Catch Up Concessional Contributions and Tax Deductions

A lot of people use catch up concessional contributions in the same way.

They make a personal super contribution. Then they claim a tax deduction.

It can be a good combination. It can also go wrong if you misjudge timing, or if you forget what counts toward the cap.

This guide keeps things practical and high level, so you can avoid the common mistakes.

Key takeaways

• Personal contributions you claim as a tax deduction are concessional contributions and count towards your concessional cap.
• Your concessional cap includes employer Super Guarantee and salary sacrifice too, not just what you pay in personally.
• Your current year concessional cap is used first. If you exceed it, carry forward amounts can apply automatically, oldest year first, if you meet the rules.
• Contributions count in the year your super fund receives them, not when you press transfer or when payroll runs.
• If you plan to claim a deduction, you generally need to lodge a notice of intent with your fund and receive an acknowledgement before you claim it.
• If you are close to the cap, allow for ATO reporting delays and leave a buffer.
• Start with the hub guide if you need the full rule set: Catch Up Concessional Contributions (Australia)
• Use the calculator to estimate how much you can contribute this year: Catch Up Contributions Calculator

First, what is a personal tax deductible super contribution?

A personal tax deductible super contribution is a contribution you make from your own money that you later claim as a tax deduction.

People often do this to reduce taxable income and build super at the same time.

From a cap perspective, the important point is simple.

If you claim a deduction for a personal contribution, that amount counts as a concessional contribution.

The ATO summarises what counts and how caps work here: ATO: Concessional contributions cap

How a deductible contribution fits with catch up concessional contributions

Catch up concessional contributions are also called carry forward concessional contributions.

They let you use unused concessional cap amounts from earlier years to increase how much you can contribute this year.

A deductible personal contribution can be one way to use those carry forward amounts.

The key is that you do not choose to use carry forward amounts from the start.

Your current year cap gets used first.

Once your total concessional contributions exceed the current year cap, the ATO can apply your available unused amounts automatically, starting with the oldest available year, assuming you meet the eligibility rules.

If you want the full explanation of eligibility, expiry, and how the cap applies, start here: Catch Up Concessional Contributions (Australia)

What you must include when you calculate your cap

This is where most people get caught out.

Your concessional cap is not just your personal deductible contribution.

It includes:

• Employer Super Guarantee
• Salary sacrifice
• Personal contributions you claim as a tax deduction

If you forget employer contributions, you can think you are under the cap when you are not.

If you have more than one employer, or more than one super fund, it gets easier to miscount. The ATO also highlights that concessional contributions across all funds are added together.

Notice of intent to claim a deduction, in plain English

If you plan to claim a deduction for a personal contribution, you generally need to lodge a notice of intent to claim a deduction with your super fund.

Your fund then issues an acknowledgement.

In most cases, you only claim the deduction after you have that acknowledgement.

Funds often have their own forms and cut off dates, so check with your fund early, especially if you are contributing close to the end of the financial year.

This is exactly why I encourage people to leave a buffer.

Timing matters more than people expect

Contributions count when the fund receives them

For concessional cap purposes, contributions count in the year your super fund receives them.

That means “I transferred it on 29 June” does not guarantee it counts in that financial year.

It depends on when the fund receives it.

Super Guarantee timing can spill into the next year

The ATO notes that employers can pay Super Guarantee for the quarter ending 30 June by 28 July in the next financial year.

If you are trying to max out your cap, that matters. Employer timing can change which financial year a contribution counts in.

ATO online services can lag

ATO online services shows what funds have reported, and it may not be up to date.

If you want a practical walkthrough of where to check and what the numbers mean, use: How to Check Unused Concessional Contributions in myGov

The two big traps

Trap 1: You exceed the cap without realising

This usually happens because someone:

• forgets employer contributions
• forgets salary sacrifice
• relies on myGov figures that have not updated yet
• pushes up against 30 June without a buffer

If you are at risk of exceeding the cap, the ATO notes that you may need to stop or reduce voluntary before tax contributions, or delay personal contributions you intend to claim as a deduction.

If you want the consequences explained clearly, read: What happens if you exceed concessional contributions?

Trap 2: Division 293 changes the maths

If your income plus concessional contributions is over $250,000, Division 293 may apply.

That can increase the effective tax on concessional contributions, which changes the net tax benefit of claiming a deduction.

You can estimate Division 293 here: Division 293 calculator

Or read the plain English breakdown: Division 293 tax explained

What I would do in practice

If you are planning a deductible catch up contribution, here is the clean sequence.

Step 1: Check your available carry forward amounts

Use ATO online services through myGov:

• Super
• Information
• Carry forward concessional contributions

A walkthrough is here: How to Check Unused Concessional Contributions in myGov

Step 2: Estimate your total concessional contributions for the year

Include employer SG and any salary sacrifice.

Then compare that total to your current year cap, plus any carry forward amounts you have available.

If you want a quick estimate, use: Catch Up Contributions Calculator

Step 3: Leave a buffer and watch timing

This is boring, but it matters.

If you aim to hit an exact number right at the end of June, you are relying on processing time and reporting time.

That is where mistakes happen.

Watch the 60 second version

If you prefer video, here is my short playlist covering carry forward concessional contributions: Carry Forward Concessional Super Contributions playlist

FAQs

Do personal tax deductible super contributions count as concessional contributions?

Yes. Personal contributions you claim as a tax deduction are concessional contributions and count towards your concessional contributions cap, along with employer Super Guarantee and salary sacrifice.

Can I use carry forward amounts with a personal tax deductible contribution?

Yes, if you meet the eligibility rules. Your current year cap is used first. If your total concessional contributions exceed the current year cap, the ATO can apply your available unused cap amounts automatically, starting with the oldest year.

What is the biggest trap when claiming a deduction for a catch up contribution?

Misjudging timing and totals. Contributions count towards the cap in the year the super fund receives them, and your ATO online services figures may lag because they depend on fund reporting. It is easy to accidentally exceed the cap if you do not include employer contributions and salary sacrifice.