Catch Up Concessional Contributions

Catch-up concessional contributions cap

How does it work?

If you make or receive concessional contributions of less than the annual concessional cap of $25,000 per annum, you may be able to accrue these unused amounts for use in subsequent financial years.  Please note the concessional contributions cap is increasing to $27,500 in the 2022 financial year.  The financial year ending 30 June 2019 was the first financial year you could accrue unused cap amounts and these amounts could be used from 1 July 2019.  Unused cap amounts can be carried forward for up to five years before they expire.  In order to be eligible your total super balance at the prior 30 June must be below $500,000.  Your total superannuation balance is the total amount you have in superannuation at any one time.  Accumulation, Transition to Retirement and account based pensions are all included in your total superannuation balance.

What are the benefits?

Have flexibility to make concessional contributions provides advantages.  If your work or cash flow in your business fluctuates it provides flexibility as some years you may not be able to afford to make contributions but are able catch up when cash flow improves.

Also a larger concessional cap in a particular financial year provides an individual with a greater opportunity to reduce their personal assessable income and personal income tax.

How to access carried forward amounts details?

There are a few ways you can monitor your available carried forward concessional contributions.  This includes:

• Keeping detailed records of all the contributions you and others (such as your employer) have made to your super accounting in the last 5 years.
• Checking your details on MyGov
• Contacting your super funds to check what contributions have been received to your account in the past (including the accounts you may have closed)
• Contact McFillin Accounting for a breakdown on the ATO client portal.