Catch-Up Contributions: Maximizing Your Superannuation

We know superannuation can be complex, but there are some amazing benefits and features available to take advantage of.  Did you know about the benefits of catch-up concessional contributions?

When your employer contributes to your super fund this is classified as a concessional contribution.  If you make or receive concessional contributions (CCs) of less than the annual concessional contributions cap (currently $30,000 per annum for the 2024/25 financial year), you may be able to accrue these unused amounts and carry them forward for use in subsequent financial years. This is known as catch-up concessional contributions.

How It Works

Unused cap amounts can be carried forward for up to five years before they expire. To be eligible to make catch-up CCs,  your total super balance must be below $500,000 at 30 June.

Benefits of Catch-Up Contributions

This option provides greater flexibility to make concessional contributions if you have broken work patterns or can't afford to contribute in a particular year. There can be other significant benefits to using catch-up contributions when you sell taxable assets, however this takes careful planning (and is not explored here).

Case Study: Jenny's Journey

Let's take a look at Jenny's situation.  She is considering making additional contributions to super in 2024/25. To demonstrate this strategy we have listed her prior years and unused amounts accrued since 2019/20 are summarized below:

Year	Contributions Made	Unused Cap
2019/20	$15,000	$10,000
2020/21	$0 (took a year off)	$25,000
2021/22	$15,000	$12.500
2022/23	$20,000	$7,500
2023/24	$20,000	$7,500

 Based on this information, Jenny's personal CC cap for 2024/25 is $92,500, which includes the current annual concessional contributions cap of $30,000 and $62,500 of catch-up contribution.

Important Considerations

Remember that you can't access your super until you meet a condition of release, such as reaching your preservation age and retiring. Most super fund’s have a cut off date for end of year processing so allow plenty of time. And most important of all before making additional contributions to super it's important to seek advice and ensure you are eligible, understand the overall benefit, and determine whether making contributions is the right option for you.

General Advice Warning - This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial or tax adviser before making any investment decisions.