Everything you need to know to gain an understanding of superannuation...
Concessional contributions comprise of:
One of an extensive range of superannuation reforms the Federal Government announced in its 2016 Budget relates to the opportunity for eligible people to carry forward the unused portion of their concessional contribution cap. This initiative commenced from 1 July 2018.
From 1 July 2024 the concessional cap was increased to $30,000 per financial year. However, using the carry-forward provision you may be able to contribute more in a given year if you meet the criteria.
To be eligible to carry forward the unused portion of the concessional contribution cap, a person must have a total superannuation balance of less than $500,000. The total superannuation balance is the total of all the money a person has in the superannuation system as at the previous 30 June. When calculating the total superannuation balance all amounts held in superannuation accumulation accounts, the balance of any accounts paying a pension, and amounts being transferred between superannuation, are included.
For example, a person with $200,000 in a superannuation accumulation account and a pension account balance of $250,000, as at the previous 30 June, will have a total superannuation balance of $450,000.
Any unused concessional contribution cap that accrues from 1 July 2019 may be carried forward for a period of up to five years. If the concessional contribution cap was not fully utilised in any financial year before 1 July 2019, the unused portion cannot be carried forward.
When calculating the total superannuation balance all amounts held in superannuation accumulation accounts, the balance of any accounts paying a pension, and amounts being transferred between superannuation, are included.
For example, Elaine has a total superannuation balance of less than $500,000 as at 30 June 2024. Her employer made concessional contributions of $8,000 in the 2023-24 financial year. She also made a personal tax-deductible contribution of $2,000, bringing her concessional contributions for the year to $10,000.
Elaine’s unused concessional contribution cap is $17,500 (i.e. $27,500, less $10,000). She can carry the unused portion of her concessional contribution cap forward for up to 5 years.
This means that in 2024-25, the maximum concessional contributions that could be made, provided her total superannuation balance as at 30 June 2024 was less than $500,000, are $47,500 (the basic $30,000 concessional contribution cap, plus $17,500 carried forward from 2023-24).
Note: For the sake of simplicity, the unused concessional contribution cap from years prior to 2022-23 have been ignored in this example.
Request a call from an expert in superannuation to see how we can help you. Our advice is tailored to your specific needs, goals and preferences to ensure that you have the strategy right for you.
Don’t just take our word for it, hear what our clients have to say about their experience working with a Dumont Melbourne Financial Planner.
We take the time to listen and understand your situation to develop tailored strategies for your goals. We are focused on developing long term relationships with our clients by guiding them through all life stages. If you’re looking for a hands-on and involved professional, we would love to hear from you.
We want to work with you towards achieving your goals and seek to develop long-term ongoing relationship based on trust and value. Our goal is to provide you with a seamless experience.
Complex choices become easier to navigate with step-by-step planning and simple explanations tailored to your life and goals. Our solutions take into account all of your personal circumstances and preferences.
We partner with you and your other professionals to help manage your affairs. Therefore, we can help to remove the stress from financial decisions, giving you confidence that you’re on the right path for your future.
Dumont Wealth strongly believes in the principle of transparency and providing value driven experiences. Therefore, we provide many resources for free to the public and clearly disclose our pricing and services, so you always know what you are paying. Our financial advice process is simple for you and is flexible to accommodate the level of involvement you would like.
Dumont is committed to providing access to free education. We have created a free library of guides and insights to help you improve your financial literacy.
Our advice packages are tailored to fit your unique needs, offering a range of services and strategies based on the complexity of your situation and the value we provide.
Our process is focused on making your experience as easy as possible because we know that financial planning can be stressful. Let us handle all the hard work.
We provide a comprehensive library of articles and content to help educate Australians and improve financial literacy. There are plenty of guides, explanations and resources that you can use absolutely free!
Everything you need to know to gain an understanding of superannuation...
A guide to superannuation death benefits, who they can be paid to, how nominations work and the tax on benefits paid....
© 2025 Dumont Wealth Pty Ltd
