Using Unused Concessional Contributions – No Residency Requirement

Worldwide Advisory
3 days ago
2 min read

A common question we get from Australians with international ties is whether time spent overseas affects their ability to use carried-forward concessional contributions.

The law is clear: residency or citizenship status is not relevant.

What the Law Says

Section 291-20(3) of the Income Tax Assessment Act 1997 confirms there are no residency or citizenship requirements when accessing unused concessional contributions from the prior five years.

Even if you were a non-resident for part of that period, the unused amounts remain available – provided you satisfy the total super balance (TSB) test.

Example – Access in FY26

If your TSB is below $500,000 on 30 June 2025, you could in FY26 access unused concessional amounts from FY21 onwards.

This makes the rule especially useful for:

returning expats,
new arrivals to Australia, or
anyone with mixed periods of residency.

ATO Portal Glitches

Some clients have noticed their ATO portal/MyGov doesn’t display unused amounts correctly if they are overseas, recently returned or a new tax resident of Australia. This is a system glitch only. The legislation does not remove your entitlement.

Private Ruling Example

We’ve also seen a taxpayer apply for a private ruling to confirm their access to five years of unused amounts, including periods before they became an Australian tax resident. This reinforces the principle that residency status isn’t a limiting factor.

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Key Takeaway

Residency doesn’t affect access to your carried-forward concessional contributions. What matters is:

Your total super balance (must be below $500,000 at the prior 30 June).
The five-year carry-forward period.

⚠️ Important Disclaimer:

This article discusses the tax treatment of concessional contributions under Australian law. It does not take into account your personal circumstances and is not financial advice. You should seek independent advice before making any decisions about superannuation or contributions.