How Carry-Forward Contributions Work
Each year you can have a limited amount of before-tax (concessional) money paid into super: the concessional contributions cap. It is $32,500 from 1 July 2026. Most employees stay well below it, because their only concessional contributions are the employer’s 12% super guarantee. The gap between what was contributed and the cap is the unused amount for that year. The ATO lets you carry those unused amounts forward and add them to your cap in later years, so you can make a larger contribution in one year, for example after a bonus or a house sale.
Three rules decide whether it works for you. First, your total super balance must be under $500,000 at 30 June of the previous financial year, which is 30 June 2026 for 2026-27. Second, you can carry forward unused amounts from up to 5 previous financial years, starting from 2018-19, including years when you had no super fund. Third, amounts are available for 5 years and then expire.
Concessional Cap by Year and When Each Amount Expires
Each year’s unused amount is measured against that year’s cap, not today’s. The caps rose from $25,000 to $27,500 in 2021-22, to $30,000 in 2024-25 and to $32,500 in 2026-27.
| Income year | Concessional cap | Last year you can use any unused amount |
|---|---|---|
| 2018-19 | $25,000 | 2023-24 |
| 2019-20 | $25,000 | 2024-25 |
| 2020-21 | $25,000 | 2025-26 |
| 2021-22 | $27,500 | 2026-27 |
| 2022-23 | $27,500 | 2027-28 |
| 2023-24 | $27,500 | 2028-29 |
| 2024-25 | $30,000 | 2029-30 |
| 2025-26 | $30,000 | 2030-31 |
| 2026-27 | $32,500 | 2031-32 |
ATO, contributions caps and concessional contributions cap. The ATO’s example: a 2020-21 unused amount not used by the end of 2025-26 expires.
Worked Example
An employee whose only contributions have been employer super had $8,000, $9,000, $10,000, $11,500 and $12,500 paid in 2021-22 to 2025-26, and a total super balance of $150,000 at 30 June 2026. The unused amounts are:
| Year | Cap | Contributed | Unused | Used in 2026-27 |
|---|---|---|---|---|
| 2021-22 | $27,500 | $8,000 | $19,500 | $19,500 |
| 2022-23 | $27,500 | $9,000 | $18,500 | $8,000 |
| 2023-24 | $27,500 | $10,000 | $17,500 | $0 |
| 2024-25 | $30,000 | $11,500 | $18,500 | $0 |
| 2025-26 | $30,000 | $12,500 | $17,500 | $0 |
Example only. Total unused: $91,500.
The total unused is $91,500, so the cap for 2026-27 is $32,500 + $91,500 = $124,000. Suppose the employee contributes $60,000 in total this year. That is $27,500 over the general cap, so the ATO draws $27,500 from the carried-forward amounts, oldest first (2021-22 first), and no excess arises. $64,000 of room is left, and the 2021-22 amount is fully used so none of it expires.
How to Use Your Carry-Forward Cap
- Check your numbers first. Your carry-forward amounts and total super balance are in ATO online services (myGov: Super, Information, Carry forward concessional contributions). Contributions count in the year your fund receives them, so a late payment can land in the next year.
- Salary sacrifice. Ask your employer to redirect pay into super before tax. Use the salary sacrifice calculator to see the take-home effect.
- Personal contribution with a deduction. Pay it into your fund from your bank account, then give the fund a notice of intent to claim a deduction in the approved form and get its acknowledgment. Time limits apply.
- Pay before 30 June. The year ends on 30 June 2027 and the fund must have the money by then for it to count in 2026-27.
The tax benefit is the gap between your marginal rate (plus 2% Medicare levy) and the 15% tax your fund pays on the contribution. At a 30% marginal rate that is about 17 cents saved per dollar contributed; at 45%, about 32 cents. The money stays in super until you meet a condition of release.
Things to Watch
- The balance test uses 30 June of the previous year. If you were at $500,000 or more on 30 June 2026, you cannot use carried-forward amounts in 2026-27, even if you have plenty unused.
- Contributions you did not expect. Costs your employer pays for you, such as administration fees and insurance premiums, are concessional contributions too.
- Going over. The excess is included in your assessable income and taxed at your marginal rate with a 15% offset. Above $250,000 of income plus concessional contributions, Division 293 applies.
For the cap itself, the SG check and a one-year salary sacrifice test, see the concessional contributions cap page. This page is for the multi-year catch-up.
Related Calculators and Guides
- Concessional Contributions Cap: the $32,500 cap and the one-year check
- Salary Sacrifice Calculator: take-home pay after sacrificing
- Superannuation Calculator: what your employer should pay
- Division 293 Tax: the extra tax on high incomes
- Superannuation Guide: how super works
Frequently Asked Questions
Carry-forward concessional contributions questions and answers
What are carry-forward concessional contributions?
If you contribute less than the concessional cap in a year, the unused part can be carried forward and used in later years to contribute above the general cap, for up to 5 years. It lets you catch up on before-tax super contributions, for example by salary sacrificing or making a personal contribution you claim as a deduction.
Who can use carry-forward contributions?
You can use carried-forward amounts if your total super balance was less than $500,000 at 30 June of the previous financial year, and you have unused cap amounts from earlier years. The amounts count from 2018-19 and can include years when you were not a member of a super fund.
What is the concessional contributions cap for 2026-27?
$32,500 from 1 July 2026. It was $30,000 for 2024-25 and 2025-26, $27,500 for 2021-22 to 2023-24, and $25,000 from 2017-18 to 2020-21.
How long does an unused cap amount last?
Five years, then it expires. The ATO's example: a 2020-21 unused amount not used by the end of 2025-26 expires. So for 2026-27 you can use unused amounts from 2021-22 to 2025-26, and the 2021-22 amount is lost after 30 June 2027.
Which carry-forward amounts are used first?
The oldest. The ATO says the oldest available unused cap amounts are carried forward first, so the amount closest to expiring is used before newer ones. This happens automatically once your concessional contributions exceed the general cap for the year.
What counts as a concessional contribution?
Your employer's super guarantee, salary sacrifice contributions, any other employer contributions (including fees and insurance your employer pays for you) and personal contributions you claim a tax deduction for. Contributions count towards the cap in the year your super fund receives them.
How do I find my unused cap amounts?
Sign in to ATO online services through myGov and select Super, then Information, then Carry forward concessional contributions. Your concessional contributions and your total super balance are shown in the same area. Check your fund has reported everything before you rely on the figure.
How do I claim a tax deduction for a personal contribution?
You must give your super fund a notice of intent to claim a deduction, in the approved form, and receive an acknowledgment from the fund. Time limits apply, so do this before you lodge your tax return for the year. Contributions your employer makes by salary sacrifice need no notice.
What happens if I go over the cap?
Excess concessional contributions are included in your assessable income and taxed at your marginal rate, with a 15% tax offset for the tax your fund already paid. The excess concessional contributions charge no longer applies from 1 July 2021, and you can choose to release up to 85% of the excess from your super.
How we worked this out▼
For each of the five years before 2026-27, unused = that year’s cap minus the concessional contributions you enter, never below nil. If your total super balance at 30 June 2026 is under $500,000, the unused amounts are added to the $32,500 general cap. Contributions above the general cap draw on the unused amounts oldest first. The tax saving is headroom × (your marginal rate + 2% Medicare levy − 15%).
Caps by year come from the ATO table. Your ATO online services record is the authority on your own amounts. The calculator ignores Division 293, non-concessional contributions and defined benefit interests. General information, not advice.
Sources & References
- 1Concessional contributions cap— Australian Taxation Office
- 2Key superannuation rates and thresholds: contributions caps— Australian Taxation Office
- 3Personal super contributions— Australian Taxation Office
Last verified: 5 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
Areas of Expertise