From the 1st July 2018 an individual with a Total Superannuation Balance of less than $500,000 can carry forward any unused concessional contribution cap of up to $25,000 per annum for up to 5 years.

This is referred to the “Unused concessional cap carry forward”. 

In order to determine if your Total Superannuation Balance is less than $500,000 you refer to your balance at the 30th June  of prior year, if your balance at less than $500,000, you can utilise the cap carry forward rule.

This is best demonstrated with an example:


The 2019-20 is the first year it can be utilised.

How could this apply to me?

Salary $100,000 p.a.

Should the tax payer make an additional concessional contribution in the 2020 year of $31,000,

The estimated tax saving is as follows:




2020 - After applying 'cap carry forward' rule


$  100,000

$  100,000

$  100,000

SGC @ 9.50%

$      9,500

$      9,500

$      9,500

Additional Concessional Contributions



$    31,000

Unused Concessional Contributions Cap

$    15,500

$    15,500


Taxable Income

$  100,000

$  100,000

$    69,000

Tax on Taxable Income

$    26,632

$    26,632

$    15,352

Tax Saving



$    11,280


It is important to note that:

concessional contribution include all of the followings,

Employer Mandated Contribution (9.5% Super guarantee)

Employer Non-Mandated Contribution (Salary Sacrifice)

Member Concessional Contribution

The work test will still apply if you are over the age of 65 at the time of making a contribution. That is you must work at least 40 hours during a consecutive 30-day period each financial year in order for your fund to accept a personal super contribution for which you can claim a deduction.

Important Warning and Disclaimer

This information is provided solely for general information purposes and is not intended as professional advice. Readers should not act on the information contained therein without proper advice from a suitably qualified professional. CSCG, its representatives and the author(s) expressly disclaim all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on the contents of this information.