A million-dollar super opportunity
BACK in 2006-07, the federal government gave working Australians a once-only chance to invest up to $1 million of after-tax personal money, via Non-Concessional Contributions, into super.
In that year alone, investors contributed more than $84 billion of private money into super - a 250% increase on the previous financial year.
There's nothing new in investors reacting like this - they typically move quickly to capitalise on opportunities with short expiration dates.
Inadvertently - and somewhat unexpectedly - the government has given many people a similar opportunity leading up to June 30, 2017.
This time, however, the opportunity allows for contributions into super of up to $540,000 a person. That's almost $1.1 million a couple.
You will need to be careful if you have made NCCs within the past two or three years, as you may be prohibited from making additional contributions or may be restricted because of the three-year bring-forward rule.
For those who can't take advantage of the full $540,000 NCC limit before June 30, complex transitional rules will apply. One of them states that anyone who makes NCCs of more than $380,000 before June 30 this year won't be able to make further NCCs until after June 2019.
The time frame and degree of urgency
With time running short until the end of financial year, anyone who has the ability to benefit from this opportunity has less than a month to act on it. If they snooze, they will lose - potentially a lot - in opportunity costs down the line.
The June 30 deadline is going to roll around quickly and before then you will need to get your head around how you're going to time things if you're going to act successfully on this.