Using Carry-Forward Contributions
If you haven't used your full concessional contributions cap in recent years, you may be able to make larger contributions now using unused amounts from the past five years. This can be particularly valuable in high-income years.
This scenario provides general information only and is not personal financial advice. Consider consulting a licensed financial adviser for advice tailored to your situation.
What carry-forward contributions are
The carry-forward rule (sometimes called "catch-up contributions") allows you to access unused concessional cap space from up to five previous financial years. Instead of being limited to $30,000 this year, you may be able to contribute significantly more if you have unused cap available.
The rule has applied since 1 July 2018, so the first year you could carry forward was 2019-20 (using unused cap from 2018-19).
When carry-forward is available
Eligible if:
- Total super balance was under $500,000 on the previous 30 June
- You have unused concessional cap from 2018-19 onwards
- The unused cap hasn't expired (older than 5 years)
Not eligible if:
- Total super balance was $500,000 or more on the previous 30 June
- You've already used all your concessional cap in previous years
- The unused amounts have expired (more than 5 years old)
Example: Standard cap vs carry-forward
Person with $40,000 unused cap from previous years and super balance under $500,000
Standard cap only
$30,000 limit
- Available cap
- $30,000
- Less employer SG (~$15,000)
- ($15,000)
- Maximum extra contribution
- $15,000
- At 30% marginal rate
- $2,250 tax saved
Using carry-forward
$70,000 total cap
- This year's cap
- $30,000
- Carried-forward cap
- $40,000
- Total available
- $70,000
- Potential extra contribution
- $55,000
Why high-income years are often the best time
The tax benefit of concessional contributions depends on your marginal tax rate. The higher your income, the greater the tax saving:
| Marginal rate | Tax on $10,000 as salary | Tax on $10,000 as super | Saving |
|---|---|---|---|
| 16% (+ 2% ML) | $1,800 | $1,500 | $300 |
| 30% (+ 2% ML) | $3,200 | $1,500 | $1,700 |
| 37% (+ 2% ML) | $3,900 | $1,500 | $2,400 |
| 45% (+ 2% ML) | $4,700 | $1,500* | $3,200 |
*May be $3,000 if Division 293 applies (income + super > $250k)
Common high-income situations where carry-forward is valuable:
- Receiving a large bonus or commission
- Selling an investment property or shares (capital gain adds to income)
- Final year of work before retirement
- Returning to work after years of lower income
How to check your available carry-forward
- Log into myGov and access ATO online services
- Go to Super → Information → Carry-forward concessional contributions
- View your unused amounts by financial year and total available cap
The ATO tracks this automatically based on contributions reported by your super fund. Allow 2-3 months after financial year end for the latest year's data to appear.
Common misunderstandings
"I can always access unused cap from previous years"
Only if your total super balance was under $500,000 at the previous 30 June. If your balance grows past this threshold, you lose access to carry-forward (but can still use the standard $30,000 cap).
"Unused cap accumulates forever"
Unused amounts expire after five years. The oldest unused cap is used first when you make contributions. If you don't use it within the window, it's lost.
"I can carry forward from before 2018-19"
The carry-forward rules only started from 1 July 2018. Any unused cap from 2017-18 or earlier cannot be accessed—those amounts are gone.
"Using carry-forward affects my non-concessional cap"
Carry-forward only applies to concessional (before-tax) contributions. The non-concessional (after-tax) cap of $120,000 per year is separate and has its own rules, including a bring-forward arrangement.
FAQ
What are carry-forward super contributions?
Carry-forward contributions allow you to use unused concessional cap amounts from the previous five financial years. If you didn't contribute the full $30,000 (or previous cap amounts) in those years, you may be able to make larger concessional contributions now without exceeding your cap.
Who is eligible to use carry-forward contributions?
To use carry-forward contributions, your total super balance must be less than $500,000 on the previous 30 June. You can only carry forward unused amounts from years starting 2018-19 onwards, when the rules began.
How do I find my available carry-forward amount?
Log into myGov and access the ATO online services. Under 'Super', you'll find your 'Carry-forward concessional contributions' which shows unused amounts from each eligible year and your total available carry-forward cap.
When is the best time to use carry-forward contributions?
High-income years are often ideal because the tax saving is greater when contributions offset income taxed at higher marginal rates. Common situations include receiving a large bonus, selling an asset, or a final year of work before retirement.
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