Worked Examples and Checklists
Carry-forward concessional contributions: a worked 2026–27 example
How unused concessional cap amounts carry forward for five years, who qualifies with a balance under $500,000, and a worked example using them against a capital gain.
If your total super balance was less than $500,000 at 30 June of the previous year, you can make concessional contributions above the annual cap by using unused cap amounts from up to five previous years. Unused amounts started accruing from 2018–19, and each year's unused amount expires after five years. For contributions made in 2026–27, you can use unused cap from 2021–22 to 2025–26, on top of the $32,500 general cap. The rule is most useful in a year when your taxable income is unusually high, for example because of a capital gain, a bonus or a return to work, because the deduction saves tax at the higher marginal rate.
This guide shows how to find your available amount, works through a full example and lists the conditions that catch people out. It builds on the step-by-step tax guide and the super caps guide. Figures are illustrative; this is general information, not financial advice.
Who can use it
- Your total super balance across all funds was under $500,000 at 30 June of the year before the contributions (for 2026–27 contributions, at 30 June 2026).
- You have unused concessional cap from one or more of the previous five years.
- You make the contributions as salary sacrifice, employer contributions or personal contributions you claim as a deduction (with an acknowledged notice of intent). There is no separate election; the ATO applies the carry-forward amounts automatically when it assesses your contributions.
You do not need to have had a balance under $500,000 in the years the unused amounts arose, only at the 30 June before you use them.
Finding your unused amounts
Log in to ATO online services through myGov and look under the super section for carry-forward concessional contributions. It shows the unused cap for each year and your total super balance. Funds report contributions after the end of each year, so the most recent year may not appear until later. Use the cap table:
| Year | General concessional cap |
|---|---|
| 2021–22 | $27,500 |
| 2022–23 | $27,500 |
| 2023–24 | $27,500 |
| 2024–25 | $30,000 |
| 2025–26 | $30,000 |
| 2026–27 | $32,500 |
Worked example
Illustrative person in 2026–27: salary $95,000, employer super guarantee 12% = $11,400, total super balance at 30 June 2026 of $320,000, no private hospital cover. In March 2027 they sell shares held for three years, producing a net capital gain of $80,000 after the 50% discount.
Step 1: unused cap from earlier years
| Year | Cap | Contributions made | Unused |
|---|---|---|---|
| 2021–22 | $27,500 | $12,000 | $15,500 |
| 2022–23 | $27,500 | $13,000 | $14,500 |
| 2023–24 | $27,500 | $14,000 | $13,500 |
| 2024–25 | $30,000 | $15,000 | $15,000 |
| 2025–26 | $30,000 | $16,000 | $14,000 |
| Total | $72,500 |
Available for 2026–27 = $32,500 + $72,500 = $105,000 of concessional contributions, less the $11,400 super guarantee = $93,600 of room.
Step 2: choose a contribution. They make a $60,000 personal contribution in May 2027, lodge a notice of intent and receive the fund's acknowledgment before lodging the return.
Step 3: compare the tax (2026–27 rates)
| Without contribution | With $60,000 deductible contribution | |
|---|---|---|
| Taxable income | $175,000 | $115,000 |
| Income tax | $31,020 + 37% × $40,000 = $45,820 | $4,020 + 30% × $70,000 = $25,020 |
| Medicare levy (2%) | $3,500 | $2,300 |
| Total | $49,320 | $27,320 |
Tax and levy saved: $22,000. Contributions tax in the fund: 15% × $60,000 = $9,000. Net benefit: $13,000, with the money preserved in super.
Step 4: which unused amounts are used. Total concessional contributions are $71,400. The 2026–27 cap covers $32,500, leaving $38,900 from carry-forward, applied oldest first: all of 2021–22 ($15,500), all of 2022–23 ($14,500) and $8,900 of 2023–24. The remaining $4,600 from 2023–24, plus 2024–25 and 2025–26 amounts, stay available for later years until they expire.
Side effects in the same example
- Division 293: income for Division 293 purposes ($115,000) plus low tax contributions ($71,400) = $186,400, below $250,000, so no extra tax. Someone with a larger gain could cross it; see Division 293.
- Medicare levy surcharge: reportable super contributions are added back, so income for MLS purposes is $175,000. Without hospital cover, this person is in the top surcharge tier in both scenarios, because the contribution does not bring them under the threshold. The 1.5% rate is applied to taxable income, so the surcharge would be about $2,625 without the contribution and about $1,725 with it, on top of the figures in the table. Check the surcharge rules before relying on the saving.
- HELP: the contribution is added back to repayment income, so a HELP repayment would not fall.
- Total super balance next year: the contribution increases the balance, which may affect future eligibility.
Mistakes to avoid
- Missing the notice of intent. Without a valid, acknowledged notice before you lodge or roll over the money, the deduction can be denied and the contribution becomes non-concessional, potentially creating an excess.
- Testing the wrong balance. It is the balance at the previous 30 June across all funds, including amounts in account-based pensions.
- Ignoring timing. The contribution counts when the fund receives it. A payment on 30 June that arrives on 2 July counts in the next year.
- Assuming expired years are still available. Amounts older than five years are gone.
FAQ
Do I have to apply to use carry-forward amounts?
No. The ATO applies them automatically when assessing your concessional contributions for the year.
Can I use carry-forward if my balance is $520,000?
Not in that year. If your balance falls below $500,000 at a later 30 June, you may be able to use any unexpired amounts then.
Does salary sacrifice count as using carry-forward?
Yes. Any concessional contribution above the general cap draws on unused amounts if you are eligible.
Is carry-forward available for non-concessional contributions?
No. Non-concessional contributions have the separate bring-forward rule.
Sources
- Australian Taxation Office — carry-forward concessional contributions, total super balance, notice of intent to claim a deduction
- Moneysmart — guidance on super contributions
- Federal Register of Legislation — Income Tax Assessment Act 1997, section 291-20
Related: salary sacrifice worked example, selling shares example, exceeding super caps.
