Quick Look
Focus: Understand how to maximise your super contributions without breaching the caps.
Key Takeaways :
Contributing to superannuation can be one of the most tax-effective ways to build your retirement savings—but it’s not a free-for-all. The Australian Government sets annual contribution caps and breaching them can lead to extra tax and paperwork.
Understanding the difference between concessional and non-concessional contributions—and the rules that apply to each—puts you in a stronger position to grow your super strategically.
Super contributions are capped to ensure tax benefits are used fairly. The caps reset each financial year, but there are rules that allow you to bring forward future limits or catch up on unused caps—if you qualify.
The problem is many Australians either under-contribute (missing out on tax perks) or accidentally over – contribute (triggering normal personal tax rates). Knowing how the system works now helps you avoid costly mistakes and make the most of available opportunities.
Concessional Contributions–Tax-Deductible
Includes:
Cap: $30,000 per year (ATO, updated 1 July 2025)
Tax treatment: Taxed at 15% going into super (vs your personal marginal rate, which may be higher).
Tactic: Carry Forward Unused Caps
If your total super balance is under $500,000 on 30 June of the previous financial year, you can carry forward any unused contribution amounts for up to 5 years.
Example: If you only used $15,000 last year, you can contribute an extra $15,000 this year—on top of your $30,000.
When it helps:
Non-Concessional Contributions –After -Tax Money
Includes:
Cap: $120,000 per year (ATO, updated 1 July 2025)
Tactic: Bring-Forward Rule
If you’re under 75 and meet the total super balance test, you may contribute up to $360,000 for three years in one go.
Eligibility based on total super balance on 30 June prior:
When it helps:
Optimisation Tips
Watch your total super balance— going over $2.0 million (as at 30 June 2025) restricts your ability to make further non-concessional contributions
Case: Pre-Retirement Catch-Up Amal, aged 58, had a super balance of $420,000 and earned $120,000 annually. Over the previous three years, she only contributed $15,000/year in SG, leaving $37,500 in unused concessional cap.
She sells an investment property and uses $30,000 from the proceeds to make a tax-deductible personal contribution. She also salary sacrifices $7,500. That makes up her total of $37,500—equal to her carried forward concessional cap
Outcome: Claims $37,500 personal deduction, reducing taxable income Pays 15% contribution tax instead of 34.5% marginal rate Super grows tax-effectively, and no excess contributions.
Can I use both carry - forward and bring - forward rules at the same time?
Yes — if eligible. They apply to different caps. But you must track contributions carefully to avoid breaching either cap.
What happens if I go over the cap ?
Excess contributions may be taxed at your marginal rate, and you could be charged an interest penalty. You can choose to withdraw the excess to avoid double taxation
Is there a limit to how much super I can have overall?
Yes. Your total super balance affects your eligibility for certain strategies. The current thresholds are $500,000 for carry forward Concessional contributions and $2.0 million for Non-concessional contributions
Are these caps indexed?
Yes. Both concessional and non-concessional caps are linked to average weekly earnings and reviewed annually. Check the ATO website each July.
Knowing the difference between concessional and non-concessional contributions—and how to legally contribute more through carry-forward or bring-forward rules—gives you more control over your retirement savings. These caps exist for good reason, but they’re also flexible when used wisely.
The key is understanding your limits, checking your total super balance, and getting guidance before making large or complex contributions. Done right, these strategies can make a big difference.
Looking to grow your super with help from the government?
moneyGPS provides a personalised overview of how co-contributions work, including:
Available online for $55. You can explore the platform for free and get the advice when you’re ready.
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