Concessional contributions carry forward
4.3 Concessional contributions carry forward
From 1 July 2018, a member is entitled to contribute 'unused' concessional contribution amounts, i.e., where concessional contributions have not exceeded the concessional contribution cap in previous financial years. Only unused amounts accruing from the 2018/19 financial year onwards can be carried forward. Members can access their unused concessional contributions caps on a rolling basis for five years.
To be eligible, a member's total superannuation balance must be less than $500,000 on 30 June of the previous financial year,
A member's unused concessional contribution cap for a financial year is the amount by which their concessional contributions for the year falls short of their concessional contributions cap for the year, under s 292-20(6) ITAA97.
A member's concessional contribution cap cannot be increased by more than the amount by which they would otherwise exceed the concessional contributions cap. Hence, only the exact amount of unused concessional contributions cap that is necessary is used, and any remaining unapplied unused concessional contribution cap is preserved to be carried forward for another year.
Eligibility to access unused concessional contributions
A member's total superannuation balance can affect their eligibility to make additional concessional contributions above the annual cap by accessing their unused cap accrued from previous financial years. If a member's total superannuation balance is greater than $500,000, the unused cap can still be accumulated up to five years and used later when the balance falls below $500,000.
|Unused concessional cap carry forward|
|The first year a member is entitled to carry forward unused amounts is the 2019-20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.|
|General concessional contributions cap:||$25,000||$25,000||$25,000||$25,000||$27,500|
|Total unused available cap accrued:||Not applicable||$0||$22,000||$44,000||$69,000|
|Maximum cap (maximum possible contribution):||$25,000||$25,000||$47,000||$25,000||$96,500|
|Superannuation balance 30 June the prior year:||Not applicable||$480,000||$490,000||$505,000||$490,000|
|Concessional contributions made:||nil||$3,000||$3,000||nil||nil|
|Unused concessional cap amount accrued in the relevant financial year:||$0||$22,000||$22,000||$25,000||$27,500|
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Last modified: Monday, April 26, 2021