Unlocking Your Superannuation Potential
Are you looking for a powerful yet often overlooked strategy to significantly boost your retirement savings and potentially reduce your annual tax bill? Understanding carry forward concessional contributions – sometimes called “catch-up contributions” – could be a game-changer for your financial future.
This comprehensive guide covers what carry forward contributions are, who is eligible, how to calculate and utilise your unused amounts, and crucial pitfalls to avoid.
Disclaimer: Superannuation rules can be complex. Seek personalised financial advice from a qualified professional to ensure strategies align with your individual circumstances and goals.
Understanding Concessional Contributions & Caps
What are Concessional Contributions?
Concessional contributions are payments made into your super fund before tax, taxed at 15% inside the fund – usually lower than your marginal income tax rate.
Common types:
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Employer Super Guarantee (SG) Contributions: Compulsory contributions (currently 11.5% of ordinary earnings; 12% by 1 July 2025).
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Salary Sacrifice Contributions: Pre-tax salary contributions arranged with your employer.
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Personal Contributions Claimed as a Tax Deduction: After-tax contributions for which you lodge a Notice of Intent (NOI) with your super fund.
Annual Concessional Contributions Cap
The government limits how much you can contribute concessional contributions each year:
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Current Cap (1 July 2024): $30,000
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Historical Caps:
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1 July 2021 – 30 June 2024: $27,500
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1 July 2017 – 30 June 2021: $25,000
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Exceeding the cap may trigger extra tax. Carry forward amounts count toward the cap.
What Are Carry Forward Concessional Contributions?
Carry forward contributions allow you to use unused concessional cap amounts from up to five previous financial years.
Key Rules
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Rolling 5-Year Period: Unused cap amounts are available for five financial years, after which they expire.
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Oldest First Rule: The ATO applies the oldest unused cap first when contributions exceed your current cap.
Benefits
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Tax Savings: Contributions taxed at 15% vs. your marginal rate.
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Accelerated Super Growth: Boost your retirement balance.
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Flexibility: Ideal for bonuses, windfalls, or capital gains.
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Catching Up: Helps individuals with career breaks or lower past contributions.
Eligibility Criteria
Total Super Balance (TSB) Test
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Your TSB must be under $500,000 at 30 June of the previous financial year.
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TSB includes all super interests, accumulation, and pension accounts.
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Exceeding $500,000 disqualifies you for the next year, but you regain eligibility if TSB drops below the threshold.
Available Unused Caps
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Carry forward is available from 2018-2019 onwards.
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Unused caps expire after five years.
| Financial Year | Concessional Cap | Contributions | Unused Cap | Expiry |
|---|---|---|---|---|
| 2018-19 | $25,000 | $10,000 | $15,000 | 30 June 2024 |
| 2019-20 | $25,000 | $15,000 | $10,000 | 30 June 2025 |
| 2020-21 | $25,000 | $20,000 | $5,000 | 30 June 2026 |
| 2021-22 | $27,500 | $10,000 | $17,500 | 30 June 2027 |
| 2022-23 | $27,500 | $27,500 | $0 | N/A |
| 2023-24 | $27,500 | $15,000 | $12,500 | 30 June 2029 |
| 2024-25 | $30,000 | — | — | — |
Note: This is illustrative; actual amounts depend on your history.
Age & Other Requirements
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Contribute up to age 75.
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Age 67–74: Must meet work test for personal deductible contributions; employer contributions do not require it.
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TFN must be provided to your fund.
How to Check Your Available Carry Forward Amounts
Via ATO MyGov:
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Log in to MyGov.
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Link ATO services if not already.
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Go to Super > Information > Carry forward concessional contributions.
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Review your Total Super Balance, current year cap, and unused caps for previous five years.
How to Make Carry Forward Concessional Contributions
Salary Sacrifice
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Arrange pre-tax contributions above employer SG.
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Speak with payroll; no special forms needed for carry forward.
Personal Deductible Contributions
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Contribute from after-tax income.
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Lodge a Notice of Intent (NOI) with your fund before lodging your tax return.
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Wait for written acknowledgment before claiming the deduction.
The ATO automatically applies unused caps once contributions exceed the general cap.
Strategic Uses & Advanced Scenarios
Maximising Tax Savings
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Bonuses, windfalls, or capital gains can be directed into super.
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Reduce taxable income in high-income years.
Catching Up After Career Breaks
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Parents, students, or unemployed individuals can make up missed contributions.
Nearing Retirement
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Use accumulated savings or mortgage-free funds to boost super.
Pitfalls to Avoid
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Exceeding total cap → Excess Concessional Contributions (ECC) taxed at marginal rate minus 15% offset.
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Confusing carry forward (concessional) vs. bring forward (non-concessional).
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Not lodging NOI for personal deductible contributions.
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Missing the 5-year expiry of unused caps.
Comparison Table
| Feature | Carry Forward Concessional | Non-Concessional (Bring Forward) | Spouse Contributions | Downsizer Contributions |
|---|---|---|---|---|
| Type | Pre-tax / deductible | After-tax | After-tax | After-tax |
| Fund Tax | 15% | 0% | 0% | 0% |
| Cap | Annual + unused 5 yrs | Annual $120k + 2-yr bring forward $360k | No direct cap | $300k/person |
| Eligibility | TSB < $500k | TSB < $1.9m | Spouse income < $40k | Age 55+, home >10 yrs |
| Benefit | Tax savings, super boost | Super boost | Tax offset, spouse super boost | Super boost from home sale |
Real-World Case Studies
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Career Changer: Sarah, 40, returns to work after 3 years parental leave; uses $45,000 unused cap + $30,000 current cap → contributes $75,000 in 2024-25.
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Bonus Earner: David, 55, receives $50,000 bonus; $45,000 personal deductible contribution reduces taxable income.
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Property Seller: Maria, 62, sells property with $100,000 gain; uses $80,000 total cap to offset gain.
Tools & Resources
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ATO MyGov: Check TSB and unused contributions.
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Super Fund Statements: Track contributions year-to-date.
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Financial Calculators: Model contribution impact; search “super contributions calculator Australia.”
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Professional Advice: For complex strategies or high-value contributions, consult a qualified advisor or tax agent.
Take Control of Your Super Future
Carry forward concessional contributions are a flexible way to accelerate retirement savings and achieve tax benefits. Check your unused cap today and make contributions strategically – your future self will thank you.
FAQs
What is the main benefit of carry forward concessional contributions?
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Significant tax savings (15% fund tax vs. marginal income tax) and rapid super growth.
How many years back can I carry forward unused cap amounts?
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Up to five previous financial years, starting from 2018-19.
How do I check my available unused cap amounts?
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Log in to MyGov → ATO → Super → Carry forward concessional contributions.
Is there a limit to how much I can carry forward?
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Your TSB must be under $500,000 at 30 June of the previous year.
Do I need to notify my super fund if I’m using carry forward amounts?
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No, the ATO applies unused amounts automatically. NOI required only for personal deductible contributions.
What happens if I contribute too much?
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Excess Concessional Contributions (ECC) taxed at marginal rate minus 15% offset.
Difference between carry forward and bring forward?
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Carry forward: concessional, pre-tax, TSB < $500k.
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Bring forward: non-concessional, after-tax, TSB < $1.9m.
Do unused cap amounts expire?
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Yes, after five financial years.
