Super Contribution Caps 2026: What Changes and What to Do
Last updated: April 2026
From 1 July 2026, the amount you can contribute to super goes up. The concessional cap rises from $30,000 to $32,500. The non-concessional cap jumps from $120,000 to $130,000. And the transfer balance cap increases to $2.1 million.
That’s the headline. But most people will do absolutely nothing with this information. They’ll skim it, think “cool, more super”, and go back to whatever they were doing. And that’s exactly how high-income earners end up working five to ten years longer than they need to.
Tax is not a detail. Tax is a lever. And super is one of the biggest levers you’ve got. Every dollar of unused concessional cap is money you’ve voluntarily handed to the ATO instead of putting to work in a lower-tax environment. At a 47% marginal rate, that’s not a rounding error. It’s a permanent dent in your timeline to financial freedom.
This guide breaks down every change, walks through the numbers at different income levels, and maps out exactly what to action before and after 30 June. If you’re earning well and you haven’t reviewed your super strategy recently, this is the post to read before you do anything else.
The quick answer
Super contribution caps are indexed to wages and inflation. When those benchmarks hit certain thresholds, the caps step up. That’s happening on 1 July 2026.
| What’s changing | 2025–26 (current) | 2026–27 (from 1 July) |
| Concessional (before-tax) cap | $30,000 | $32,500 |
| Non-concessional (after-tax) cap | $120,000 | $130,000 |
| Bring-forward maximum (3 years) | $360,000 | $390,000 |
| Transfer balance cap | $2,000,000 | $2,100,000 |
| SG rate | 12% | 12% (unchanged) |
| Payday super | Quarterly | Per pay cycle |
Sources: ATO contribution caps and Grant Thornton indexation update.
Concessional contributions: the cap that matters most
The concessional cap is the annual limit on before-tax contributions to your super. It covers employer Super Guarantee (SG), salary sacrifice, and any personal contributions you claim as a tax deduction. From 1 July 2026, this cap rises to $32,500.
For most high-income earners, this is the most powerful lever. Concessional contributions are taxed at 15% inside super (or 30% if Division 293 applies), compared to your marginal rate of up to 47% outside. That gap between 47% and 15% is where wealth gets built faster. It’s the same income, just a different outcome depending on whether you use the rules or ignore them.
What this looks like at $250,000 income
Say you earn $250,000 and your employer contributes 12% SG, which is $30,000. Under the current $30,000 cap, that SG alone fills your entire concessional cap. There’s zero room for additional salary sacrifice or personal deductible contributions.
From 1 July, the new $32,500 cap gives you $2,500 of headroom above SG. That’s an extra $2,500 you can salary sacrifice or contribute personally and claim as a deduction. At a 47% marginal rate (including Medicare), that $2,500 deduction saves you $1,175 in personal tax. After 15% contributions tax inside super, the net benefit is around $800 per year.
$800 a year sounds small. But this is the kind of thinking that keeps people stuck. $800 per year compounding at 8% for 20 years is over $39,000. For 30 years, it’s over $97,000. And that’s just one lever. Virgin Millionaires don’t build wealth from a single move. They build it by stacking every available edge, year after year, until the compounding does the heavy lifting.
What this looks like at $180,000 income
At $180,000, your SG is $21,600. That leaves $10,900 of cap space under the new limit. If you use all of it via salary sacrifice or personal deductible contributions, you’re looking at a personal tax saving of around $4,251 (at 39% marginal including Medicare), minus $1,635 in contributions tax. Net benefit: roughly $2,616 per year, plus your super balance grows faster in a lower-tax environment.
If you want the full playbook on using super contributions to cut your tax bill, our detailed guide on super contributions to save tax walks through every strategy with worked examples.
Non-concessional contributions: the after-tax opportunity
Non-concessional contributions are made from after-tax money. You don’t get a deduction on the way in, but once inside super, the money grows at lower tax rates (15% in accumulation, potentially 0% in retirement phase). The annual cap rises to $130,000 from 1 July.
This matters most if you’ve had a liquidity event, sold a property, or you’ve been building cash in an offset without a clear deployment plan. Cash sitting idle is cash going backwards against inflation. The non-concessional cap is how you move larger sums into super’s lower-tax environment and put it to work.
The bring-forward rule
If you’re under 75, you can “bring forward” up to three years of non-concessional caps into a single year. From 1 July 2026, that maximum jumps to $390,000 (3 x $130,000), up from the current $360,000.
Eligibility depends on your total super balance (TSB) at the previous 30 June. If your TSB at 30 June 2026 is below $1.84 million, you can access the full three-year bring-forward. Between $1.84 million and $1.97 million, you get a two-year bring-forward ($260,000). Between $1.97 million and $2.1 million, you’re limited to the single annual cap of $130,000. At $2.1 million or above, your non-concessional cap is nil.
Timing tip: If you’re thinking about a large non-concessional contribution, it may be worth waiting until after 1 July to trigger the bring-forward under the higher caps. A $120,000 contribution now locks you into the old $360,000 maximum. Waiting could give you access to $390,000 instead. Get advice on the timing before you move.
Carry-forward concessional contributions: the expiring opportunity
If your total super balance is under $500,000 at 30 June of the prior year, you can carry forward unused concessional cap from the previous five years and use it all in a single year. This is one of the most powerful tax deduction tools in the system.
The deadline that matters here is that unused cap from 2020–21 expires permanently on 30 June 2026. That’s a $25,000 annual cap year. If you had SG of $10,000 that year and didn’t top up, you’ve got $15,000 of unused cap that vanishes forever after 30 June.
In 2026–27, the maximum possible carry-forward concessional contribution could be as high as $175,000 for someone who used almost none of their caps over the past five years. That’s a serious one-off tax deduction. The kind of move that can shift your entire financial trajectory for the year.
Indecision is the most expensive habit in personal finance. This isn’t a decision you can defer. If the cap expires unused, it’s gone. No extensions. No second chances. Check your position now.
This is one of the most powerful plays in the how to reduce taxable income toolkit, especially if you’ve had a high-income year or a bonus that’s pushed you into a higher bracket.
Payday super: what changes for employees and employers
From 1 July 2026, employers must pay SG contributions within seven business days of each payday. This replaces the old quarterly model where SG could legally sit with your employer for up to three months before hitting your super account.
For employees, this means your super gets invested sooner, which means more time compounding. Over a career, the difference is real. It also makes it easier to spot if your employer isn’t paying your super on time, because the ATO will have near real-time visibility.
For employers, payroll and clearing house systems need to be ready before 1 July. If you run a business, check your payroll provider’s timeline now. If you want to understand how SG fits into your broader tax planning strategy, it’s worth reviewing your full picture before the new financial year starts.
Division 296: the new super tax on balances over $3 million
Also starting 1 July 2026, Division 296 introduces an additional tax on super earnings for individuals with a total super balance above $3 million. The legislation passed Parliament in March 2026, so this is now confirmed law.
The key details: an additional 15% tax applies to earnings on the portion of your balance above $3 million. For balances above $10 million, the additional rate is 25%. Both thresholds are indexed to CPI. Crucially, the final legislation taxes realised earnings only. The earlier proposal to tax unrealised gains was removed.
For SMSFs, there’s a cost-base reset option at 30 June 2026 that can exclude pre-July 2026 capital gains from the Division 296 calculation. But you need to opt in before the due date for your 2026–27 return. This isn’t automatic.
If your balance is approaching $3 million, contribution strategy and how you structure your investments become critical conversations. The right structure can mean the difference between paying Division 296 tax and not. This is exactly the kind of decision where the cost of getting advice is dwarfed by the cost of getting it wrong.
Transfer balance cap: more room in retirement phase
The transfer balance cap (TBC) limits how much you can move into the tax-free retirement phase of super. From 1 July 2026, the general TBC rises to $2.1 million, up from $2 million.
If you’re approaching retirement or already drawing a pension from super, this matters. The higher cap means more of your super can sit in an environment where investment earnings are taxed at 0%. It also reopens non-concessional contribution eligibility for people whose balances had previously locked them out.
Your pre-30 June 2026 checklist
These are the things to review before the financial year closes. The wealthy don’t wing it. They systemise it. Treat this as your pre-EOFY operating checklist:
✓ Check your unused carry-forward concessional cap. Log into myGov or call your fund. Any unused 2020–21 cap expires 30 June 2026. If your TSB is under $500,000, this is your last chance to use it.
✓ Calculate your remaining concessional cap space for 2025–26. Your SG plus any salary sacrifice already made this year counts against the $30,000 cap. Work out how much room you have left and whether a personal deductible contribution before 30 June makes sense.
✓ If you’re planning a large non-concessional contribution, decide whether to act now or wait. If your balance positions you for a bigger bring-forward after 1 July under the new caps, waiting may be the smarter move.
✓ Lodge your notice of intent to claim a deduction with your super fund. This needs to be acknowledged by your fund before you lodge your tax return. Don’t leave this until October.
✓ Review your super balance relative to the new thresholds. If you’re approaching $3 million, $2.1 million, or $500,000, the strategy shifts meaningfully. Get specific advice.
For the full EOFY picture beyond super, including investment timing, offset account strategy, and CGT loss harvesting, keep an eye out for our EOFY 2026 checklist (coming June). In the meantime, our guide to common ATO mistakes is worth a read before you lodge.
What to action after 1 July 2026
Increase your salary sacrifice. If your employer handles it via payroll, update the amount from 1 July to reflect the higher cap. Even $2,500 more per year makes a meaningful difference over 20 years of compounding.
Trigger a bring-forward if it makes sense. If you’ve been waiting for the higher non-concessional caps, July is when you can move. Confirm your TSB at 30 June 2026 first.
Review spouse contributions. With the TBC rising to $2.1 million, the eligibility thresholds for spouse contributions also shift. If one partner’s balance is well below the cap, contributing to their account can be a way to balance things out and manage Division 296 exposure.
Model your long-term position. Use a compound interest calculator to see what the higher caps mean for your balance at retirement. Small annual increases compound into serious numbers over 15 to 20 years.
The mistakes that cost people money
Most people don’t fail with money because they make terrible decisions. They fail because they make no decisions. These are the ones we see most often with super contributions:
Assuming SG fills your cap. At $250,000 income, 12% SG is $30,000, which matches the current concessional cap exactly. Many people assume there’s no room for personal contributions. From 1 July, there is. Don’t leave $2,500 of tax-advantaged cap space on the table because you didn’t check.
Missing the carry-forward window. Unused cap from 2020–21 disappears after 30 June 2026. If your balance is under $500,000 and you’ve got unused space, this is a one-time opportunity that won’t come back. The cost of missing this isn’t a few hundred dollars. It’s the compounding you’ll never recover.
Triggering a bring-forward at the wrong time. If you make a non-concessional contribution that triggers the bring-forward in 2025–26, you’re locked into the old $360,000 maximum. If you can wait until July, you get $390,000 instead.
Forgetting the notice of intent. You can make a personal contribution to super and claim a deduction, but only if you lodge a valid notice of intent with your fund and it’s acknowledged before you file your return. Miss this step and the contribution becomes non-concessional.
Treating super as “locked up” money and ignoring it. This is the “set and forget” trap. Yes, super is locked until preservation age. But the tax savings happen now, the compounding starts now, and the decisions you make (or don’t make) right now determine whether you hit your freedom number a decade early or a decade late.
FAQs
What is the concessional super contribution cap for 2026–27?
The concessional contribution cap increases to $32,500 from 1 July 2026, up from $30,000 in 2025–26. This covers employer SG, salary sacrifice, and personal deductible contributions combined.
What is the non-concessional contribution cap for 2026–27?
The non-concessional cap rises to $130,000 per year. If you’re under 75 and eligible for the bring-forward rule, you can contribute up to $390,000 in a single year, depending on your total super balance.
When do the new super contribution caps take effect?
1 July 2026. Contributions made before 30 June 2026 are assessed against the current caps ($30,000 concessional, $120,000 non-concessional).
What is payday super and when does it start?
From 1 July 2026, employers must pay SG within seven business days of each payday, instead of quarterly. Your super gets invested sooner and the ATO can identify late payments faster.
Can I still use carry-forward concessional contributions in 2026–27?
Yes, if your total super balance is under $500,000 at 30 June of the prior year. You can use unused concessional cap from the past five years. But any unused cap from 2020–21 expires permanently on 30 June 2026.
What is Division 296 and does it affect my super contributions?
Division 296 is a new tax on super earnings for individuals with a total balance above $3 million, effective 1 July 2026. It doesn’t change the contribution caps, but it changes the calculus of how much you want inside super if you’re approaching that threshold.
Should I make a lump-sum super contribution before or after 1 July 2026?
It depends on your balance, whether you’ve triggered a bring-forward, and whether you have expiring carry-forward cap. In many cases, waiting until July gives you access to higher caps. But if you have unused 2020–21 concessional cap expiring 30 June, you need to act before then. Get advice specific to your numbers.
What to do next
If you’re earning well and you’re not actively managing your super contribution strategy, you’re leaving money on the table. Not in a vague, theoretical way. In a “you just paid thousands more tax than you needed to and delayed your financial freedom by another year” way.
The moves you make in the next 12 weeks, before and after 30 June, could save you thousands in tax and set your super balance on a meaningfully different trajectory. Every year you wait is money you’ll never get back. That’s not a scare tactic. It’s compound interest working in reverse.
Run the numbers with our compound interest calculator to see what the difference looks like over 10, 20, and 30 years. Then decide if leaving cap unused is a trade-off you’re comfortable making.
If you want help mapping out a contribution strategy that accounts for the cap changes, carry-forward, Division 296, and how it all fits with your broader wealth plan, book a pre-EOFY strategy call with the Pivot Wealth team. We’ll run the numbers and help you work out what to action before 30 June and what to set up for 1 July.
Or, if you want to start building your investing knowledge and get a clear picture of what financial freedom actually looks like for your situation, jump into the Smart Money Accelerator for free. Same income. Different future. That’s not a tagline. It’s a maths problem, and the answer starts with using every lever available to you.
Disclaimer: This is general information for Australians. It isn’t personal financial, tax, or legal advice. Consider getting advice from a licensed financial adviser and a registered tax agent before acting.