Missed making extra super contributions in past years? The carry-forward (or “catch-up”) rule lets you use up unused concessional cap from previous years — a powerful way to make a large, tax-deductible contribution in a year when it suits you.
How it works
Since 2018-19, any concessional cap you didn’t use in a year can be carried forward for up to five years. If you haven’t used your full cap, you can stack the unused amounts on top of this year’s $32,500 and make a much larger concessional contribution in a single year.
The one condition that catches people
You can only use carry-forward if your total super balance was under $500,000 on 30 June of the previous financial year. Cross that line and the door closes — which is why timing matters, especially for people whose balances are approaching the threshold.
Who it’s perfect for
- People with irregular income — contractors, business owners, anyone with a big year.
- Anyone selling an asset with a capital gain, using a deductible contribution to reduce the tax.
- People returning to work after a break who want to catch up on missed contributions.
Get the timing right
Carry-forward is one of the most valuable — and most time-sensitive — contribution strategies. The interplay with the $500,000 balance test, Division 293 and your marginal tax rate means it pays to plan it. A complimentary Donmont review can pinpoint how much unused cap you have and the best year to use it.
Frequently asked questions
What is the carry-forward (catch-up) rule?
It lets you use unused concessional contribution cap from up to five previous financial years (from 2018-19 onwards), on top of the current year's $32,500 cap, to make a larger tax-deductible contribution.
Who can use carry-forward contributions?
You can only use carry-forward if your total super balance was under $500,000 on 30 June of the previous financial year. It's especially useful for people with irregular income or a one-off capital gain.
How much can I carry forward?
You can carry forward all unused concessional cap from the previous five years. For example, $50,000 of unused cap plus the current $32,500 cap would allow an $82,500 concessional contribution in one year.
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