How it works

The concessional contributions cap is currently $25,000 pa. From 1 July 2018, eligible members who contribute less than the cap will be able to ‘carry-forward’ any unused amounts for up to five years. This may allow you to make additional pre-tax contributions that would have otherwise exceeded the cap.

As it relates to contributions made from 1 July 2018, the first year in which you can access your unused concessional contributions is 2019-20. Unfortunately you won’t be able to access the unused portions of your cap from before 1 July 2018.

Eligibility

To be eligible, your total superannuation balance at 30 June of the previous financial year must be less than $500,000. If you have multiple super accounts, the total of all accounts combined must be less than $500,000.

Example from the Australian Taxation Office (ATO):
Kate's employer contributions are $10,000 in 2018-19 and her total superannuation balance at 30 June 2018 is less than $500,000. In 2018–19, Kate makes $10,000 in concessional contributions (that’s the contributions her employer has paid).

This leaves an unused amount of the concessional contribution cap of $15,000, which Kate can carry forward for up to five years to increase her concessional contribution cap.

In 2019–20, in addition to her normal $25,000 concessional cap, Kate can use the $15,000 of unused cap from the previous year. Kate’s total concessional cap for 2019–20 is $40,000.

Calculating your contributions

Pre-tax (concessional) contributions include employer paid super, amounts you salary sacrifice and post-tax contributions for which you have claimed a tax deduction.

If you have multiple super accounts, you’ll need to include pre-tax contributions that have been made into all of your accounts when calculating any ‘carry forward’ amount you believe you are eligible for.

Need help developing a tax effective strategy?

At TelstraSuper we’re here to help you build a secure financial future. TelstraSuper Financial Planning has a team of phone based Advisers who can provide you with simple advice to help you work out how to maximise your tax savings through super. If you’d like to discuss growing your super or if you have any other financial advice queries contact us on 1300 033 166 or fill in our online contact form. There's no additional cost for our phone based advice as this is included in your TelstraSuper membership.