Super Catch-Up Contributions — How the Carry-Forward Rule Works

The carry-forward rule — also called catch-up contributions — allows you to contribute more than the standard $30,000 annual concessional cap if you have unused cap space from previous years and your total super balance is below $500,000. Unused cap amounts roll forward for up to five years, and you can draw on them in a single year to make a larger tax-effective contribution into super.

This rule is particularly valuable for people who had lower super contributions during career breaks, periods of part-time work, self-employment, or illness — giving them an opportunity to catch up once their financial situation improves.

Key Takeaways

• Carry-forward lets you use unused concessional cap space from the previous 5 years to contribute more than the standard annual cap
• Eligibility: your total super balance at 30 June of the prior year must be under $500,000 (threshold not indexed)
• The current annual concessional cap is $30,000 — carry-forward can allow significantly more in a single year
• Unused cap amounts are available from FY2018–19 onward — earlier unused amounts cannot be carried forward
• Particularly valuable for those returning from parental leave, career breaks, or extended self-employment periods

How the Carry-Forward Rule Works

Each financial year, your concessional cap may not be fully used. If your employer’s SG contributions plus any salary sacrifice or personal deductible contributions don’t reach the annual cap, the unused portion doesn’t disappear — it carries forward and accumulates for up to five years.

In a later year, you can draw on this accumulated unused cap space to contribute more than the standard annual cap, provided your total super balance (TSB) at 30 June of the previous year was below $500,000.

The $500,000 TSB Threshold

The TSB threshold for carry-forward eligibility is $500,000 — and unlike other super thresholds, this figure has not been indexed. It was set at $500,000 when the rule was introduced in FY2018–19 and remains unchanged.

This means:

• If your TSB at 30 June 2025 was below $500,000, you can access carry-forward cap space in FY2025–26
• If your TSB at 30 June 2025 was $500,000 or above, you cannot — even if you have significant unused cap from prior years

The TSB check is done at 30 June of the prior financial year — not at the time you make the contribution. If your balance was under $500,000 on 30 June 2025, you can use carry-forward space in FY2025–26, even if your balance subsequently grows above $500,000 during that year.

How Much Can You Carry Forward?

Unused concessional cap space accrues from FY2018–19 onwards (the rule was introduced that year). You can carry forward unused space for a maximum of 5 rolling years — space older than 5 years is lost.

For FY2025–26, the oldest unused cap space you can access is from FY2020–21. Space from FY2019–20 and FY2018–19 has expired for FY2025–26 purposes.

Concessional Cap History (relevant carry-forward years)

If in any of those years your total concessional contributions (SG + salary sacrifice + personal deductible) were less than the cap, the difference carries forward.

Example — Carry-Forward Calculation

Suppose your contributions history and TSB are as follows:

Total unused cap available for FY2025–26: $15,000 + $15,500 + $15,000 = $45,500

Your total available concessional contribution for FY2025–26 = $30,000 (current cap) + $45,500 (carry-forward) = $75,500

This means you could contribute up to $75,500 concessionally in FY2025–26 — taxed at 15% inside the fund — provided your TSB was under $500,000 at 30 June 2025.

How to Check Your Available Carry-Forward Space

The ATO tracks your unused cap space automatically. You do not need to calculate it manually.

To check your available carry-forward balance:

1. Log in to myGov and navigate to the ATO section
2. Go to Super → Information → Carry-forward concessional contributions
3. The ATO shows your unused cap for each financial year from FY2018–19

Your super fund’s annual member statement will show what was contributed in each year, but the ATO is the authoritative source for your accumulated carry-forward balance.

How to Use Carry-Forward Contributions

Using carry-forward space works through the same mechanisms as ordinary concessional contributions:

Via Salary Sacrifice

Arrange with your employer to salary sacrifice a larger amount in a particular year. You and your employer do not need to formally invoke the carry-forward rule — you simply contribute more than the standard annual cap, and the ATO applies carry-forward space automatically when assessing your contributions at tax time.

Via Personal Deductible Contributions

Make a larger personal contribution from your bank account before 30 June and lodge a Notice of Intent to Claim a Deduction with your super fund. The carry-forward space is applied by the ATO when processing your return.

Via Lump Sum Contribution

The carry-forward rule is especially suited to lump sum situations — for example, using a year-end bonus, settlement proceeds, or funds from a business sale to make a single large concessional contribution before 30 June.

Who Benefits Most from Carry-Forward Contributions

The carry-forward rule is most valuable for:

• People returning from career breaks — carers, parents who took time out of the workforce, those who took extended unpaid leave
• People who were self-employed or had irregular income and made lower contributions in lean years
• Employees who had lower-paid early careers when SG contributions were small
• Anyone approaching retirement with a low-to-moderate balance (under $500,000) who wants to top up super tax-effectively before preservation age
• People who received a windfall (inheritance, redundancy, business sale) and want to shelter it in super at the concessional rate

Interaction with the TSB Threshold Over Time

One limitation of the carry-forward rule is that once your TSB reaches $500,000, you lose access — even if you have accumulated years of unused cap space. This means the rule benefits people with moderate balances, not those who already have large balances.

If you are approaching $500,000 and have significant unused cap space accumulated, it may be worth considering whether to use it while you still can — rather than waiting until your balance grows above the threshold.

Frequently Asked Questions

Does unused carry-forward space expire? Yes. Unused concessional cap space can only be carried forward for 5 years. Space older than 5 years is permanently lost. For FY2025–26, the oldest accessible space is from FY2020–21. Space from FY2019–20 is no longer available.

Can I use carry-forward space if I’m self-employed? Yes, provided your TSB was under $500,000 at 30 June of the prior year. Self-employed people who make personal deductible contributions can use carry-forward space in exactly the same way as employees who salary sacrifice.

Does using carry-forward contributions affect my non-concessional cap? No. Carry-forward applies only to the concessional cap. Using accumulated concessional space does not affect your ability to make non-concessional contributions in the same year.

What if I exceed my carry-forward allowance? If you exceed your total available concessional cap (standard cap plus carry-forward), the excess is treated as excess concessional contributions and included in your assessable income, taxed at your marginal rate with a 15% offset and an interest charge. Always verify your available carry-forward through myGov before making large contributions.

Can both my spouse and I each use carry-forward contributions? Yes. The carry-forward rule is assessed on an individual basis. Both partners in a couple can each have their own accumulated unused cap space and both can use carry-forward in the same year, provided each meets the $500,000 TSB test independently.

See also: Super Contributions. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.