For the 2025–26 financial year, the concessional contributions cap is $30,000. This cap includes all before-tax super contributions, such as employer superannuation payments, salary sacrifice contributions, and personal contributions for which you claim a tax deduction.
If your annual income is less than $250,000, concessional contributions are generally taxed at 15%. For individuals earning more than $250,000, these contributions are taxed at 30%.
Carrying Forward Unused Concessional Contributions
If you do not use your full concessional contributions cap in a financial year, you may be able to carry forward the unused amount to future years. This is known as the carry-forward concessional contributions rule.
Unused contribution cap amounts can be carried forward for up to five years, provided your total superannuation balance is below $500,000 as at 30 June of the previous financial year.
For example, if you made $20,000 in concessional contributions last year, you would have $10,000 of unused cap available. This would allow you to contribute up to $40,000 in concessional contributions this year without exceeding your limit.
Can You Make Additional Tax-Deductible Contributions?
Many Australians contribute less than the annual concessional cap through employer contributions and salary sacrifice arrangements. If this applies to you, you may be able to boost your super by making additional personal contributions and claiming a tax deduction.
How Much Can You Claim as a Tax Deduction?
To calculate the maximum personal contribution you can claim as a tax deduction, subtract your employer contributions and any salary sacrifice amounts from the $30,000 concessional contributions cap.
The remaining amount represents the maximum additional personal contribution you can make and claim as a tax deduction.
You may also be eligible for a tax offset if you contribute up to $3,000 to your spouse’s superannuation account.
- The Benefit: If your spouse earns a low income or is not working, you may be eligible to claim a tax offset of up to $540 on your tax return.
- Eligibility for the Offset: To get the full offset, your spouse must earn $37,000 or less, and you must contribute at least $3,000. A partial offset is available if they earn between $37,000 and $40,000.
- Age Rules: Your spouse must generally be under 75 years old.
Concessional vs Non-Concessional Contributions
Concessional Contributions
Concessional contributions are generally taxed at the concessional rate of 15% and include:
- Employer superannuation contributions
- Salary sacrifice contributions
- Personal contributions claimed as a tax deduction
- Contributions made on behalf of an individual over 18 years of age by a parent, child, friend, or spouse living separately (where the contributor is also over 18)
Non-Concessional Contributions
Non-concessional contributions are voluntary after-tax contributions made to your super that are not claimed as a tax deduction, or contributions that exceed concessional contribution limits or other applicable restrictions.
Four Steps to Make a Contribution and Claim a Tax Deduction
Step 1: Make Your Contribution
Transfer your chosen contribution amount to your super fund using the BPAY details provided by your fund. These can usually be found within the member login section of your fund’s website.
Step 2: Download the Required Form
Obtain the “Notice of Intent to Claim or Vary a Deduction” for Personal Super Contributions” form. Please use this link:
Step 3: Submit the Form
Complete and submit the form to your super fund. Once processed, your fund will send you a written acknowledgment confirming receipt.
Step 4: Lodge Your Tax Return
Include the deductible contribution amount in your tax return and retain the acknowledgment letter from your super fund. The Australian Taxation Office (ATO) will then assess your claim as part of your tax return. Contribution must be made, latest by 3rd week of June, because of the processing time.
Need Professional Tax Advice?
Superannuation contribution rules can be complex, particularly when considering contribution caps, carry-forward provisions, spouse contributions, and tax deduction eligibility. Working with an experienced tax accountant can help to ensure you maximise available tax benefits while remaining compliant with ATO regulations.
If you’re considering making additional super contributions before 30 June, speak with a tax accountant to review your contribution limits, calculate your potential tax savings, and prepare your tax return correctly. Professional tax planning can help you build wealth within super while reducing your overall tax burden. Fair Tax Accountant Geelong provide valuable tax advise to client across Geelong.