Your 2019 Unused Super Cap - Use it or lose it!

If your total superannuation balance on the previous 30 June is $500,000 or less, you may have unused concessional super caps that you can use or carry forward - except that the carry-forward time limit is five years. This concession started in 2019, so the current 2024 tax year is the last year you can use a 2019 unused super cap before it expires.

To access unused caps, you must first use up your current year cap, which is $27,500. That may give you an opportunity to contribute a significant amount of tax-deductible super.

Under current law, tax-deductible contributions can be made by your employer (as compulsory super guarantee and additional salary-sacrifice contributions), as personal contributions direct to the fund, or as a combination of both.

Generally, tax-deductible super contributions are not tax effective to the extent that they will reduce your taxable income below about $20,000.

Another tax planning strategy is available to people who are about to click over the $500,000 total super balance limit. For these lucky folk, the current year might be the last opportunity to utilise ANY of their unused caps, so a big “last chance” contribution of ALL the unused capsmight be attractive..