Carry-forward contributions
Unused concessional cap from the past five years, usable in a single later year to make a larger contribution.
If you do not use your full concessional cap in a year, the unused portion can be carried forward for up to five years. This lets people with interrupted or uneven incomes catch up later.
To use carried-forward amounts, your total super balance must be below the threshold at the end of the previous financial year. Unused amounts expire on a rolling basis after five years.
The most valuable use is in a year with unusually high income — selling an investment property, receiving a bonus, or realising a large capital gain. A large deductible contribution in that year can offset income taxed at the top rate.
Offsetting a capital gain
You sell shares producing a $60,000 taxable gain. Using three years of unused cap, a $70,000 deductible contribution can absorb most of that gain, converting tax at 45% into tax at 15%.
The bit people get wrong
Carried-forward amounts expire after five years on a first-in, first-out basis. People planning to use them 'eventually' often find the earliest and largest unused amounts have already lapsed.
Common questions
How do I check my unused cap?
Your available carry-forward amount is shown in myGov under the ATO's super section. It updates after funds report contributions, so it can lag by some months.
Who benefits most from carry-forward?
People returning from parental leave or a career break, the self-employed with variable income, and anyone facing a one-off spike in taxable income.
Does my employer's contribution use up the cap first?
Yes. Super Guarantee contributions count against the current year's cap before any carried-forward amount is drawn on.