you our information 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).