Make larger concessional contributions if you haven’t used all of your concessional cap in an earlier year.
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.
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.
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|
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.
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