Use unused concessional cap from up to five past years, if your total super balance is under $500,000.
The carry-forward concessional contributions rule is one of the more useful flexibility levers in the super system, especially for people whose income or savings pattern is uneven. If your total super balance is under $500,000 on 30 June of the previous year, you can use unused concessional cap from up to five previous financial years on top of this year's cap. It is general information rather than financial advice, but the mechanics are worth understanding.
According to the ATO's concessional contributions cap page, two tests determine whether you can use carry-forward amounts in a particular year. First, your total superannuation balance must be under $500,000 on 30 June of the previous financial year. Second, you must have actually had unused concessional cap in one or more of the previous five years. Both tests have to be met for the same year.
From 1 July 2024 to 30 June 2026 the general concessional contributions cap is $30,000. From 1 July 2026 the cap is set to increase to $32,500. Carry-forward amounts sit on top of the standard cap, so for example if you have $20,000 of unused cap from the previous five years and the current cap is $30,000, you could potentially contribute up to $50,000 of concessional contributions in that year without exceeding the cap, subject to the balance test.
| Period | General concessional cap |
|---|---|
| 1 July 2024 to 30 June 2026 | $30,000 |
| From 1 July 2026 | $32,500 |
If you exceed the current year's standard cap and you have unused amounts from the previous five years, the ATO applies the oldest available unused cap first. This is helpful because the unused amount about to expire is the one used up first. Any amount not used within five financial years expires.
The carry-forward rule is particularly handy if your income jumps in a particular year, perhaps because of a bonus, the sale of a business or property, or returning to work after a break. Rather than missing out on the chance to put extra into super in years when you could not, you can build up unused cap during the lean years and use it when you can afford a larger contribution. Combined with salary sacrifice or a personal deductible contribution, this is a common way for households to lift their super in higher-income years.
Disclaimer: This article is general information, not tax or financial advice. The balance and cap settings can change, and individual outcomes depend on your full circumstances. Check the ATO concessional contributions cap page and seek advice for your own situation.