[Tax Saving] Utilise Your Unused Five-Year Concessional Superannuation Contributions Before 30 June 2026

No.1

Will expire after five years

As the end of the 2025–26 financial year approaches, individuals with higher income or significant cash reserves should consider whether they can take advantage of the carry-forward concessional contribution rules. These rules may allow eligible taxpayers to make additional deductible superannuation contributions by utilising unused concessional contribution caps accumulated over the previous five years.

For many taxpayers, 30 June 2026 represents an important deadline, as unused amounts from the 2020–21 financial year will expire if they are not used by that date.

No.2

What Are Carry-Forward Concessional Contributions?

Since 1 July 2018, individuals have been able to carry forward any unused portion of their annual concessional contribution cap for up to five financial years.

Concessional contributions generally include:

• Employer superannuation guarantee contributions;

• Salary sacrifice contributions; and

• Personal contributions for which a tax deduction is claimed.

The annual concessional contribution cap is currently $30,000 for the 2024–25 and 2025–26 financial years. Earlier years had lower caps:

• 2020–21: $25,000

• 2021–22: $27,500

• 2022–23: $27,500

• 2023–24: $27,500

• 2024–25: $30,000

• 2025–26: $30,000

If your concessional contributions in a particular year were below the applicable cap, the unused amount may be carried forward and used in a later year. Unused amounts are applied on a first-in, first-out basis. Therefore, any unused cap from the 2020–21 financial year will expire after 30 June 2026 if it is not utilised.

Taxpayers who have consistently contributed less than the annual cap may have accumulated substantial unused amounts.

No.3

Tax saving strategy

Additional concessional contributions can provide significant tax benefits.

For most individuals, deductible superannuation contributions are taxed at only 15% within the fund. By contrast, employment or investment income may otherwise be taxed at marginal rates of up to 47% (including Medicare levy).

Accordingly, making additional concessional contributions can:

• Reduce taxable income;

• Increase retirement savings;

• Generate immediate tax deductions; and

• Improve overall tax efficiency.

No.4

Example

Assume Elizabeth's total superannuation balance at 30 June 2025 is $200,000.

Over the period from 2020–21 to 2024–25, she accumulated $80,000 in unused concessional contributions.

During the 2025–26 financial year, her employer makes superannuation guarantee contributions of $10,000.

Elizabeth may therefore be able to make an additional personal deductible contribution of up to:

Current year cap ($30,000) + Unused carried-forward amounts ($80,000) - Employer contributions ($10,000) = total deductible contributions of up to $100,000 for the year.

Assuming Elizabeth's marginal tax rate is 47%, this strategy could produce substantial income tax savings while boosting her retirement benefits.

No.5

How to act upon?

1. Check available unused concessional contribution amounts through ATO Online Services or MyGov

   
   

2. Estimate employer superannuation contributions for the 2025–26 financial year.

   
   

3. Determine the optimal amount of additional deductible contributions.

   
   

4. Ensure contributions are received by the fund before 30 June 2026. Waiting until the final days of June can be risky because processing delays may result in contributions being allocated after year-end.

   
   

5. Submit the required "Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions" notice to claim a deduction if necessary

   
   

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