Unused concessional cap carry forward

Unused Concessional Cap Carry Forward is a rule in Australia that allows you to make extra contributions to your superannuation (super) fund if you haven't reached your yearly contribution limit in previous years. It's like having a savings account for your retirement, but with special rules.

How Does “Unused concessional cap carry forward Work?

Every year, there’s a limit to how much money you can put into your super fund without paying extra tax. This limit is called the concessional cap. If you don’t use up all your concessional cap in a year, you can carry forward the unused amount for up to five years. This means you can contribute more than the usual limit in a later year without getting penalized.

Why Is It Important?

Unused Concessional Cap Carry Forward can be helpful if you have a fluctuating income or if you haven’t been able to contribute much to your super fund in the past. It gives you the chance to catch up on your retirement savings when you have more money available.

Who Can Use It?

Not everyone can take advantage of Unused Concessional Cap Carry Forward. You must meet certain criteria set by the Australian Taxation Office (ATO). Generally, you need to have a total super balance of less than $500,000 at the end of the previous financial year.


Let’s say your concessional cap is $25,000 per year, but last year you only contributed $20,000 to your super fund. This means you have $5,000 of unused concessional cap from last year. If you’re eligible, you can carry forward this $5,000 and add it to this year’s cap. So, this year, you can contribute up to $30,000 without paying extra tax.

Keep in Mind:

It’s essential to keep track of your unused concessional cap and understand the rules around it. While it can boost your retirement savings, contributing too much can lead to additional tax or penalties.


Unused Concessional Cap Carry Forward is a valuable tool for Australians to build their retirement savings. By understanding how it works and whether you’re eligible, you can make the most of this opportunity to secure your financial future.

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