Carry-forward super contributions: catching up on unused cap
If you have not used your full concessional cap in recent years, you may be able to contribute more now. Here is how carry-forward works in 2026-27.
The concessional (before-tax) contributions cap is $32,500 for 2026-27. But if you have not used your full cap in recent years, you may be able to contribute more than that in a single year by drawing on your unused amounts. This is called carry-forward, and it is one of the most under-used super strategies.
How carry-forward works
Any concessional cap you did not use can be carried forward for up to five financial years and added to your cap in a later year. So a run of years where you only received employer contributions can leave a sizeable amount of unused cap waiting to be used.
The $500,000 rule
There is one key condition: your total super balance must be under $500,000 at 30 June of the year before you want to use the carried-forward amount. Above that, you are limited to the standard annual cap.
Worked example
Emma received only employer super for the past three years, leaving about $40,000 of unused concessional cap. This year she sells an investment property and has a large taxable gain. Because her super balance is under $500,000, she can make a concessional contribution of her $32,500 cap plus the $40,000 carried forward — over $70,000 in one year — taxed at 15% in super instead of her marginal rate on the gain.
Why it is useful
Carry-forward shines in a one-off high-income year — a capital gain, a bonus, an inheritance realised, or returning to full-time work after a break. It lets you soak up income at 15% that would otherwise be taxed at up to 47%.
Model your salary sacrifice
See how a larger concessional contribution affects your take-home and tax, with the 2026-27 cap built in.
This is general information, not personal advice. Large contributions can trigger Division 293 for high earners — see our Division 293 guide.
Frequently asked questions
How many years of unused cap can I carry forward?
Up to five financial years. Unused amounts older than that expire and cannot be used.
What is the total super balance limit?
Your total super balance must be under $500,000 at 30 June of the previous year to use carried-forward cap. Above that, only the standard annual cap applies.
Does employer super count toward the cap?
Yes. Your concessional cap includes employer Super Guarantee, salary sacrifice and personal deductible contributions combined — carry-forward is about the portion you did not use.
Can carry-forward trigger Division 293?
It can. A large concessional contribution counts toward the $250,000 Division 293 test, so a big catch-up year can attract the extra 15% for high earners.