Concessional super contributions: the $30,000 cap and carry-forward

Adding to super is one of the few genuinely tax-advantaged moves left for ordinary earners — but it runs on caps and rules that catch people out. Here's how concessional contributions work in 2025-26.

What "concessional" means

Concessional contributions are the ones that go in before tax: your employer's compulsory super, any salary sacrifice you arrange, and personal contributions you claim a deduction for. They're taxed at just 15% on the way into the fund — well under most people's marginal rate — which is the whole reason the strategy works.

The $30,000 cap

For 2025-26 the concessional cap is $30,000 per year, and it includes your employer's contributions. So if your employer is putting in, say, $12,000, you have about $18,000 of room to salary sacrifice or contribute and claim. Go over the cap and the excess is taxed at your marginal rate (with an offset for the 15% already paid), so it's worth tracking.

Carry-forward: the rule most people miss

If your total super balance was under $500,000 on 30 June last year, you can use unused cap from the previous five years on top of this year's. Someone who's been contributing little can potentially put in well over $30,000 in a single year and claim the lot — powerful in a high-income year, after selling an asset, or returning from time out of the workforce.

The Division 293 catch for high earners

If your income plus concessional contributions tops $250,000, an extra 15% tax applies to the contributions over that line — so they're taxed at 30% instead of 15%. That's still below the top marginal rate, so sacrificing often remains worthwhile, but the maths is closer and worth checking.

The trade-off in one number

Sacrificing $10,000 instead of taking it as salary at a 39% marginal rate means it's taxed at 15% going into super — roughly $2,400 less tax that year — but the money is locked away until you meet a condition of release. Our salary sacrifice calculator prices the take-home effect, and the super calculator projects what those extra dollars become by retirement. General information only — not financial advice.