Carry-Forward Concessional Contributions: How to Catch Up on Super in Australia
If your total super balance is under $500,000, you can use up to 5 years of unused concessional cap in a single year. Here's how carry-forward contributions work in 2026-27.
If you have not maxed your concessional super contributions cap in recent years — due to a career break, parental leave, working overseas, or simply not knowing the cap existed — the carry-forward rules let you make up that gap in a single year. The catch: your total super balance must be under $500,000 on 30 June of the previous financial year.
This is one of the most underused provisions in Australian superannuation law. Here is exactly how it works, who benefits, and how to use it in 2026-27.
What carry-forward contributions are
Each financial year, you have a concessional (pre-tax) contributions cap. In 2026-27, that cap is $32,500. If you do not use the full cap, the unused portion does not disappear immediately — it rolls forward and can be used in any of the following five years.
The carry-forward rule has applied since the 2019-20 financial year. That means as of 2026-27, you can access unused cap amounts from as far back as 2021-22.
Important: the $500,000 balance condition. You can only use carry-forward amounts if your total super balance (TSB) on 30 June of the previous financial year was below $500,000. Your TSB is the combined value of all your super accounts across all funds. If you are above $500,000, you cannot use carry-forward amounts — even if you have significant unused cap.
Use our Superannuation Calculator to project your super balance and see when you might approach the $500,000 threshold.
How much unused cap can you access?
The ATO tracks your unused cap amounts for the previous five financial years. You can see your carry-forward amounts in ATO Online Services via myGov under "Manage > Superannuation > Concessional contributions."
2026-27 example — how unused cap accumulates:
| Financial year | Concessional cap | Contributed | Unused cap |
|---|---|---|---|
| 2021-22 | $27,500 | $10,000 | $17,500 |
| 2022-23 | $27,500 | $10,000 | $17,500 |
| 2023-24 | $27,500 | $10,000 | $17,500 |
| 2024-25 | $30,000 | $12,000 | $18,000 |
| 2025-26 | $30,000 | $13,200 | $16,800 |
| 2026-27 available cap | $32,500 + $87,300 carry-forward | $119,800 total |
In this example, a person who has only been contributing their employer's SGC (~12% of salary) could make a single concessional contribution of up to $119,800 in 2026-27, provided their TSB on 30 June 2026 was under $500,000.
Note: Unused amounts expire after five years. The 2021-22 unused cap ($17,500 in the example above) will expire after 30 June 2027 if not used in 2026-27.
Who benefits most from carry-forward contributions
People returning from a career break or parental leave
Several years of reduced or zero employer contributions (unpaid leave, or periods where SGC was below the cap) leave significant unused cap. A parent returning to full-time work in their late 30s or early 40s often has $60,000–$100,000 of carry-forward available.
Returning expatriates
Australians who worked overseas and contributed to foreign pension schemes instead of Australian super often return with large unused Australian concessional caps and a super balance significantly below what their peers have accumulated. Carry-forward allows a substantial one-off top-up.
Freelancers and self-employed people
Self-employed Australians have no mandatory SGC — super contributions are optional. Those who have run a business and reinvested everything into the business often reach their late 40s with minimal super and a large unused cap. A business sale or good income year can create an opportunity to make a large deductible contribution using carry-forward amounts.
People who received an inheritance or large windfall
You cannot make large non-concessional (after-tax) contributions if your TSB is already above $1.66 million, but carry-forward allows significant concessional contributions for those below $500,000 TSB — reducing taxable income substantially in the year of a windfall.
The tax saving from using carry-forward
Concessional contributions are taxed at 15% inside super regardless of how large they are (subject to the Division 293 rule for incomes above $250,000). The tax saving compared to receiving the money as income is the difference between your marginal rate and 15%.
Example: $60,000 carry-forward contribution at $120,000 salary:
- Without carry-forward: $60,000 received as salary, taxed at 32% marginal rate = $19,200 in income tax
- With carry-forward: $60,000 into super, taxed at 15% contributions tax = $9,000
- Tax saving: $10,200 in a single year
Example: $80,000 carry-forward contribution at $160,000 salary:
- Without carry-forward: $80,000 received as salary, taxed at 39% = $31,200 in income tax
- With carry-forward: $80,000 into super, taxed at 15% contributions tax = $12,000
- Tax saving: $19,200 in a single year
For high earners (above $250,000), Division 293 applies and the super tax rate increases to 30% — but the saving is still $17 per $100 versus taking it as salary.
| Marginal rate (incl. Medicare) | Normal income tax | Super contributions tax | Saving per $10,000 |
|---|---|---|---|
| 17% ($18k–$45k) | $1,700 | $1,500 | $200 |
| 32% ($45k–$135k) | $3,200 | $1,500 | $1,700 |
| 39% ($135k–$190k) | $3,900 | $1,500 | $2,400 |
| 47% ($190k–$250k) | $4,700 | $1,500 | $3,200 |
| 47% ($250k+, Div 293) | $4,700 | $3,000 | $1,700 |
How to actually use carry-forward contributions
There are two ways to make concessional contributions: salary sacrifice through your employer, and personal deductible contributions.
Option 1 — Salary sacrifice (ongoing)
If you want to use carry-forward amounts gradually across the year, increase your salary sacrifice arrangement with your employer. Note that salary sacrifice counts toward the current year's cap first, then draws on carry-forward amounts. Your employer cannot easily compute carry-forward amounts — you track this yourself and ensure your total (SGC + salary sacrifice + personal deductible) does not exceed the combined cap.
Option 2 — Personal deductible contributions (lump sum)
This is the more common way to deploy large carry-forward amounts in a single transaction:
- Transfer funds from your bank account directly to your super fund as a personal (non-concessional) contribution
- Lodge a Notice of Intent to Claim a Deduction (Section 290-180 of the ITAA 1997) with your super fund before lodging your tax return or rolling over the account
- Your fund acknowledges the notice
- Claim the deduction on your tax return — the amount you claimed is now treated as a concessional contribution and taxed at 15% inside the fund
The Notice of Intent step is critical. Miss it, and the contribution is treated as non-concessional (no tax deduction), wasting the carry-forward benefit entirely.
Checking your carry-forward balance:
Log into myGov → ATO Online Services → Manage → Super → Concessional contributions. The ATO shows your unused cap amounts by year. Verify this before making a large contribution — errors in ATO records do occur and should be corrected before contributing.
Timing strategy: use it now or save it?
Carry-forward amounts expire after five years. The 2021-22 unused cap must be used by 30 June 2027 or it disappears. Check yours now.
When to use carry-forward early (do not wait):
- You have a high-income year — a bonus, business profit, or capital gain event — and the tax saving at your current rate is larger than it will be in future years
- Your TSB is approaching $500,000 — once you cross the threshold on 30 June of any year, you lose access to carry-forward for the following year
- You have unused 2021-22 cap expiring after 30 June 2027
When to hold carry-forward for later:
- You expect significantly higher income in the next year or two (promotion, business sale) — the tax saving at a higher rate will be larger
- Your current income is relatively low and the benefit at 17% MTR is minimal
- You need the cash now and carrying it forward allows flexibility
Carry-forward and the $500,000 TSB threshold in practice
The $500,000 test is on 30 June each year. If your TSB crosses $500,000 at any 30 June, you cannot use carry-forward amounts in the following financial year. However, if your TSB then drops below $500,000 (for example, a market downturn), you may regain access the following year.
This creates a narrow window for some people. Someone with a TSB of $430,000 who is salary sacrificing heavily may cross $500,000 by June — locking them out of carry-forward for the next year. Monitoring your TSB in April–May each year lets you make a decision before the window closes.
Frequently asked questions
How many years of unused cap can I carry forward?
You can access unused concessional cap amounts from up to five previous financial years. In 2026-27, that means unused amounts from 2021-22, 2022-23, 2023-24, 2024-25, and 2025-26 can all be used — provided your total super balance on 30 June 2026 was under $500,000. Amounts from 2021-22 expire after 30 June 2027 if not used.
What is my total super balance and where do I check it?
Your total super balance (TSB) is the combined value of all your super interests across all funds as at 30 June each year. The ATO calculates it from fund reporting data. You can see your TSB in myGov → ATO Online Services → Manage → Superannuation. Your super fund(s) also report to the ATO annually, so the figure updates each year after the annual rollover.
Can I use carry-forward contributions if I have multiple super funds?
Yes — the unused cap applies to you personally, regardless of how many funds you hold. The $500,000 TSB threshold counts your total balance across all funds. Contributions can be made to any one fund or spread across multiple funds, but the total across all funds cannot exceed your available cap (current year cap plus carry-forward amounts).
What happens if I accidentally exceed the concessional cap?
Excess concessional contributions are included in your assessable income and taxed at your marginal rate, with a 15% tax offset (because the super fund already paid 15% contributions tax). You also pay the excess concessional contributions charge on the tax shortfall. The ATO issues an excess contributions determination — you can elect to have the excess (plus 85% of the associated earnings) withdrawn from super to pay the tax, or leave it in super and pay the tax from your own funds.
Does salary sacrifice count against my carry-forward cap?
Yes. Your concessional cap includes all concessional contributions: employer SGC + salary sacrifice + personal deductible contributions. When you use carry-forward, the available total cap increases — but all three types still count toward it. For example, if your employer pays $13,000 SGC and you salary sacrifice $10,000, you have used $23,000 of your available cap, leaving carry-forward amounts for any additional personal deductible contributions you make.
Do non-concessional contributions count against the carry-forward cap?
No. Non-concessional contributions (after-tax money you put into super) have a separate cap ($130,000/year in 2026-27). They do not affect or draw on your concessional cap. Carry-forward rules only apply to concessional contributions.
This article is for general information only and does not constitute financial, tax or legal advice. Super contribution rules and ATO systems can change. Verify your carry-forward amounts via myGov before making any large contributions, and consult a registered tax agent or financial adviser for personal advice.
Written by
Mahi PatilSoftware engineer & personal finance enthusiast · Melbourne, Australia
Built Dolaro.com.au to create accurate, free Australian finance tools. Invests in Australian and global ETFs and writes about the topics researched firsthand. More about Mahi →