MAKING CONCESSIONS | The carry-forward concessional contributions scheme

As we get closer to the end of the financial year, planning for our year-end tax and implementing strategies to help reduce this burden become increasingly important.  One strategy that is often utilised to great effect is to place money into our superannuation funds through the use of a personal concessional contribution.

At a glance

A personal concessional superannuation contribution is an allowable deduction in the financial year in which they are made and therefore lowers our taxable income and our corresponding income tax exposure.

Generally speaking, the maximum concessional contributions that can be made each financial year is $25,000, however, with the recently introduced catch-up scheme, we now have the ability to access unused contributions from prior years.

Unused concessional contributions from the 2018/19 financial year onwards may be carried forward and ‘caught up’ any time within the next 5 years, provided the existing superannuation balance is less than $500,000 at the end of the previous financial year.

Putting it into practice

On 20th June 2021 John considers making a concessional contribution to reduce his 2022 taxable income. John had a superannuation balance of $300,000 at 30 June 2020 and has never previously made a personal superannuation contribution, but received $3,000 employer superannuation contributions in each of the 2019, 2020 and 2021 financial years as follows:

  2019 2020 2021
Concessional Contributions 3,000 3,000 3,000
Superannuation Balance 280,000 300,000 320,000
Unused Concessional Contributions 22,000 44,000 66,000

Based on the above, John has the potential to make a $66,000 personal superannuation contribution for the year ended 30 June 2021 which is an allowable tax deduction


Aside from the benefit of a taxable deduction, this flexibility in the timing of concessional contributions may prove helpful to those who have not had regular employments, inconsistent cash flow or those nearing retirement age who are looking to increase their retirement savings.

It is important to note that the benefit of the contribution will be reduced by the effect of Division 293 Tax. Division 293 imposes an additional tax rate of 15% for contributions made into a superannuation fund by individuals earning above $250,000 per annum.

Need help?

If you would like to discuss your personal situation further and to see what options are available to you, please do not hesitate to contact our office.

Want to know more?

If you have any concerns with regards to the carry-forward concessional contributions scheme, please contact Michael Craig, our Business Advisory Director, for assistance.

An Important Message

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.



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