Using the Carry Forward Concessional Contribution Rules as an Australian Expat

Navigating superannuation as an Australian expat can be complex, especially when you're not regularly contributing to your super fund while living overseas. However, one opportunity that often flies under the radar is the ability to use Carry Forward Concessional Contribution Rules as an Australian Expat. These rules can help you boost your retirement savings in a tax-effective way, particularly for Australian Expats who have not contributed to their super for several years while overseas.

In this article, we’ll explain the different types of superannuation contributions, the current caps, how the carry forward rules work, and how you can take advantage of the carry forward concessional contribution rules as an Australian expat.

Types of Superannuation Contributions in Australia

Before diving into the carry forward strategy, it’s important to understand the two main types of superannuation contributions in Australia:

1. Concessional Contributions

These are contributions made into your super fund from your pre-tax income. They include:

• Employer Super Guarantee (SG) contributions

• Salary sacrifice contributions

• Personal contributions you claim as a tax deduction

  
  

These contributions are taxed at 15% in your super fund, which is typically lower than your marginal tax rate.

2. Non-Concessional Contributions

These are contributions made from your after-tax income and are not taxed within the super fund. They include:

• Voluntary contributions you don’t claim as a tax deduction

• Contributions from your bank account or savings

  
  

Non-concessional contributions are generally used to top up your super when you’ve already maxed out your concessional cap.

Contribution Caps: Know Your Limits

Concessional Contribution Cap

• The concessional contribution cap is currently $30,000 per financial year.

Non-Concessional Contribution Cap

• The non-concessional cap is currently $120,000 per financial year.

• Under the bring-forward rule, eligible individuals under age 75 can contribute up to $360,000 in a single financial year.

  
  

These cap amounts are current as of 1 July 2025, but are subject to change from time to time. The concessional contribution cap is indexed every few years in line with average weekly ordinary time earnings (AWOTE) in Australia. The non-concessional cap is often indexed to be four times the amount of the concessional cap, e.g. $30,000 x 4 is $120,000. It’s important to check the current cap before making a super contribution.

What are the Carry Forward Concessional Contribution Rules?

The carry forward concessional contribution rules allow you to make extra concessional contributions by using up unused concessional cap amounts from previous financial years. You're eligible to do this if you have both:

• a total super balance of less than $500,000 at 30 June of the previous financial year

• unused concessional contributions cap amounts from up to 5 previous years.

This means if you didn’t use your full concessional cap in past years, you can "catch up" by making larger contributions in a future year.

This can allow you to claim a much higher tax deduction for your concessional contributions to super, significantly reducing your taxable income in Australia.

Using the Carry Forward Concessional Contribution Rules as an Australian Expat

As an Australian expat, you're likely not receiving Super Guarantee contributions from an Australian employer, and you may not be making regular voluntary contributions either. This is where the carry forward concessional contribution rules as an Australian expat become particularly useful.

Why It's Relevant:

• Expats often accumulate unused concessional caps over several years.

• Contributing to super while overseas is still possible, so you can catch up using these accumulated caps.

• It’s a tax-efficient way to contribute, especially if your taxable income in Australia is higher in a particular year (e.g. you sold a property).

Example Scenario:

Let’s say you moved overseas in 2020 and didn’t make any concessional contributions to your super for five years. You return to Australia in FY2025–26 with a total super balance under $500,000. You could potentially make a one-off concessional contribution of up to $167,500, made up of:

• $30,000 current financial year cap

• $137,500 from the previous five years using the carry forward strategy

The table below illustrates how the unused cap space accumulates where no concessional contributions have been made during the last 5 years:

	.	.	.	.	5-Year Period	Current Year
Financial Year	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26
Cap (Limit)	$25,000	$27,500	$27,500	$27,500	$30,000	$30,000
Used	$0	$0	$0	$0	$0	$0
Unused	$25,000	$27,500	$27,500	$27,500	$30,000	$30,000
Unused Accumulated	$25,000	$52,500	$80,000	$107,500	$137,500	$167,500

This strategy can boost your super and significantly help reduce your taxable income in Australia.

Strategic Tips for Expats

1. Track Your Unused Caps

Use the ATO’s online services via myGov to view your unused concessional caps and total super balance.

2. Plan Ahead

Consider aligning a large concessional contribution with a high-income year to maximise the tax deduction benefit. This may be a year where you sell a property in Australia, and you realise a large capital gain that you want to offset.

3. Work with a Financial Adviser

Given the complexities of superannuation and tax for expats, a licensed financial adviser can help you make the most of the carry forward concessional contribution rules as an Australian expat.

4. Watch Out for Currency and Timing

If you’re converting foreign currency to AUD, consider exchange rate timing. Also, contributions need to be received by your super fund before 30 June to count for that financial year.

Conclusion

The carry forward concessional contribution rules as an Australian expat provide a rare opportunity to catch up on missed super contributions and receive significant tax benefits. Whether you're still abroad or planning a return home, understanding and leveraging this rule could make a meaningful difference to your retirement savings.

Take advantage of these rules before your unused caps expire and while your super balance remains under $500,000. It's a smart move that could save you tax and set you up for a stronger financial future.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.