By Paul Feeney, Founder and Chief Executive Officer, Otivo

Careers don't run in straight lines. People take parental leave, study, drop to part-time, or start businesses that eat a year of income. For decades, the super system quietly punished that — any concessional contribution cap you didn't use by 30 June simply evaporated.

Since 1 July 2018, it doesn't.

Unused concessional contribution cap amounts can now be carried forward for up to five years. For someone returning to full-time work after several years of lower income, this can create a significant opportunity to make additional concessional contributions, provided they meet the eligibility rules. Here's how the rule works, the three conditions that determine eligibility, and the expiry clock many people don't realise is ticking.

Carry-forward concessional contributions allow eligible super members to use unused concessional contribution cap amounts from up to five previous financial years on top of the current year's concessional contributions cap. Eligibility requires a total super balance below $500,000 on 30 June of the previous financial year, available unused cap amounts, and being eligible to contribute, generally under age 75. As contribution caps are indexed periodically, always check the current ATO limits before making additional contributions.

How do carry-forward contributions work?

The mechanics are best kept separate from the eligibility rules, because people routinely blur them.

The rule has operated since 1 July 2018 — unused cap from earlier years can't be accessed.

Unused concessional contribution cap amounts can be carried forward for up to five financial years.
When contributions exceed the current year's cap, unused amounts are applied automatically, oldest year first.
Amounts not used within five years expire.

In practice, nobody applies for anything. A person simply contributes more than the current year's concessional cap — usually through a personal deductible contribution or increased salary sacrifice — and, if eligible, the ATO automatically applies their oldest unused amounts first.

Available amounts appear in ATO online services through myGov under the super section, making this the most reliable way to check your available carry-forward amounts.

Who is eligible to use carry-forward amounts?

All three of the following conditions must be met.

Total super balance below $500,000 on 30 June of the previous financial year.
Unused concessional contribution cap amounts from one or more of the previous five financial years.
Eligibility to make contributions, generally being under age 75, with funds able to accept contributions up to 28 days after the end of the month a member turns 75. People aged 67 to 74 who wish to claim a tax deduction for a personal contribution may also need to satisfy the work test or work test exemption where required under the applicable rules. The work test relates to claiming the deduction, not simply making the contribution.

If you don't meet all three conditions, only the standard concessional contribution cap for the relevant financial year applies.

How much extra could be contributed?

The amount available depends entirely on your unused concessional contribution cap from the previous five financial years.

For example, someone who made only minimal concessional contributions while working part-time or taking parental leave may have accumulated a substantial amount of unused cap that could later be used in a higher-income year. This is precisely what the carry-forward rules were designed to achieve — providing greater flexibility for Australians whose income varies over time.

One clock worth watching is the five-year expiry rule. Unused cap amounts expire after five financial years if they are not used, so older unused amounts should generally be considered first.

What are the tax rules that come with it?

Carry-forward contributions are still concessional contributions, so the normal tax rules apply.

They're generally taxed at 15% inside the fund rather than at your marginal tax rate, which is what makes the strategy attractive for many higher-income earners.

For higher-income individuals, Division 293 tax may also apply. Where combined income and concessional contributions exceed the Division 293 threshold, an additional 15% tax applies to affected concessional contributions, increasing the effective contributions tax to 30%.

A large catch-up contribution can itself push someone over the Division 293 threshold, so it's important to consider the full tax outcome before contributing.

For personal deductible contributions, the notice of intent process is essential. A valid notice must be lodged with the super fund before the earlier of:

lodging your tax return for that financial year; or
the end of the following financial year,

and the fund must acknowledge the notice before the deduction can be claimed.

Whether a catch-up contribution is appropriate depends on your income, super balance, cash flow, tax position and broader financial circumstances. Otivo's tax-deductible contributions advice module provides personalised advice, where appropriate, under AFSL and Australian Credit Licence No. 485665 to help eligible Australians determine whether this strategy suits their circumstances.

Frequently asked questions

Where can unused carry-forward amounts be checked?

In ATO online services via myGov under the super section. The ATO calculates available amounts using information reported by your super fund, making it more reliable than personal records.

Do carry-forward amounts affect the non-concessional cap?

No.

Carry-forward provisions apply only to concessional contributions.

Non-concessional contributions have a separate annual cap and separate bring-forward rules that operate independently. As contribution caps may change over time through indexation, check the current ATO thresholds before making significant after-tax contributions.

What happens if a carry-forward contribution exceeds the available amounts?

The excess is treated as an excess concessional contribution.

Generally, the excess amount is included in your assessable income and taxed at your marginal tax rate, with a 15% tax offset recognising the contributions tax already paid by the fund. An excess concessional contributions charge may also apply, although up to 85% of the excess can generally be released from super.

Checking your available carry-forward amounts through myGov before contributing can help avoid this outcome.

Sources

ATO — Carry-forward unused concessional contributions
ATO — Key superannuation rates and thresholds
ASIC MoneySmart — Super contributions

Disclaimer

The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.

How do I edit / change my super balance in Otivo