This case study is for illustrative purposes only and does not constitute personal financial advice. Please speak to a licensed adviser to assess your individual circumstances.
Client Profile
- Name: Sarah
- Age: 52
- Superannuation Balance (as of 30 June 2024): $420,000
The Situation
Sarah had taken time out of the workforce in her 40s to care for her children and work part-time. As a result, she hadn’t always maximised her concessional (pre-tax) superannuation contributions. Now, she’s preparing to sell an investment property, triggering a large capital gains tax liability.
She wants to reduce her taxable income this financial year and boost her retirement savings at the same time.
The Opportunity
Because Sarah’s total superannuation balance was under $500,000 as of 30 June 2025, she was eligible to use the carry-forward concessional contributions provision. This provision allows individuals to make extra concessional contributions by using up unused cap amounts from the previous five financial years.
Sarah had the following unused concessional caps:
| Financial Year | Cap | Contributions Made | Unused Amount |
| 2020–21 | $25,000 | $10,000 | $15,000 |
| 2021–22 | $27,500 | $11,000 | $16,500 |
| 2022–23 | $27,500 | $12,000 | $15,500 |
| 2023–24 | $27,500 | $13,000 | $14,500 |
| 2024–25 | $30,000 | $14,000 | $16,000 |
Total unused concessional contributions available: $77,500
Plus FY2025–26 cap: $30,000
Total available to contribute in 2025–26: $107,500
The Strategy
Sarah worked with her financial adviser to:
- Make a $107,500 concessional contribution in the 2025–26 financial year
- Claim a tax deduction for the full amount, helping offset the capital gain from the property sale
- Ensure contributions were timed correctly to meet eligibility and maximise tax efficiency
The Outcome
- Sarah significantly reduced her personal income tax liability for the year
- She boosted her retirement savings in a single financial year
- She made up for earlier years when she couldn’t contribute as much due to family commitments
Key Takeaway
If you’re selling an asset and facing a capital gains tax bill, catch-up concessional contributions can be a powerful way to reduce tax and grow your superannuation, especially if your balance is under $500,000.
Want to know how much you could contribute?
Let’s have a conversation about your superannuation strategy today.
