The Super Guarantee Charge (SGC) regime is changing significantly from 1 July 2026 with the introduction of Payday Super. For accounting practices, this means managing two different compliance frameworks during the transition: the final quarterly SG obligations for the June 2026 quarter and the new event-based requirements that apply from 1 July 2026.
For context, the ATO reported $1.91 billion in SGC liabilities raised during 2023–24, including interest, while its estimated net super guarantee gap for 2021–22 was 6.3%, or $5.16 billion. The ATO also issued 8,710 director penalty notices relating to 6,500 companies. These figures show why accurate calculation, timely disclosure and strong payroll controls remain important for practices managing employer compliance.
This blog explains how SGC obligations work, what changes under Payday Super, how late payments affect the charge, and what accountants need to consider when managing client obligations.
What Are Carry Forward Concessional Contributions?
The carry forward concessional contributions rule allows eligible individuals to contribute more than the standard annual concessional cap by using unused cap amounts from previous years. This can be useful where income is uneven, a client has had a career break or they have received a larger one-off amount of income.
Which contributions count towards your concessional cap?
Concessional contributions generally include employer contributions, salary sacrifice contributions and personal contributions for which the individual claims a tax deduction. Contributions made to multiple super funds are combined when assessing the individual’s concessional contributions cap.
How the carry-forward rule works
An eligible client can use unused concessional cap amounts from up to five previous financial years. Eligibility depends on having a total super balance of less than $500,000 at 30 June of the previous financial year. Unused amounts expire after five years, with the oldest available amounts applied first.
Who the rule was designed for
The rule can be particularly relevant where contributions have not been consistent over time. Career breaks, part-time employment, variable business income and periods of lower earnings can leave unused concessional cap amounts available. For practitioners, the opportunity is to identify whether those amounts remain available before a client’s circumstances create a suitable contribution opportunity.
Who Can Use Carry Forward Super Contributions?
Eligibility for carry forward super contributions depends on the client’s total super balance at 30 June of the previous financial year, not their current balance. They must also have unused concessional cap amounts from the previous five years.
The $500,000 Threshold: Why Timing Matters
If a client had $499,000 at 30 June 2026 but later reached $520,000, they can still meet the balance test for 2026–27. However, a $520,000 balance at 30 June 2026 would make them ineligible, even if their balance later falls below $500,000.
The key point: always check the 30 June balance, not today’s balance.
How Long Does Unused Concessional Cap Last?
Unused concessional cap amounts are available for five years. Once the five-year period ends, any unused amount expires and cannot subsequently be used. The rolling nature of the rule means practitioners need to review the age of each unused amount, not just the total balance available.
Carry-forward timeline for 2026–27
The general concessional cap increased from $27,500 to $30,000 from 1 July 2024.
Use-it-or-lose-it: how the rolling window works
Each unused amount has its own five-year life. This means a client with several years of unused cap cannot treat the entire amount as permanently available. Practitioners should identify the earliest expiry date and review unused concessional contributions available to carry forward before recommending a larger contribution.
Oldest amounts are applied first (ATO rule)
The ATO applies the oldest available unused concessional cap amounts first when carry-forward amounts are used. This makes the expiry date of each year’s unused amount important when planning contributions.
ATO Carry Forward Concessional Contributions
The ATO provides the available carry-forward information through ATO online services. Clients can access the information through myGov, under Super → Information → Carry forward concessional contributions. The displayed information can help practitioners establish the ATO carry-forward concessional contributions available before reviewing a contribution strategy.
For professional firms, this should form part of the information gathering process rather than relying on a client’s estimate of unused cap.
How to Make a Carry Forward Contribution and Claim the Tax Deduction, Step by Step
The contribution itself is only one part of the carry forward concessional contributions process. Practitioners should first confirm eligibility, review the client’s existing concessional contributions for the year, and establish the amount available from previous years.
A practical workflow is:
- Check the client’s total super balance at 30 June of the relevant year.
- Review available unused concessional cap amounts.
- Check employer and other concessional contributions already made.
- Calculate the proposed contribution and available cap.
- Make the contribution before the relevant financial year deadline.
- Where a personal contribution is being claimed as a deduction, complete the required notice of intent process with the fund.
- Confirm the contribution has been correctly reported.
This approach reduces the risk of relying on an outdated cap figure or overlooking contributions made through another fund.
Carry Forward Concessional Contributions in Australian Super and SMSFs
Industry and retail funds: NOI acknowledgement and member portals
Where a client makes a personal contribution and intends to claim a tax deduction, the required notice of intent process needs to be considered. Fund portals can also provide useful information about carry forward concessional contributions in Australian super, although practitioners should reconcile this information against the client’s broader contribution position.
SMSFs: contribution recording and lodgement timing
For SMSFs, contribution records need to align with the fund’s accounting records and reporting. Timing can become particularly important around 30 June, especially where contributions are made close to year-end. Practitioners should retain appropriate evidence and reconcile transactions before finalising the
fund’s reporting.
Multiple funds and your total super balance
Clients with multiple super interests need a consolidated view. Concessional contributions across different funds count towards the same annual cap. This makes contribution data from every fund relevant when calculating how much additional capacity remains.
Contributions via employer or company, and the cap
Employer contributions, including salary sacrifice arrangements, count towards the concessional contributions cap. A proposed personal contribution therefore needs to be considered alongside contributions already made by an employer or business.
Carry Forward vs Bring Forward: Don't Confuse Concessional Catch-Up with Non-Concessional Contributions
These rules address different types of super contributions. The carry-forward mechanism relates to concessional contributions, while the bring-forward arrangement relates to non-concessional contributions.
The distinction matters because the tax treatment, eligibility conditions and contribution caps are different. Practitioners should establish which contribution type is being considered before calculating available capacity or discussing the potential tax outcome with a client.
When to Get Professional Advice on Carry Forward Concessional Contributions
The rules can become more complex where clients have multiple funds, significant employer contributions, variable income, SMSFs or large one-off contribution opportunities. Professional review can help confirm eligibility, reconcile contribution history and identify amounts approaching expiry
For accounting and
SMSF practices, this is also where a consistent internal workflow can reduce calculation errors and avoid relying on incomplete client information.
Conclusion
Carry-forward concessional contributions can create valuable planning opportunities, but the strategy depends on more than the amount shown as available. Practitioners need to consider the client’s total super balance, contribution history, five-year expiry window, multiple funds and intended tax deduction.
SuperRecords can support firms with accurate SMSF administration and structured workflows, helping teams manage contribution records and review requirements efficiently.
Frequently Asked Questions
