Hi Maria

If the client used all their NCC cap in the 2020/21 year by making a $300K NCC they cannot make any further NCC's until 1/7/2023 (subject to age / total super balance requirements).

The reason your client cannot get access to the increased cap amount in the 2021/22 year is due to the maximum amount that can be contributed under the bring forward 3 year rule is based on the year it is triggered (in your case being 3 by $100,000 = $300,000).

To support this refer ITAA 1997 Section 292.85 as per the below:

" (5) Your non-concessional contributions cap for the first year is an amount equal to:

(a) if the first year cap space does not exceed an amount equal to twice the general non-concessional contributions cap for the first year--twice the general non-concessional contributions cap for the first year; or

(b) otherwise--3 times the general non-concessional contributions cap for the first year.

Second year of bring forward

(6) Your non-concessional contributions cap for the second year is:

(a) if:

(i) your * total superannuation balance immediately before the start of the second year is less than the * general transfer balance cap for the second year; and

(ii) your * non-concessional contributions for the first year fall short of your cap for the first year (worked out under subsection (5));

that shortfall; or

(b) otherwise--nil.

Third year of bring forward

(7) Your non-concessional contributions cap for the third year is:

(a) if:

(i) your * total superannuation balance immediately before the start of the third year is less than the * general transfer balance cap for the third year; and

(ii) your * non-concessional contributions for the second year fall short of your cap for the second year (worked out under subsection (6));

that shortfall; or

(b) if:

(i) your total superannuation balance immediately before the start of the third year is less than the general transfer balance cap for the third year; and

(ii) your cap for the second year is nil; and

(iii) your non-concessional contributions for the first year fall short of your cap for the first year (worked out under subsection (5));

that shortfall; or

(c) otherwise--nil."

Thanks

SMSF AAA