From www.smsfadviser.com: A recent legal case highlighted the interaction between the carry forward of unused concessional contributions cap space and the Division 293 tax clawback.

The taxpayer’s income exceeded the Division 293 threshold due to applying carried forward concessional contributions, resulting in a tax liability of $3,315.

The tribunal ruled that the carry forward of unused cap space was automatic, and taxpayers do not have an election in this matter, despite claims to the contrary.