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Supercharge your retirement savings with Catch-Up Contributions

Updated: 4 days ago

Helping clients maximize their retirement savings is a top priority for Financial Planners. Catch-up contributions, also known as carry-forward contributions, are a valuable yet often overlooked strategy. In this blog, we'll explore what catch-up contributions are and the benefits they offer.

What Are Catch-Up Contributions?

Catch-up contributions allow Australians to contribute more than the standard annual limits to their superannuation in a financial year. If you haven't fully utilised your annual contribution limits in the past, you can carry forward the unused portion and contribute more in a future year.

Benefits of Catch-Up Contributions:

  1. Boost Retirement Savings: Catch-up contributions let you make up for missed opportunities and increase your retirement nest egg.

  2. Tax Efficiency: Contributions are taxed at the concessional rate of 15%, often lower than your marginal tax rate. Additionally, investment earnings within super are taxed at only 15% which could be lower than if you hold investments in your personal name.

  3. Capitalise on Unused Limits: You can carry forward unused concessional contribution limits for up to five years.

  4. Flexibility in Timing: Plan your contributions strategically based on when you are anticipating a capital gains tax event.

  5. Bridge Retirement Savings Gaps: Ideal for those with irregular income or career breaks.

How to Make Catch-Up Contributions:

To make catch-up contributions, you should meet specific criteria:

  1. Total Superannuation Balance: Ensure your balance is below the $500,000 cap at the end of the previous financial year.

  2. Use Unused Contribution Caps: You can carry forward unused caps from the previous five years.


Catch-up contributions are a powerful tool. They provide a tax-efficient way to enhance retirement savings, bridge gaps, and align superannuation with financial goals.

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