Key Highlights

  • Unused concessional cap space from 2021–22 expires after 30 June 2027.
  • Eligible members generally need a total super balance below $500,000 at the relevant prior 30 June.
  • Unused concessional amounts can be carried forward for up to five years.
  • Employer payments, salary sacrifice and deductible personal contributions count towards concessional contributions.

Super fund members who did not use their full concessional contributions cap in 2021–22 have until 30 June 2027 to catch up. After that date, the unused amount from that year expires under the carry-forward rules. The 2026–27 cap is $32,500, and eligible members can add up to five years of unused cap space to it. For people with uneven incomes, the coming months may be the last chance to use that room.

How carry-forward concessional contributions work

Concessional contributions are the before-tax contributions that go into super. They include employer Superannuation Guarantee payments, salary sacrifice and personal contributions for which a member claims a tax deduction. They are generally taxed at 15% inside the fund.

Each year there is a cap on these contributions. The carry-forward rule, which is ENACTED law and has applied since 2019–20, lets eligible members use cap amounts they did not use in earlier years. Unused amounts from 2018–19 onwards can be carried forward for up to five years, after which they expire.

That five-year window is why 30 June 2027 matters. Unused cap space from 2021–22 has been available in each year from 2022–23 to 2026–27. Once 2026–27 ends, it can no longer be used.

The concessional cap has changed several times over the five-year window, so the unused amount for each year depends on that year's cap.

The cap was $27,500 in 2021–22, and it stayed at that level for 2022–23 and 2023–24. It was $30,000 in 2024–25 and 2025–26. For 2026–27, the cap is $32,500.

Unused amounts are generally applied from the earliest year first. In practice, a member who makes extra contributions in 2026–27 would use up the expiring 2021–22 amount before later years. That ordering helps members make sure the oldest room is used before it disappears.

The $500,000 balance test

Not everyone can use carried-forward amounts. A member's total superannuation balance must be under $500,000 at 30 June of the previous financial year.

To use carried-forward amounts in 2026–27, the relevant date is 30 June 2026. A member whose total balance was $500,000 or more on that date cannot use carry-forward amounts this year, even if the balance has since fallen.

The total superannuation balance generally covers money across all of a person's super accounts, not just one fund. The ATO's online services show the figure and the carry-forward amounts available, which can help members check before contributing.

Hypothetical example: using the expiring room

Hypothetical example: Priya had a total superannuation balance of $380,000 at 30 June 2026. She has never used carry-forward amounts. Her concessional contributions and unused cap space for the past five years were:

- 2021–22: $12,000 contributed, $15,500 unused - 2022–23: $14,000 contributed, $13,500 unused - 2023–24: $15,000 contributed, $12,500 unused - 2024–25: $16,000 contributed, $14,000 unused - 2025–26: $17,000 contributed, $13,000 unused

Her total carried-forward amount is $68,500. Adding the $32,500 cap for 2026–27, she could have up to $101,000 of concessional contributions this year without exceeding her cap.

Priya earns $130,000, so her employer's Superannuation Guarantee at 12% is $15,600. That leaves $85,400 of room.

She makes a $40,000 personal contribution and claims a deduction. Her total concessional contributions for 2026–27 are $55,600. That uses the full $32,500 cap plus $23,100 of carried-forward amounts. Applying the oldest first, the whole $15,500 from 2021–22 is used, plus $7,600 from 2022–23, leaving $5,900 of that year's room for later.

Her deduction reduces her Taxable Income from $130,000 to $90,000, all within the 30% bracket. Ignoring offsets and other factors, the deduction saves about $12,800 in income tax and Medicare levy (32%). The fund pays $6,000 in contributions tax (15%). The net difference is about $6,800.

If she made no extra contribution, the $15,500 from 2021–22 would expire after 30 June 2027.

Traps to check before contributing

A personal contribution is not deductible automatically. Members generally need to give their fund a valid notice of intent to claim a deduction and receive an acknowledgement before lodging their return, and before withdrawing or rolling over the money.

Higher earners also need to watch Division 293 tax. It adds an extra 15% on concessional contributions where income plus concessional contributions exceed $250,000. In Priya's case, $90,000 plus $55,600 is $145,600, well below that level.

Timing also matters. Contributions count in the year the fund receives them, not the year they are made. Payday Super has applied since 1 July 2026, requiring employers to pay Superannuation Guarantee within seven Business days of payday. This should make employer contributions more predictable, but members planning a large personal contribution near 30 June 2027 should allow time for it to reach the fund.

Contributions above the available cap are counted as excess concessional contributions and included in assessable income. A smaller contribution is often safer if the numbers are uncertain.

Contributions are preserved until a condition of release is met, generally retirement after preservation age. Money put in now is generally not accessible for many years.

Who stands to benefit most

Carry-forward contributions tend to suit people whose Earnings vary. That includes those returning from parental leave or a career break, part-time workers moving to full-time roles and self-employed people with a encouraging year.

They can also suit people expecting a large one-off taxable amount, such as a capital gain, because a deductible contribution in the same year can reduce taxable income. The new CGT settings from 1 July 2027, which replace the 50% discount with indexation and a 30% minimum tax for gains accruing from that date, may prompt some investors to review the timing of asset sales.

Whether a catch-up contribution makes sense depends on individual circumstances, including cash flow, age and other financial priorities.

What to watch

The 2021–22 unused cap space expires after 30 June 2027. Members wanting to use it need contributions received by their fund by that date.

The total superannuation balance at 30 June 2027 will determine eligibility to use carry-forward amounts in 2027–28.

The Mid-Year Economic and Fiscal Outlook is due in December. The broader CGT changes start on 1 July 2027.

Members can check their carry-forward amounts and total balance through ATO online services before deciding how much to contribute.