Information update as of September 2026: the caps in this video have changed. The concessional contributions cap is now $32,500 a year (from 1 July 2026), and the extra 15% Division 293 tax applies once income is over $250,000, not $200,000 as stated in the video.

Concessional contributions are super contributions made before tax, or that someone claims a tax deduction for: your employer's super guarantee, salary sacrifice and personal contributions you claim as a deduction. They're taxed at 15% in the fund. From 1 July 2026 the concessional cap is $32,500 a year (it was $30,000 for 2024–25 and 2025–26). If your income plus concessional contributions is over $250,000, an extra 15% Division 293 tax applies.

In this video, McKern financial adviser Kristian Tangan explains how the cap works and the catch-up rule: if your total super balance was under $500,000 on 30 June of the previous year, you can use unused cap amounts from up to the previous five years. That can be a powerful way to reduce tax in a year with a large capital gain, such as selling an investment property.

In this video

0:00 What are concessional contributions?

1:05 How much is the contributions tax rate?

1:50 How much can I contribute each year?

2:32 Can I catch up on unused cap from previous years?

3:16 Why catch-up contributions can help at tax time

3:58 Where to get more information

General information only, not personal advice.