Reduce Your Tax by Thousands With Unused Concessional Contributions

Learn what carry-forward unused concessional contributions are and how to optimise your contribution strategy each financial year.

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⏱ Timestamps
00:00 – Carry Forward Unused Concessional Contributions
01:26 – How Unused Contributions Work
02:31 – When Should You Use Unused Contributions
02:54 – Are You Eligible To Use Unused Contributions?
03:57 – Are You Comfortable Unused Contributions?
04:37 – Optimising Your Unused Contributions
06:51 – When You Shouldn’t Use Unused Contributions
07:35 – Case Study Example: How To Use Unused Contributions
13:18 – Things To Be Mindful Of

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Carry-Forward Unused Concessional Contributions Can Save You Thousands

Unused concessional contributions are arguably the most underutilised tax-effective superannuation strategy for people with superannuation balances below $500,000.

Each year, your unused concessional contributions from previous years are carried forward for up to five financial years.

By contributing some or all of your unused amounts to super via salary sacrifice or personal concessional contributions, you can bring your personal income tax down to $0 - saving you tens-of-thousands of dollars each financial year.

In this video, I’m going to explain how unused contributions work, when you should and shouldn’t use them, how to find out your unused amounts and how you can calculate the precise amount you should be using each year.

#SuperGuy #ChrisStrano #Superannuation #RetirementPlanning

DISCLAIMER: The SuperGuy website and SuperGuy YouTube channel contains general advice only. It is not personal advice as it does not take your specific needs or circumstances into consideration. Therefore, you should look at your own financial position, objectives and requirements and seek personal financial advice before making any financial decisions.

General advice is provided by Toro Wealth Pty Ltd trading as SuperGuy Retirement Experts as an Authorised Representative of Core Value FA Pty Ltd (AFSL 480387).

Before acting on any information, you should seek professional advice and verify our interpretation/s before relying on the content or calculators within this website or on the videos, while also considering its appropriateness in relation to your personal situation.

[SuperGuyAu]

Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today:

[Tylerjames-vm]

Yes, you can carry forward unused concessional contributions to future years.

[Greolt]

I used this strategy last financial year. Asked my accountant to prepare our returns but not lodge. That way I knew exactly how much to notify intent to claim. Bought our income tax down to zero. Of course we had already made non concessional contributions in exess of what was needed.
Note that that intent form does not have to lodged before end of financial year. But must be done before lodging tax returns.

[Michael_Mears]

We don't bother going under $45K with deductions for super. The income tax rate is 19% plus medicare levy vs super tax rate of 15%, so only gaining 4-6% or so there for locking up funds until retirement or 65 years or age. However, in the example Anthony is 62 years of age, so there's that. The next financial year 2024-25 the $18, 201 to $25, 000 income tax bracket is 16%, so only 1-3% benefit there for using this strategy. Each to their own. Good video. Explains it well.

[jamesmuller]

I have done this just recently and noticed in my tax account that it is showing as a non concessional contribution. I have found out that it shows as non concessional till you do your tax return claiming the deduction. Was stressing but fingers crossed it will be right. Thanks for the video.

[AnDo-icro]

At 55 Pity the super concession stops at approx $30k only 10 years till retirement we need to put as much as we can invest take pressure of housing, & invest surplus in super not negative gear property, we can put less pressure on pension

[jameshind]

I did this this year after hearing about it. I put in $68k lost $10200 to the 15% super tax and gained $23k back in income tax so net was $12800 in my favour. I will be doing this next year with a smaller amount.

[nickpower-fjbu]

Working hard to clear my unused amounts. 3 years into a 5 year plan and so far so good. Getting close to limit so before June 30 next year might need to make a bit of a 1 off to clear. After that will drop amount salary sacrificed to try and maximise contribution limit. 59 years old and kids gone so have been able to live off reduced take home pay.

[gloriasaliba]

This is such valuable information so thank you. I am 63 have not worked the past two years due to health issues. I am however looking at using the carry forward super contributions once I secure new employment. I’m looking at carrying forward the full $55, 000 representing the last 2 years’ concessional caps. I’ll speak with my super fund tomorrow to get this started

[mayhk]

Excellent, timely video !! Thanks a million Chris !!!

[dqretirement]

These are pre-tax contributions to your superannuation fund, which include employer contributions, salary sacrifice arrangements, and personal contributions for which you claim a tax deduction

[PhilInAustralia]

Great video as always, Chris. I used this strategy to reduce the tax on a large capital gain very effectively.

[rht]

Very informative and the case study was excellent and quite similar to my situation, thanks

[luckyrog]

brilliant explanation and demonstration, your example is as close to my own circumstance's thank you very much, i will send your link to all my mates who like me have just been made redundant and will have huge tax bills end of this year unless they do something to minimize it,
just one thing regarding the TTR i'm 62 in May 2025, have $197k taxable income for current year, so not worth working tax wise for rest of this financial year, can i take 6 months out of work now (reduced hours criteria fot TTR) then start next year? and be able to start a TTR now, or would i have to wait til i started having an income again next year? (i am also in business as a Sole Trader as a second income)

[darrenbarnett]

Hi Chris great content. Question. Should the amount declared on the Notice of Intent include before tax salary sacrifice contributions and after tax PCC or just PCC? TIA

[mrdobalina]

If under 500k super you can also split up to 85% of your current year of super contributions I believe and I’m looking at this now. So in the example provided if the male client had a wide with less super he could have done that too to try and stay under the 500k cap and to bolster his wife’s super.

[ME-qqdc]

HI, appreciate your channel. Is there a calculator that you can use to calculate the optimum amounts to add to your super both concessional and non concessional in order to minimise tax, and maximise your super contributions?

[F-talktomegoose]

I've asked this elsewhere but didn't get an answer so here's hoping. If I'm >60 and meet a condition of release and pull a lump sum out of super so the balance is <500K, does this mean I can access the unused caps ( lets say I haven't worked for the past 5 yrs) should I want to do a large concessional contribution ? ( ie 5 x $30K current cap)

[darrens]

Hi Chris, you say that you can't access your super until retirement or age 65, but I thought you could access up to 10% with a transition to retirement strategy? I was thinking of topping up my super (I'm 57) then drawing down on it when I hit 60 and still working full time, is that possible? Thanks, enjoy your videos

[downthebandicoothole]

If you earn $80, 000 how would you have $59, 000 available for personal contribution when a cabbage almost costs your entire weekly wage?