Key points
- The concessional (before-tax) cap is $32,500 in 2026–27, up from $30,000.
- The non-concessional (after-tax) cap is $130,000, or up to $390,000 using the three-year bring-forward.
- You can only make non-concessional contributions if your total super balance was under $2.1 million on 30 June 2026.
- Catch-up concessional contributions and the government co-contribution can add cap room for the right people.
Superannuation remains the most tax-effective savings vehicle available to most Australians. It comes with rules: caps on how much you can contribute, what type of contribution you can make, and when you can access extra cap room. The caps rose on 1 July 2026, so several of the figures you may have used last year have changed.
Here are the rules that apply in 2026–27, and the strategies worth knowing.
Concessional contributions: $32,500 a year
Concessional contributions are before-tax contributions: employer super guarantee (SG) payments, salary sacrifice amounts, and personal contributions you claim as a tax deduction.
The annual cap for 2026–27 is $32,500 per person, up from $30,000. This cap includes your employer’s SG contributions. With the super guarantee rate at 12%, an employee earning $200,000 will have $24,000 of their cap used by employer contributions alone. That leaves $8,500 for personal salary sacrifice or deductible contributions before the cap is reached.
Concessional contributions are taxed at 15% inside super when they enter the fund, or 30% if your combined income and contributions exceed $250,000 under Division 293 tax. For most Australians, that is well below their marginal tax rate.
Catch-up concessional contributions
If your total super balance was below $500,000 at 30 June of the prior year, you can use unused concessional cap from the previous five years on top of the current-year cap.
The carry-forward rules started on 1 July 2018, so 2018–19 was the first year unused cap began to accrue. An unused amount carries forward for five years and then expires, and the oldest slice is used first. Cap you didn’t use in 2020–21 drops off at the end of 2025–26. You can see how much you’ve built up in ATO online services through your myGov account, under the super section.
Someone with $400,000 in super who has built up $60,000 of unused concessional cap over five years can make a single $92,500 concessional contribution in 2026–27 (the current-year $32,500 plus the $60,000 catch-up), claim the deduction, and lift their retirement savings in one transaction.
The strategy suits people with uneven income or a one-off amount to shelter:
- Career breaks. Parental leave, study, or time out of the workforce leaves cap unused that you can reclaim later.
- Self-employment. Lean years with low contributions build room for a stronger one.
- A business sale or large capital gain. A single deductible contribution can offset tax on a capital gain made in the same year.
The $500,000 balance test is measured at 30 June of the prior year, so a strong investment year can lift you over the threshold and switch the strategy off for the next year. A contribution you planned for a future year may need to happen sooner, so model the timing with your superannuation advice team before 30 June.
Non-concessional contributions: $130,000 a year
Non-concessional contributions are after-tax contributions, money you have already paid tax on. The annual cap is $130,000 per person in 2026–27, up from $120,000.
These contributions are not taxed when they enter the fund, and earnings inside super are taxed at 15% rather than your marginal rate. Once in pension phase, earnings become tax-free.
Eligibility to make non-concessional contributions depends on your total super balance at 30 June of the prior year:
- Below $1.84 million: up to $130,000 per year, or $390,000 under the bring-forward rule
- $1.84m to under $1.97m: bring-forward limited to two years ($260,000)
- $1.97m to under $2.1m: standard cap only, no bring-forward ($130,000)
- $2.1 million or above: no non-concessional contributions allowed
The $2.1 million cut-off follows the general transfer balance cap, which also rose to $2.1 million on 1 July 2026.
The bring-forward rule
Australians under age 75 with a total super balance below the relevant threshold can bring forward up to three years of non-concessional contributions into a single year. That allows a contribution of up to $390,000 in one financial year.
The bring-forward is triggered automatically when you contribute more than $130,000 in a single year. Once triggered, you have a three-year window, and you cannot contribute beyond the allowance that window sets.
This rule is particularly useful for:
- Receiving a large inheritance or windfall
- Selling an investment property or business and wanting to shelter the proceeds in super
- Managing a spouse’s super balance to optimise the Age Pension assets test
Government co-contribution
If you earn below $49,293 in 2026–27 and make a personal (non-concessional) contribution, the government will co-contribute up to $500 to your super. The co-contribution tapers to zero at $64,293.
For eligible earners this is a 50% government return on contributions up to $1,000. If you or your spouse earn in this range, check your eligibility before 30 June.
The work test for ages 67–74
Australians between 67 and 74 must meet the work test (at least 40 hours of gainful employment in a 30-consecutive-day period during the financial year) to make personal deductible super contributions. There is a one-year exemption in the year after retiring, but only for those with a total super balance below $300,000.
This rule affects downsizer contribution strategy and the timing of non-concessional contributions for those approaching or recently in retirement planning.
Getting the right contribution mix for your situation is something our superannuation advice team can model for you. Contact us to make the most of this financial year’s caps before 30 June.