If you've ever had a year where you contributed less than your super cap, you may be sitting on thousands of dollars of unused contribution capacity - and you might not even know it.
Last updated: April 2026 · ATO-Aligned Information 8 min read
In this article
The carry-forward rule - also called the catch-up concessional contributions rule - allows eligible Australians to make larger before-tax superannuation contributions in a single financial year by using any unused portion of their concessional contributions cap from the previous five years.
Introduced on 1 July 2018 and first usable from the 2019–20 financial year, this rule was designed to help people who had time out of the workforce, career gaps, or periods of lower income to "catch up" on their super contributions - and claim a bigger tax deduction in the process.
"If you haven't hit your concessional cap every year, you may have tens of thousands of dollars of unused contribution capacity available right now."
Carry-forward contributions aren't a special contribution type - they simply allow you to use previously unused portions of your concessional cap on a rolling basis. Think of it as a five-year rolling window of contribution room that accumulates if you don't use it.
Before using the carry-forward rule, it's important to understand your base concessional contributions cap - the annual limit on before-tax contributions to your super fund.
|
$30K Annual concessional cap |
$120K Annual non-concessional |
5 yrs Rolling window for unused |
$500K Total Super Balance (TSB) |
Cap history at a glance
| Financial Year | Concessional Cap |
|---|---|
| 2017–18 to 2020–21 | $25,000 |
| 2021–22 to 2023–24 | $27,500 |
| 2024–25 & 2025–26 ✦ Current | $30,000 |
Concessional contributions include employer Superannuation Guarantee (SG) payments, salary sacrifice contributions, and personal contributions for which you claim a tax deduction. All of these count toward the cap.
Important note on the SG rate
The Superannuation Guarantee rate reached 12% on 1 July 2025. For someone earning $100,000, that means employer contributions alone of $12,000 - leaving $18,000 of concessional cap space for salary sacrifice or personal deductible contributions before reaching the $30,000 annual limit.
There are two key conditions you must meet to access your carry-forward amounts in any given year:
Condition 1: Total Super Balance under $500,000
Your Total Superannuation Balance (TSB) must have been below $500,000 on 30 June of the previous financial year. For example, to use carry-forward amounts in 2025–26, your TSB must have been below $500,000 on 30 June 2025. Your TSB includes balances across all your super accounts, both accumulation and retirement phase.
Importantly, if your balance exceeds $500,000 in one year but later falls back below that threshold, you regain eligibility in the subsequent year.
Condition 2: Contributions exceed the annual cap
Carry-forward amounts are applied automatically by the ATO once your concessional contributions in a given year exceed the annual general cap ($30,000). You don't need to actively elect to use them - the ATO applies your oldest available unused cap first.
Who typically benefits most
The carry-forward rule is particularly powerful for: people returning to work after parental leave or caring responsibilities; those who've received an inheritance, sold an investment property, or received a bonus; small business owners with variable income; and anyone who simply hasn't maxed out their super contributions in past years.
Unused concessional cap amounts from up to five previous financial years can be carried forward. The first year eligible amounts began accruing was 2019–20, meaning those amounts expired at the end of 2024–25. From 2025–26 onwards, unused amounts from 2020–21 onward remain available.
The ATO applies unused amounts automatically in chronological order - oldest first. So if you have unused cap from 2021–22 and 2022–23, the 2021–22 amount is drawn down first.
How to check your available carry-forward amounts
Log in to ATO Online Services via myGov. Navigate to Super → Information → Carry forward concessional contributions. The figure shown represents unused cap from prior years, in addition to the current year's $30,000 cap. Note that current-year figures may not be available in the first months of the financial year.
Step 1
Login to MyGov (https://my.gov.au/)
Step 2
Access ATO
Step 3
Click the Super dropdown in the top menu and select either Concessional Contributions or Carry-Forward Concessional Contributions
Step 4
Select last year and you should see a box like the image below. Expand the "Show Details"
Step 5
From the show details section you can see a column for Concessional Contributions.
Important timing consideration
For personal contributions you plan to claim as a tax deduction, you must lodge a valid "Notice of intent to claim or vary a deduction for personal super contributions" with your super fund before you lodge your tax return, before the fund processes a full rollover, or before other triggers. Missing this deadline means you cannot claim the deduction.
Scenario 1
Sarah - Returning from parental leave
Sarah worked part-time for three years while raising children. Her employer SG contributions were well below the cap each year. Now back full-time with a higher salary, she wants to catch up.
| Year | Cap | Contributed | Unused |
|---|---|---|---|
| 2021–22 | $27,500 | $10,000 | $17,500 |
| 2022–23 | $27,500 | $12,000 | $15,500 |
| 2023–24 | $27,500 | $14,000 | $13,500 |
| 2024–25 | $30,000 | $16,000 | $14,000 |
| Total carry-forward available in 2025–26 | $60,500 | ||
With a TSB below $500,000, Sarah could contribute up to $90,500 in concessional contributions in 2025–26 ($60,500 unused + $30,000 current year cap), all taxed at just 15% in her fund rather than her marginal rate.
Scenario 2
Michael - Sold an investment property
Michael, aged 54, sold an investment property and has a large capital gain in 2025 - 26. He hasn't maximised super contributions for several years. His TSB is $380,000.
| Strategy | Amount | Tax Impact |
|---|---|---|
| Current year cap | $30,000 | Taxed at 15% in fund vs ~47% |
| Carry-forward unused (4 yrs) | ~$50,000 | Same favourable tax treatment |
| Total potential contribution | ~$80,000 | Reduces taxable income by ~$80,000 |
Concessional contributions are taxed at 15% inside your super fund. For most working Australians, this is significantly lower than their marginal income tax rate. Using carry-forward contributions converts income that would otherwise be taxed at your marginal rate into money that goes into super at just 15%.
|
15% Tax rate on concessional |
47% Top marginal tax rate |
32% Max tax saving per dollar |
Note: If your income plus concessional contributions exceeds $250,000, Division 293 tax applies - an additional 15% on some or all of your concessional contributions (bringing the total to 30%). Even at 30%, this remains below the 47% top marginal rate.
Can I use carry-forward contributions if my super balance is over $500,000?
No. Your Total Superannuation Balance must have been below $500,000 on 30 June of the previous financial year. If it exceeded this threshold, you are not eligible to access carry-forward amounts in that financial year - even if you have substantial unused cap available.
Do I need to tell my super fund I'm using carry-forward contributions?
No. You don't need to notify your fund. Carry-forward amounts are applied automatically by the ATO once your contributions exceed the annual cap. However, if you are making personal contributions you intend to claim as a tax deduction, you must lodge a Notice of Intent to Claim form with your fund.
How far back do unused cap amounts go?
Carry-forward amounts can only come from the previous five financial years. The rule started in 2019–20, so unused amounts from that year expired after 2024–25. From 2025–26, the oldest available year is 2020–21.
Can I use carry-forward contributions to offset a capital gain?
Indirectly, yes. By making a large deductible personal super contribution using carry-forward amounts, you reduce your taxable income in the year of the capital gain. This lowers the income against which the capital gain is taxed, and may reduce your overall tax liability. This is a common strategy when selling investment properties or shares.
What happens if I exceed my total carry-forward cap?
Excess concessional contributions are included in your assessable income and taxed at your marginal rate, with a 15% tax offset to account for contributions tax already paid inside the fund. The excess amount will also count toward your non-concessional contributions cap.
You can elect to have up to 85% of the excess released from your super fund - this removes it from your NCC count and gives you cash to pay the tax bill. If you're under the NCC cap and take no action, the amount simply remains in the fund as an after-tax contribution.
Does the non-concessional cap have a carry-forward rule too?
No. The carry-forward rule only applies to concessional (before-tax) contributions. Non-concessional contributions have a different mechanism called the "bring-forward rule," which allows you to bring forward up to three years of future after-tax contribution caps into a single year - contributing up to $360,000 in 2025–26 if eligible.
Is there an age limit for using carry-forward contributions?
You must be under 75 years of age to make voluntary personal contributions to super. For employer SG contributions, separate rules apply. There is no specific age floor for carry-forward - as long as you are eligible to contribute and meet the TSB test, you can use accumulated unused cap amounts.
If you think the carry-forward rule could benefit you, here's a practical action plan:
Professional advice recommended
The carry-forward rule interacts with Division 293 tax, total super balance thresholds, the transfer balance cap, and your personal tax situation. A registered financial adviser or tax agent can model the exact outcomes for your circumstances and ensure you don't inadvertently exceed your limits.
General information only. This article provides general information about Australian superannuation rules and does not constitute financial product advice. It does not take into account your personal objectives, financial situation or needs. Superannuation and tax rules are complex and subject to change.
