How do carry-forward concessional super contributions work in Australia?

If your total superannuation balance is under $500,000 on 30 June of the previous financial year, you can use carry-forward concessional contributions to make larger pre-tax contributions than the standard annual cap. Unused concessional cap amounts can be carried forward for up to five years.

For 2024-25, the annual concessional contributions cap is $30,000. If you did not use your full cap in 2020-21, 2021-22, 2022-23, and 2023-24, the unused amounts are available to carry forward and use now, subject to the five-year limit. For example, if you had $15,000 of unused cap in 2023-24, you could contribute up to $45,000 in concessional contributions in 2024-25.

This rule is particularly useful for people who had career breaks, worked part-time, or had years with lower income where they did not maximise their super contributions. To access the unused cap, you simply contribute more than the standard cap in your current year return. The ATO's myGov account shows your available carry-forward balance. You can claim the personal contribution as a tax deduction by lodging a 'notice of intent to claim a deduction' with your super fund before lodging your tax return.