From 1 July 2026, the superannuation contribution caps have increased following the annual indexation process. For anyone looking to build their retirement savings, reduce their taxable income through super contributions, or make the most of catch-up opportunities, the new financial year brings genuine new capacity to act.

The new caps for 2026-27

The confirmed caps from 1 July 2026 are:

• Concessional contributions cap: $32,500 per year (up from $30,000 in 2025-26). Concessional contributions include employer superannuation guarantee contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed.
• Non-concessional contributions cap: $130,000 per year (up from $120,000 in 2025-26). Non-concessional contributions are made from after-tax income and receive no additional tax deduction.
• Bring-forward maximum: $390,000 over 3 years (up from $360,000), subject to total superannuation balance eligibility conditions at 30 June 2026.
• Transfer balance cap: $2.1 million (up from $2.0 million in 2025-26). This is the maximum that can be held in a tax-free retirement phase income stream.
  

Why the concessional cap increase matters

The increase in the concessional cap from $30,000 to $32,500 creates an additional $2,500 per year of superannuation contributions that can be made at the concessional tax rate of 15% inside the fund, rather than at your marginal income tax rate.

For someone on the 37% marginal rate, the tax saving on that additional $2,500 is approximately $550 per year. For someone on the top 47% rate (including Medicare levy), the saving is approximately $800 per year. These are net savings after accounting for the 15% contributions tax inside the fund.

If you have a salary sacrifice arrangement currently set at a fixed dollar amount, it is worth reviewing whether your arrangement captures the new cap, particularly if you were previously contributing close to the old $30,000 limit.

Catch-up concessional contributions

If your total superannuation balance was below $500,000 on 30 June 2026, you may be eligible to use unused concessional contribution cap amounts from earlier years. Unused amounts can be carried forward for up to five years and used in addition to the current year cap.

For example: if you had a total super balance of $260,000 at 30 June 2026 and had not maximised your concessional contributions in prior years, you could potentially contribute significantly more than $32,500 in 2026-27 by drawing on those unused cap amounts. The maximum available depends on your contribution history since 2019-20.

Note that unused cap amounts from the 2020-21 financial year expire on 30 June 2026 and cannot be carried forward into 2026-27. If you had unused cap space in that year and did not use it, it is now lost.

Non-concessional contributions and the bring-forward rule

The increase in the non-concessional cap to $130,000 also increases the maximum available under the bring-forward rule to $390,000, for those who are eligible.

The bring-forward rule allows individuals to contribute up to 3 years of non-concessional contributions in a single year. Eligibility depends on your total superannuation balance at 30 June of the prior year:

• Balance below $1.84 million at 30 June 2026: maximum bring-forward of $390,000 over three years
• Balance of $1.84 million to below $1.97 million: maximum of $260,000 over two years
• Balance of $1.97 million to below $2.1 million: maximum of $130,000 in the current year only
• Balance at or above $2.1 million (the transfer balance cap): non-concessional contributions cap is nil

If you triggered the bring-forward rule in either 2024-25 or 2025-26 and are still in a bring-forward period, the new higher caps may not immediately apply to you. The bring-forward arrangement locks in the cap amounts that applied in the year the arrangement was triggered.

Interaction with Division 296 for high-balance members

Members with a total superannuation balance above $3 million are now subject to the Division 296 additional tax, which took effect on 1 July 2026. This imposes an additional 15% tax on earnings attributable to the portion of the balance above $3 million (and 25% above $10 million).

For members approaching or above the $3 million threshold, the decision about whether to make additional concessional or non-concessional contributions requires careful modelling. Additional contributions may increase the balance subject to Division 296 tax, which affects the net benefit of the contribution. This is an area where personalised advice is particularly important.

Planning conversations worth having now

The start of the financial year is the best time to review your superannuation contribution strategy. Whether you are looking to maximise salary sacrifice, make personal deductible contributions, use the bring-forward rule, or understand how Division 296 affects your position, the decisions made early in the year compound over time. Please contact us to discuss your 2026-27 super strategy.

Please contact us if you have any questions - email us or phone our team on 02 9899 3044.