Carry-Forward Concessional Contributions: A Worked Example

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Most people who could use carry-forward concessional contributions have no idea how much unused cap space they’re sitting on.

The mechanism has existed since the 2018–19 financial year, but because it requires tracking five years of contribution history against five different annual caps, most people either overestimate what they can contribute or never use it at all. This post works through exactly how to calculate it.

Carry-Forward Concessional Contributions: The Rule, Precisely

Anyone with a total super balance under $500,000 (measured at 30 June of the previous financial year) can carry forward the unused portion of their concessional contributions cap from each of the previous five financial years, and use it — on top of the current year’s own cap — in a single contribution, still taxed at the standard 15% rate.

Unused amounts expire after five years on a rolling basis — the oldest year drops off each time a new year is added. The ATO’s concessional contributions cap page is the authoritative source for the current annual figure this mechanism builds on.

Carry-forward concessional contributions only work if the unused cap space actually exists — tracking the last five years accurately is the entire exercise.

Working Through an Example

Concessional caps by year (indexed periodically): $25,000 (2021–22), $27,500 (2022–23 and 2023–24), $30,000 (2024–25 and 2025–26), $32,500 (2026–27).

Suppose someone contributed only their employer’s Superannuation Guarantee each year — no extra salary sacrifice — and their total super balance is under $500,000:

In this illustrative case, roughly $65,500 in unused cap space has accumulated across the five prior years. Added to the 2026–27 cap of $32,500, a single concessional contribution of up to roughly $98,000 could be made in 2026–27 — all taxed at 15% on entry, rather than the individual’s marginal tax rate.

These figures are illustrative only — actual unused cap space depends on each individual’s real contribution history, which the ATO tracks and reports via myGov / ATO Online Services.

Where to Find the Real Number

The ATO calculates and displays actual carry-forward amounts directly in ATO Online Services (accessed through myGov), under the concessional contributions section — no manual five-year reconstruction is required in practice; the worked example above exists to illustrate the mechanism, not to replace checking the real figure.

Who This Actually Suits

The provision is most useful for people with irregular income (a bonus year, a business sale, a redundancy payout) who want to contribute a large lump sum at the concessional tax rate, or for anyone who spent early career years on a lower salary that left cap space unused each year. It requires available cash to make the contribution — the carry-forward mechanism creates the cap room, not the money itself. Moneysmart’s contributions optimiser is a useful starting point for modelling whether carry-forward concessional contributions make sense against other contribution strategies.

Frequently Asked Questions

How far back can I carry forward unused concessional contributions?

Five financial years on a rolling basis, starting from the 2018–19 year the provision began (meaning by 2026-27, all five prior years the ATO would count are within the standard mechanism).

Does carry-forward affect the $500,000 balance test differently each year?

Yes — eligibility is tested using the total super balance at 30 June of the financial year immediately before the one in which the carry-forward amount is used, not an average or a different reference point.

Where do I check my actual unused cap amount?

ATO Online Services via myGov displays it directly under the superannuation section — this is the authoritative figure, not a manual calculation.

Concessional contribution caps and the carry-forward mechanism are set by legislation and subject to change — figures in this post reflect rules and cap amounts confirmed current as of August 2026. This content is specific to Australian superannuation law.

Written by The Founder — currently employed full-time and building toward $20,000/month in passive income.

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