The amount you can contribute to your super each financial year before paying extra tax is generally capped, with different caps applying depending on the type of contribution you make.

However, a couple of special rules can help you extend those caps and give your super an extra boost.

There are two types of contributions you can make to your super: concessional and non-concessional.

Concessional contributions are those made from your pre-tax salary. They include:

• The contributions your employer makes
• Salary sacrifice contributions
• Personal contributions claimed as a tax deduction

Making contributions from your pre-tax salary could be a tax-effective way of investing. This is because concessional contributions are taxed at 15% when they’re received by the fund. After-tax or non-concessional contributions, meanwhile, are made after you’ve already paid income tax, which for most people is paid at a higher rate.

You can make up to $27,500 worth of concessional contributions in the 2023/24 financial year.

The cap is subject to indexation, which means it can change every few years. Here’s how the cap has changed:

• Between 2017/18 – 2020/21: $25,000 per year
• Between 2021/22 – 2023/24: $27,500 per year
• From 2024/25: $30,000 per year

It’s important to note that there may be specific rules for your division about concessional contributions – you can learn more about what rules apply to you here.

Non-concessional contributions are those made from your after-tax salary.

You can make this type of contribution via BPay, or you can arrange with Payroll for a portion of your after-tax salary to go into your super.

You can make up to $110,000 worth of non-concessional contributions in the 2023/24 financial year.

This cap is also subject to indexation, which means it can change every few years. Here’s how the cap has changed:

• Between 2017/18 – 2020/21: $100,000 per year
• Between 2021/22 – 2023/24: $110,000 per year
• From 2024/25: $120,000 per year

While the current annual cap for concessional contributions is $27,500 in the 2023/24 financial year, a special rule called the ‘carry forward’ rule can help you maximise this. It works by allowing you to make the most of any unused amounts under the cap from previous financial years.

If your total superannuation balance is below $500,000 as of the previous 30 June, you can carry forward unused amounts over a rolling five-year period, with unused amounts from the 2018/19 financial year the first you can carry forward.

Because the caps have changed a few times over the last few years, it’s important to check the caps from the years you want to carry forward.

For example, if you had only made $10,000 of concessional contributions in the 2020/21 financial year, you would be able to contribute a total of $42,500 in the 2021/22 financial year: $27,500 up to the new cap in the 2021/22 financial year, plus the $15,000 worth of unused contributions carried forward from the year before, when the cap was $25,000.

If you maximised your contributions in 2021/22, your new rolling five-year period would then have begun in 2022/23.

The amount you can contribute to your super each financial year from your after-tax salary is currently capped at $110,000, but a special rule can help you maximise this amount.

If you fit the eligibility criteria, you may be able to make up to three years’ worth of after-tax contributions in one year by tapping into your future cap space in advance.

The amount you may be able to contribute depends on your total superannuation balance. You learn learn more via the ATO.

If you want to make additional contributions, it’s a good idea to give us a call to check how much cap space you have available to either carry forward your concessional contributions, or bring forward your non-concessional contributions. We can tell you how much you’ve already contributed and how much more you can contribute before hitting the relevant limits.

Before making extra contributions, also remember that your money will be locked away until you reach your preservation age, which could be decades away – so it’s important to think about how much you can afford to contribute.