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Catch-up contributions

You don't have to miss an opportunity to contribute more

What is a catch-up contribution?

There’s a solution if you feel like you’ve missed the boat when it comes to building your retirement savings due to expenses or time-out raising kids, study or parents’ aged care.

You may be eligible to make a catch-up (or carry-forward) contribution greater than the annual cap if you haven’t fully used your concessional contributions cap in an earlier financial year since 1 July 2018. This could help you to save even more for retirement, while also managing your tax.

Ready to make a catch-up contribution?

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What are the benefits?

Greater flexibility – people with irregular income or broken work patterns can enjoy the same opportunity for a comfortable retirement as those who have a regular income. Also, it can help people who can’t contribute to the concessional contribution cap in one year but can invest more over the following five years.

Tax concessions in super – Before-tax contributions or after-tax contributions into super which you claim as a tax deduction are taxed at up to 15% in your super fund compared to investments outside of super which are taxed at your marginal tax rate (up to 47%).

Is a catch-up contribution right for me?

It could be, but first check that you’re eligible to contribute to super and that:

  • You have a total super balance less than $500,000 at the last 30 June. Catch-up contributions count towards the concessional contributions cap and penalties may apply if the cap is exceeded.
  • Check your concessional contributions for the financial year from all sources before adjusting your contribution strategy. Concessional contributions include those made for you by your employer, salary sacrifice contributions and personal contributions that you claim as a tax deduction. Also included and should be checked are any fees and insurance premiums for your super that your employer may pay on your behalf.
  • You can’t access your super until you meet a condition of release such as reaching preservation age and retiring.
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How can I find out and monitor my unused concessional contributions?

Take a look at our Know How flyer to find out how to see the unused concessional contributions that you can carry forward from past years into the current and future years.

Ready to make a catch-up contribution?

We’re here to help

If you value the experience of experts in other aspects of your life, don't discount it when it comes to your financial wellbeing, including your super.

A financial adviser can help you identify ways to grow your super. So, start the conversation to see how a financial adviser can help you. If you don’t have one, give us a call and we can help you find one near you.

Consolidating your super by bringing it together in one place can be one of the most effective ways to grow your super, by no longer paying multiple fees and potentially multiple insurance premiums.

Voluntary contributions are money that you contribute into your super from your after-tax income or other money that you can invest. These are also known as non-concessional contributions.

Do you have more super than your spouse? You could add to their super and both enjoy the benefits of less tax and more super for retirement.

If you can afford to give up some of your salary to grow your super, and your employer allows, you can arrange for ‘salary sacrifice’ contributions.

If you’re a lower or middle-income earner, you might be eligible to receive a Government boost to your super.

The downsizer contribution allows eligible Australians aged 65¹ or older to sell their home and contribute up to $300,000 of the proceeds into their super.

Important information

The information on this web page is of general nature only and has been prepared on behalf of the Trustee without taking into account your objectives, financial circumstances or needs. Before acting on any of this information, you should consider whether it is appropriate to your objectives, financial circumstances and needs, and seek appropriate professional advice. You should not rely on this information to determine your personal tax obligations, please consult a registered tax agent for this purpose.

1Please note that the 2021/22 Federal Budget proposed the abolition of the work test for Australians aged 67 – 74 from 1 July 2022. No legislation has passed to support this measure.