How to Check Your Unused Concessional Cap on MyGov

The carry-forward rule started on 1 July 2018, so the maximum you could have accumulated is five years of unused caps (from 2018-19 onwards). Unused amounts expire after five years, so if you had unused cap from 2018-19, it expired on 30 June 2024.

Your unused cap is based on what you actually contributed in previous years versus the cap for that year. If you contributed $15,000 in 2020-21 when the cap was $25,000, you have $10,000 of unused cap from that year. If you contributed nothing because you weren't working, you have the full cap amount as unused.

What To Do With Your Unused Cap

If you have unused cap available, there are two main ways to use it.

Salary Sacrifice

Arrange with your employer to contribute extra pre-tax money directly from your salary. This reduces your taxable income immediately and may provide tax savings, especially if you're in a higher tax bracket. For example, if you're on $150,000 and in the 37% tax bracket, contributing an extra $10,000 via salary sacrifice could potentially save you $3,700 in tax (subject to the 15% contributions tax within super).

Personal Deductible Contribution

You can contribute after-tax money from your bank account to your super fund, then claim a tax deduction when you lodge your tax return. This approach gives you more control over the timing and amount, but you need to wait until tax time to get the benefit. You must lodge a Notice of Intent to Claim a Deduction with your super fund before lodging your tax return, or the contribution won't be treated as concessional.

Timing and Strategy

You need to make contributions before 30 June to use this financial year's cap. If you're using carry-forward amounts, they're available in addition to your current year's cap, so you could potentially contribute significantly more than the standard $30,000 limit if you have unused cap from previous years.

However, remember that unused amounts expire after five years. If you have old unused cap from 2019-20, it will expire on 30 June 2025. You should consider prioritizing older unused cap before it expires, though all contributions are allocated to the current year's cap first, then to the oldest carried-forward amounts.

Also remember that using your unused cap affects your super balance for next year. If using your unused cap pushes your total super balance over $500,000, you won't be able to use carry-forward the following year. This isn't necessarily a problem, it's just something to be aware of when planning contributions over multiple years.

Common Questions

What if my balance is over $500,000?

You can't use carry-forward at all. You're limited to the standard $30,000 concessional cap for the current year. This is assessed on 30 June each year, so if your balance drops below $500,000 due to market movements or withdrawals, you may regain access to carry-forward the following year.

Does unused cap from before 2018-19 carry forward?

No. The carry-forward rule only started on 1 July 2018. Unused cap from earlier years doesn't count.

Can I use carry-forward if I'm over 67?

Yes, as long as your balance is under $500,000 and you meet the work test (if required for your age). The work test rules changed in 2022-23, making it easier for older Australians to contribute.

What happens if I exceed my cap?

You'll be charged excess concessional contributions tax. The ATO will send you a notice and offer you the option to release the excess amount from super or leave it in and pay extra tax at your marginal rate (minus a 15% offset). This is something you want to avoid, so it's worth tracking your contributions carefully throughout the year.