In recent months, I have been contacted by several people who retired at the end of the previous financial year. Unfortunately, before retiring they did not take advantage of the superannuation concessional catch-up contribution provision, which could have saved them thousands of dollars in taxation benefits. These potential savings highlight the benefit of seeking good financial advice before you finish work.

How does it work?

Each financial year, concessional contributions of up to $27,500 before tax can be placed into a super fund. For the four financial years from 1st July 2017, the concessional contribution cap was $25,000. These contributions can be from a person’s employer, voluntary, or a combination of both and are taxed at a rate of 15% – Potentially lower than your marginal tax rate. On 1st July 2018, the superannuation concessional catch-up contribution provision was introduced. This allowed any unused portions of the super concessional contributions to be carried forward, for a period of five years, which can deliver significant tax benefits. Super balances must be less than $500,000 to take advantage of the scheme.

Case study

Mary is a full-time worker earning $150,000 per annum, and she plans to retire at the end of the 2022/23 financial year. Mary is considering making additional concessional contributions to her super fund to increase her retirement benefits. Her contributions in previous years, including the unused amounts since 2018/19 are summarised below.

Financial year

Concessional contribution made

General concessional contribution cap







Nil (leave without pay)











Based on this information, Mary is eligible to make catch-up concessional contributions to her super fund of $52,500. This is in addition to taking advantage of the $27,500 annual cap for the 2022/23 financial year. Mary intends to claim $64,250 as a personal concessional deductible contribution, made up of the $52,500 outlined above, plus $11,750 for 2022/23. This will return Mary a net tax benefit of $13,879, including Medicare.

This case study assumes that Mary qualifies to make catch-up contributions based on the set criteria. Further consideration would need to be given, as to whether a concessional contribution is the most appropriate option for Mary. We would need to discuss if catch-up contributions are relevant to you or direct our attention to different retirement strategies that are more suited to your personal circumstances.

Remember, it is never too soon to start planning for your retirement. Please call me, Alex Brown, to discuss how you can take advantage of the superannuation concessional catch-up contribution provision and other retirement planning strategies.

The information provided is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives, and requirements. Please seek financial advice before making any financial decisions.

Written by Alex Brown

Alex Brown Strategic Financial Planners Pty Ltd ABN 31 655 725 787
8 Union Street, Gawler East SA 5118
PO Box 2025 Gawler SA 5118
T: (08) 8520 8500