Claiming a tax deduction for carry forward concessional contributions

From 1 July 2018, individuals who don’t fully use their basic concessional contributions cap in a financial year, accrue an unused concessional contributions cap amount.

Unused concessional cap amounts are available to carry forward and (if eligible) apply (use) in any of the following five financial years.

If an unused concessional cap amount accrues during a financial year and is not then applied in any of the five following financial years, it expires.

USING CARRY-FORWARD CONCESSIONAL CONTRIBUTIONS

A individual can carry forward and apply available unused concessional cap amounts from any of the previous five financial years to increase their concessional cap in the current financial year if:

their concessional contributions for the current financial year exceed the basic concessional cap (currently $27,500), and
their total superannuation balance (TSB) just prior to the start of the current financial year is less than $500,000.

Where an eligible member makes concessional contributions that exceed the basic concessional cap, the amount necessary to accommodate the contribution is taken from the earliest unused concessional cap amounts within the five-year period first.

Last updated in September 2022

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