Catch-up concessional contributions
Make larger concessional contributions if you haven’t used all of your concessional cap in an earlier year.
How does it work?
If you make or receive concessional contributions (CCs) of less than the annual concessional contributions cap of $25,000 pa, you may be able to accrue these unused amounts for use in subsequent financial years.
2018/19 was the first financial year you could accrue unused cap amounts and these amounts can be used from 1 July 2019. Unused cap amounts can be carried forward for up to five years before they expire. To be eligible to make catch-up CCs, your total super balance at the prior 30 June must be below $500,000.
What are the benefits?
Greater flexibility to make concessional contributions which may be helpful even if you have broken work patterns, or can’t afford to contribute in a particular year.
Case study
In 2018/19, Fatima made total CCs of $15,000, which is $10,000 less than the annual cap amount of $25,000.
Fatima took 12 months maternity leave from 1 July 2019 and didn’t make any CCs in 2019/20.
From 1 July 2020, Fatima returned to full-time work where her CCs again totalled $15,000, which is $10,000 less than the annual cap amount of $25,000.
The table below shows how she can carry forward $35,000 in unused CCs in 2018/19 and 2019/20.
It also shows how much she could contribute each financial year if she wanted to use up the carried forward unused cap amounts, as well as the standard annual CC cap.
For example, in 2021/22 she could make CCs totalling up to $70,000. Let’s say Fatima received an inheritance and contributed $50,000 in CCs in total for that financial year, using some of her carried forward CCs. She would then have $20,000 in carried forward CCs available in the next financial year.
| Financial year | Annual CC cap amount | Total CC cap including any carried forward CCs |
Concessional contributions made | Unused CCs that may be carried forward |
|---|---|---|---|---|
| 2018/19 | $25,000 | $25,000 | $15,000 |
$10,000 |
| 2019/20 | $25,000 | $35,000 | Nil |
$35,000 |
| 2020/21 | $25,000 | $60,000 | $15,000 | $45,000 |
| 2021/22¹ | $25,000 | $70,000 | $50,000 | $20,000 |
Important things to consider
- To use up carried forwards cap amounts, you may want to make salary sacrifice, opens in new page or personal deductible contributions, opens in new page.
- You can’t access your super until you meet a condition of release, opens in new page such as reaching preservation age, opens in new page and retiring.
¹ The CC cap may be indexed at the start of each financial year. We have assumed that the CC cap is not indexed in 2021/22.
What next?
Find out more about Super and retirement rules.
Got a question?
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General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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