Concessional Contributions

Concessional contributions (CCs) are super contributions made from pre-tax income. They include employer Superannuation Guarantee (SG) contributions, salary sacrifice contributions, and personal contributions for which you claim a tax deduction. These contributions are taxed at 15% inside the super fund (or 30% for individuals with income above $250,000 under Division 293), which is typically lower than the individual's marginal tax rate.

For 2026–27, the concessional contributions cap is $32,500 per year (up from $30,000 in 2025–26). Contributions exceeding this cap are included in your assessable income and taxed at your marginal rate (minus a 15% offset for the tax already paid in the fund). The cap has risen in steps: $27,500 (2021–22 to 2023–24), $30,000 (2024–25 to 2025–26), and $32,500 from 2026–27.

Since 1 July 2018, you can carry forward unused concessional cap amounts from the previous 5 years, provided your total super balance was below $500,000 at the end of 30 June of the previous year. This is particularly useful for people with fluctuating incomes or those who want to make a large one-off contribution. For example, if you only contributed $20,000 in each of the last 3 years (a total of $30,000 unused cap), you could contribute up to $60,000 in the current year without exceeding your available cap.