What is the concessional contributions cap for 2025–26 and 2026–27?

The concessional contributions cap is $30,000 for 2025–26, and rises to $32,500 from 1 July 2026 (2026–27 onward, subject to future indexation). The carry-forward rule lets eligible members contribute above this standard cap, up to the standard cap plus their total available unused cap balance.

Do I need to do anything special to claim a tax deduction on a catch-up contribution?

If you make a personal contribution to super (from your own bank account, not via payroll), you must lodge a Notice of Intent to Claim a Deduction with your super fund and receive written acknowledgement before you lodge your tax return. Without this notice, the contribution is treated as non-concessional (after-tax) and you lose the deduction entirely. Employer SG and salary sacrifice contributions are concessional automatically.

What happens to the carry-forward rule after Division 296 starts?

Division 296 (from 1 July 2026) adds extra tax on earnings for total super balances above $3 million. For members with TSB well below $3 million, Division 296 does not change the benefit of using carry-forward contributions — the tax saving from contributing at 15% versus your marginal rate still applies. For members approaching $3 million, additional contributions can push more future earnings into the Division 296 tax environment, and the decision should be modelled with an adviser.

Evidence-backed. Sourced from ATO official guidance on concessional contributions and carry-forward rules, Grant Thornton, SuperGuide, Heffron, and Accountants Daily on 2026 cap changes. General information only — not financial advice. Contribution strategies depend on individual income, balance, fund type and tax position; consult a licensed financial adviser or registered tax agent before making large catch-up contributions. Last updated: June 2026.

⚡ Key Takeaways

2025–26 is the last year to use unused concessional cap from 2020–21. The carry-forward rule allows unused portions of your concessional cap from up to five prior financial years (starting from 2018–19) to be contributed in a later year — but amounts expire permanently after five years. If you haven’t used your 2020–21 cap, 30 June 2026 is your last chance. ^[1][4]
To be eligible, your total super balance at 30 June 2025 must be under $500,000. If it is, you can check your exact available carry-forward amount right now in myGov → ATO → Super → Information → Carry-forward concessional contributions. The ATO applies unused amounts automatically — oldest year first — when you contribute above the standard cap. ^[1][8]
The concessional cap rises to $32,500 from 1 July 2026 (up from $30,000 in 2025–26). Non-concessional cap increases from $120,000 to $130,000, and the bring-forward limit from $360,000 to $390,000. These changes create a new higher baseline for future contributions — but they don’t revive expired carry-forward amounts from past years. ^[2][3]
The tax benefit of using carry-forward is real and significant. Concessional contributions (employer SG, salary sacrifice, personal deductible contributions) are taxed at 15% in the fund rather than your marginal rate (32.5%–45%). On a 37% marginal rate, every extra dollar you put into super as a concessional contribution saves approximately 22 cents in tax — plus the amount then compounds inside super. ^[1][4]
Division 296 (from 1 July 2026) adds extra tax on earnings for balances above $3 million. For most Australians with TSB well below $3 million, this is irrelevant for the carry-forward decision — and 2025–26 remains the most valuable catch-up window available. For those approaching $3 million, the decision is more nuanced and should be modelled with an adviser. ^[6][12]

Your Super Is Missing Out: Use the Carry-Forward Catch-Up Rule Before 30 June 2026

Q: What is the carry-forward concessional contributions rule?

The carry-forward rule lets Australians with a total super balance under $500,000 at the prior 30 June use unused portions of their concessional contributions cap from up to five prior financial years. It has been available since 1 July 2018. Unused amounts expire after five years — with 2025–26 being the last year to use any unused cap from 2020–21.

By The Fine Print editorial team | Last updated: June 2026 | 13 min read | ⚠️ Not financial advice

Since 2018, the ATO has been quietly letting Australians stockpile unused super caps for a future catch-up contribution. The rule is called carry-forward concessional contributions — and most people have never heard of it, never checked what they have available, and are about to let years of it expire permanently. Here’s the problem: unused concessional cap amounts from prior years expire after five years. That means 2025–26 is the last year to use your unused cap from 2020–21. When 30 June 2026 passes, that specific unused amount — which could be worth thousands in tax savings and extra years of compounding — disappears forever. For anyone with a total super balance under $500,000 who has been under-contributing to super since 2018, the next few weeks represent a genuinely closing window. This guide explains exactly how the rule works, what’s at stake, and the three steps to use it before the deadline.

📋 What’s in This Guide

How the carry-forward rule actually works — and why it matters in 2026
Four ways people leave money on the table
The 2026–27 cap changes and what they mean for your strategy
Your three-step action plan
Frequently asked questions

How the Carry-Forward Rule Actually Works — and Why 2026 is the Cliff

The mechanics:

Since 1 July 2018, Australians with a total super balance (TSB) under $500,000 at the prior 30 June can carry forward any unused portions of their concessional contributions cap for up to five financial years. ^[1]
The standard concessional cap has been: $25,000 (2018–19 to 2020–21), $27,500 (2021–22 to 2023–24), $30,000 (2024–25 and 2025–26), and will be $32,500 from 1 July 2026. ^[1][2][3]
The rule works automatically: when you contribute above the standard cap in a year and are eligible, the ATO first applies your oldest available unused cap — you aren’t penalised for exceeding the standard cap as long as you stay within the standard cap plus available carry-forward. ^[1]
Unused amounts expire after exactly five financial years. The oldest year is always applied first. ^[1][4]

The 2026 expiry cliff:

2024–25 was the last year to use unused 2019–20 cap.
2025–26 is the last year to use unused 2020–21 cap — after 30 June 2026, that amount expires permanently. ^[1][4]
2026–27 will be the last year to use unused 2021–22 cap. ^[1]
Grant Thornton, SuperGuide and other advisers are explicitly flagging 2025–26 as a “use it or lose it” year for anyone who has been under-contributing since 2018. ^[4][14]

How to check your available carry-forward balance right now:

Log into myGov → ATO → Super → Information → Carry-forward concessional contributions.
The ATO shows your available unused cap for each year from 2018–19 onwards. ^[1][8]
Confirm your TSB at 30 June 2025 was under $500,000 — if it wasn’t, you can’t use carry-forward in 2025–26. ^[1]

Four Ways People Leave Money on the Table

1. Not knowing the carry-forward amounts are even there

The carry-forward rule has been operational since 1 July 2018, but it has received almost no public attention compared to announcements like SG rate increases or Payday Super. Most Australians who have been in the workforce since 2018 and haven’t contributed beyond the standard SG amounts have unused concessional cap sitting in their ATO account — potentially thousands of dollars of it, accumulated across years when their total contributions were below the cap. These are not hypothetical savings. Every year of unused cap represents a real opportunity to move money into the concessional tax environment (15% tax on contributions and earnings inside the fund) instead of having it taxed at a marginal rate of 32.5%–45% in your hands. The first way people leave money on the table is simply by not checking whether this opportunity exists for them. It takes 60 seconds on myGov to find out. ^[1][4][8]

2. Letting the oldest years expire while waiting for “the right moment”

The five-year rolling window means procrastination is expensive in a very specific way. Every 30 June, the oldest year in your carry-forward balance expires permanently — and the ATO always applies the oldest available year first when you contribute above the standard cap. This creates a trap for people who know about carry-forward but plan to “use it later when cashflow is better.” If you contribute only slightly above the standard cap each year, you might be using your carry-forward — but you’re using your oldest amounts first, which means the strategy only works if you’re actively managing the total. People who don’t understand the oldest-first rule end up with more recent unused years intact while the 2019–20 and 2020–21 amounts have already permanently expired. The window is closing now, not at some abstract future point. ^[1][4]

3. Not lodging the Notice of Intent — and losing the tax deduction

A carry-forward contribution only delivers its full tax benefit if it’s treated as a concessional (before-tax) contribution. For employer SG and salary sacrifice, this is automatic. For personal contributions — which is often how self-employed or partially-self-employed people make catch-up contributions — it requires one extra step: lodge a Notice of Intent to Claim a Deduction with your super fund and receive written acknowledgement before you lodge your tax return. Many people contribute to super and forget this step. The contribution is received by the fund, the ATO shows it against your cap, but because no notice was lodged it’s treated as non-concessional (after-tax). You used up your carry-forward cap without getting the tax deduction it was supposed to generate. The fix is simple — do not make a personal super contribution without immediately scheduling the notice — but the mistake is common and cannot be reversed after the tax return has been lodged. ^[1][4][9]

4. Not accounting for existing concessional contributions before making catch-up contributions

Carry-forward allows you to exceed the standard concessional cap — but you cannot exceed the standard cap plus your total available carry-forward balance. People who receive employer SG contributions and then make a large personal contribution to “use the carry-forward” sometimes fail to account for the SG already received in the same year. The total concessional contributions for the year (employer SG + salary sacrifice + personal deductible) must stay within the combined limit. Exceeding it results in the excess being included in your assessable income and taxed at your marginal rate (plus a charge), erasing the benefit. Before making a catch-up contribution, check your year-to-date concessional contributions figure in myGov to confirm your headroom. ATO community Q&As from 2026 confirm many people are asking exactly this question — and the answer requires checking the actual numbers, not estimating them. ^[1][8][9]

The 2026–27 Cap Changes and What They Mean for Your Strategy

Concessional cap: $30,000 in 2025–26 → $32,500 from 1 July 2026. ^[2][3]
Non-concessional cap: $120,000 in 2025–26 → $130,000 from 1 July 2026. ^[5][7]
Bring-forward limit: $360,000 (3×$120k) → $390,000 (3×$130k) from 1 July 2026. ^[3][7]
Transfer balance cap: increases to $2.1 million from 1 July 2026. This figure also sets the TSB threshold for NCC eligibility. ^[5]
Division 296 (from 1 July 2026): extra 15% tax on earnings attributable to TSB above $3 million. For members approaching $3M, the contribution decision is more complex — more in super may push future earnings into a higher effective tax environment. For balances well below $3M, the catch-up opportunity is straightforward. ^[6][12]
Bring-forward already triggered in 2024–25 or 2025–26: if you’ve already triggered a 3-year bring-forward using the $120,000 cap, you cannot access the higher $130,000 cap until the bring-forward period ends. ^[3]

✅ Your Three-Step Action Plan

Action 1: Check exactly how much carry-forward you have — today

Log into myGov → ATO → Super → Information → Carry-forward concessional contributions. The ATO shows your available unused cap for each financial year from 2018–19 onwards, with clear labels on which amounts expire after 30 June 2026. Write down two figures: your total available carry-forward balance, and specifically how much of that expires on 30 June 2026 (the 2020–21 amount). Then confirm one critical fact: was your total super balance at 30 June 2025 under $500,000? You can check this in your fund’s member portal or annual statement. If yes, you’re eligible. If no, you can’t use carry-forward for 2025–26 — but the rule may reset in a future year if your balance falls below the threshold. This step takes five minutes and gives you the actual numbers you need to decide whether to act before 30 June 2026. Without these numbers, any contribution decision is guesswork. ^[1][8]

Action 2: Calculate and contribute before 30 June 2026 — with the paperwork done right

Once you know your carry-forward balance and eligibility, the second step is calculating how much to contribute and executing it correctly. Step one: check your year-to-date concessional contributions in myGov — this shows employer SG already received, salary sacrifice paid, and any personal contributions already lodged. Step two: subtract your year-to-date contributions from the $30,000 standard cap plus your available carry-forward to get your maximum possible additional contribution. Step three: decide what you can actually afford to contribute before 30 June given your cashflow. The goal is to use as much of your 2020–21 unused cap (the expiring amount) as possible, within your financial capacity. Step four — critical — make the contribution to your fund. If you’re making a personal contribution (i.e. from your bank account rather than via payroll), lodge a Notice of Intent to Claim a Deduction with your fund immediately after the contribution is received, and obtain written acknowledgement before you lodge your 2025–26 tax return. Without this notice, the contribution is non-concessional and you lose the deduction. ^[1][9][4]

Action 3: Reset your 2026–27 strategy for higher caps and Division 296

After 30 June 2026, set a new annual super contribution target using the higher $32,500 concessional cap from 1 July 2026. For most workers, this means treating 12% of income as the employee SG benchmark — and then topping up via salary sacrifice or personal contributions to reach the $32,500 cap if your tax position makes this worthwhile. If your TSB is comfortably below $3 million, Division 296 is not currently relevant to your contribution decisions, and the higher cap is unambiguously better than the previous one. If your TSB is approaching $3 million, model the interaction between additional contributions and Division 296’s 15% earnings tax with an adviser before committing to large contributions. The non-concessional bring-forward of $390,000 (three-year) from 2026–27 onwards provides a separate mechanism for members who want to move large after-tax amounts into super, subject to the TSB thresholds at the relevant 30 June. ^[2][3][6][5]

❓ Frequently Asked Questions

What is the carry-forward concessional contributions rule?

It lets Australians with TSB under $500,000 use unused concessional cap amounts from up to five prior financial years. Available since 1 July 2018. Unused amounts expire after five years — 2025–26 is the last year to use unused 2020–21 cap. ^[1][4]

How do I check my carry-forward balance?

myGov → ATO → Super → Information → Carry-forward concessional contributions. The ATO shows available unused cap per year from 2018–19 onwards, plus your year-to-date concessional contributions so you can calculate headroom. ^[1][8]

What are the concessional caps for 2025–26 and 2026–27?

$30,000 in 2025–26; $32,500 from 1 July 2026. Carry-forward lets eligible members exceed the standard cap up to the standard cap plus total available unused balance. ^[1][2][3]

Do I need to do anything special to claim the tax deduction?

For personal contributions: yes. Lodge a Notice of Intent to Claim a Deduction with your fund and get written acknowledgement before lodging your tax return. Without this, the contribution is non-concessional and you lose the deduction. Employer SG and salary sacrifice are concessional automatically. ^[1][9]

Does Division 296 affect the carry-forward decision?

Only if your TSB is approaching or above $3 million. For balances well below $3M, contributing concessionally still saves you the difference between your marginal rate and 15%. For those near the $3M threshold, model the interaction with an adviser before contributing large amounts. ^[6][12]

⚖️ The Fine Print Verdict

The carry-forward rule is one of the most underused features in the Australian super system. Since 2018, the ATO has let people stockpile unused contribution capacity for a future catch-up — but most haven’t checked whether they have any. In 2025–26, that oversight becomes genuinely expensive. The unused cap from 2020–21 expires permanently on 30 June 2026. For anyone with a TSB under $500,000 who has been contributing below the cap since 2018, this is a real “use it or lose it” window — not a marketing slogan. The tax math is clear: contributing at 15% in the fund versus paying your marginal rate on the same money is a significant difference. The administrative steps — check your carry-forward balance in myGov, contribute before 30 June, lodge the Notice of Intent — are not complicated. What prevents people from acting is not complexity; it’s not knowing the clock is ticking. Now you do.

👉 Log into myGov right now: ATO → Super → Information → Carry-forward concessional contributions. If you have unused cap from 2020–21, you have until 30 June 2026 to use it.

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📚 Sources & References

ATO, “Concessional contributions cap,” ato.gov.au
Accountants Daily, “Contribution caps set to increase for 2026–27,” accountantsdaily.com.au
Heffron, “What’s changing for super contribution caps and bring-forward thresholds from 1 July 2026,” heffron.com.au
SuperGuide, “Carry-forward contributions,” superguide.com.au
Morningstar, “Key changes for 2026–27 super thresholds,” morningstar.com.au
ASFA, “Explainer: new super tax legislation introduced to Parliament,” superannuation.asn.au
SavingsMate, “Super contribution caps July 2026,” savingsmate.com.au
ATO community, “Carry-forward concessional contributions Q&A,” community.ato.gov.au
ATO community, “Carry-forward concessional contributions Q&A 2,” community.ato.gov.au
Colonial First State, “Increased super contribution caps from 1 July 2026,” cfs.com.au
QSuper, “Contribution caps,” qsuper.qld.gov.au
ATO, “Better targeted super concessions is now law,” ato.gov.au
SMSF Australia, “Non-concessional contributions cap 2026,” smsfaustralia.com.au
Grant Thornton, “Time to revise your superannuation strategy,” grantthornton.com.au

This article is general information only and does not constitute financial advice. Carry-forward contribution outcomes depend on individual income, total super balance, fund type, and tax position. Before making large catch-up contributions, check your ATO records and consult a licensed financial adviser or registered tax agent. Information is current as at June 2026, based on ATO official guidance and industry commentary. The Fine Print 🇦🇺 is not affiliated with the ATO, ASIC or any fund or product mentioned in this article.

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