Carry-forward concessional contributions (catch-up rule)

The rule in one sentence

If your total super balance (TSB) was under $500,000 on 30 June of the previous financial year, you can contribute more than the normal annual cap in the current year — using unused cap from the previous five financial years.

How to check your unused cap

1. Log into myGov and go to ATO online services
2. Super → Information → Carry-forward concessional contributions
3. The ATO displays your unused cap by year, and how much is available to use now

The figure the ATO shows is authoritative — don’t try to calculate it yourself from payslips.

Worked example — Emma

Emma earned $55,000 a year for four years while raising kids part-time. Her total concessional contributions (SG + small sacrifice) averaged $7,000 per year. Each year the cap was $27,500–$30,000, so she had roughly $22,000 unused cap each year. Over four years that’s $88,000 of unused cap.

Now her youngest is in school and she’s back to $150,000 salary with a $35,000 bonus. She makes a personal deductible contribution of $80,000. Without carry-forward she’d be massively over cap. With carry-forward, the $80,000 fits within her $30,000 current-year cap plus $50,000 of accumulated unused cap.

Tax effect: roughly $80,000 × (37% − 15%) = $17,600 in tax saved in a single year. The money goes into super; her cash take-home is barely affected because she was going to pay $29,600 in tax on that money anyway.

The 5-year expiry

Unused cap expires after five financial years. Cap unused in 2019–20 expired on 30 June 2025. Use it or lose it.

The $500,000 gate

You can only carry forward if your total super balance on 30 June of the prior financial year was under $500,000. This is a single point-in-time check. If your balance was $510,000 on 30 June last year but is now $450,000 (say, because of a market drop), you still can’t use carry-forward this year.

When carry-forward is most useful

• Parents returning to work after extended parental leave
• People selling a business in a single high-income year
• Self-employed with lumpy income
• Someone receiving a large bonus, share-based payment, or redundancy
• A high-income year before retirement (especially combined with downsizer contribution)

Traps to watch

• Check the TSB gate first. Make the contribution thinking you’re under $500k, only to find you weren’t, and you’ll have excess contributions to sort out.
• Division 293 still applies if your income plus concessional contributions exceeds $250,000. A big catch-up year is the most common way to trigger Div 293.
• Notice of Intent must be lodged with the fund before the tax return if the contribution is personal deductible.