More Room to Grow Your Super: New Contribution Caps from 1 July 2026

There is positive news for individuals looking to build their retirement savings, with several important superannuation caps increasing from 1 July 2026.

The annual concessional contributions cap has increased to $32,500, while the non-concessional contributions cap has increased to $130,000. Eligible individuals may also be able to contribute up to $390,000 under the bring-forward rules.

The general transfer balance cap has also increased from $2 million to $2.1 million.

These increases provide additional opportunities to move funds into the concessionally taxed superannuation environment. However, the contribution rules remain complex, and exceeding a cap can result in additional tax and administrative costs.

Concessional contributions cap increases to $32,500

The annual concessional contributions cap has increased from $30,000 to $32,500 for the 2026–27 financial year.

Concessional contributions generally include:

• Employer superannuation guarantee contributions

• Salary-sacrifice contributions

• Personal contributions for which you claim a tax deduction

• Certain other employer contributions

All these amounts count towards the same annual cap.

For example, if your employer contributes $20,000 to super during 2026–27, you may only have $12,500 of the standard concessional cap remaining for additional salary-sacrifice or deductible personal contributions.

Concessional contributions are generally taxed at 15 per cent within the super fund, although additional tax may apply to higher-income earners under the Division 293 rules. The Division 293 income threshold remains unchanged at $250,000.

For many people, making additional concessional contributions can be a tax-effective way to build retirement savings, particularly where their personal marginal tax rate is higher than the tax rate applying within superannuation.

Non-concessional contributions cap increases to $130,000

The annual non-concessional contributions cap has increased from $120,000 to $130,000.

Non-concessional contributions are generally personal after-tax contributions for which no income tax deduction is claimed.

These contributions are not ordinarily taxed when received by the super fund because they are made using money on which tax has already been paid.

They may be useful for individuals who:

• Have surplus personal savings

• Receive an inheritance

• Sell an investment or other asset

• Receive proceeds from downsizing or restructuring

• Want to move more of their wealth into superannuation

• Are approaching retirement and want to increase their retirement savings

Your ability to make non-concessional contributions depends on your total superannuation balance at the previous 30 June.

If your total superannuation balance was $2.1 million or more at 30 June 2026, your non-concessional contributions cap for 2026–27 is generally nil.

Bring-forward contributions of up to $390,000

Eligible individuals under age 75 may be able to use the bring-forward rules to contribute up to three years of non-concessional contributions in a shorter period.

From 1 July 2026, the maximum amount available under the bring-forward rules has increased from $360,000 to $390,000.

The amount you can contribute depends on your total superannuation balance at 30 June 2026:

Total superannuation balance at 30 June 2026	Maximum non-concessional contributions	Bring-forward period
Less than $1.84 million	$390,000	3 years
$1.84 million to less than $1.97 million	$260,000	2 years
$1.97 million to less than $2.1 million	$130,000	No bring-forward
$2.1 million or more	Nil	Not available

The bring-forward rules can be valuable where someone receives a large amount of cash and wants to contribute it to superannuation sooner rather than spreading the contributions over several years.

However, once a bring-forward period has been triggered, later increases to the contribution caps do not generally increase the amount available during that existing period.

For example, someone who triggered the three-year bring-forward arrangement during 2025–26 may remain limited to the previous $360,000 amount for that bring-forward period. They do not automatically receive an additional $30,000 because the cap increased on 1 July 2026.

It is important to confirm whether the bring-forward arrangement has already been triggered before making any large contribution.

Catch-up concessional contributions remain available

Some individuals may be able to contribute more than the standard $32,500 concessional cap by using previously unused concessional contribution amounts.

To qualify, your total superannuation balance must generally have been less than $500,000 at 30 June 2026.

Unused concessional cap amounts can generally be carried forward for up to five financial years. During 2026–27, the oldest unused amount still available will generally be from the 2021–22 financial year.

Any unused 2021–22 concessional cap amount will generally expire if it is not used by 30 June 2027.

This can create a valuable planning opportunity for people who:

• Have sold an investment or business

• Receive a large bonus

• Return to work after a career break

• Have previously made limited superannuation contributions

• Have an unusually high-income year

• Want to reduce taxable income while building retirement savings

A simple example

Assume an individual has a total superannuation balance below $500,000 and has $40,000 of unused concessional cap amounts available from earlier years.

In addition to the standard $32,500 cap for 2026–27, they may potentially make concessional contributions of up to $72,500 during the year.

The actual amount available should be confirmed before contributing, as employer contributions and other amounts already received by the fund will also count towards the cap.

Your available unused concessional contribution amounts can generally be viewed through the ATO section of myGov. However, the information may not always reflect very recent contributions.

General transfer balance cap increases to $2.1 million

The general transfer balance cap has increased from $2 million to $2.1 million from 1 July 2026.

The transfer balance cap limits the amount that can be transferred into the retirement phase of superannuation, where investment earnings are generally exempt from tax.

Importantly, the increase to $2.1 million does not mean everyone who already has a retirement-phase pension can automatically transfer an additional $100,000 into pension phase.

Individuals who have previously commenced a retirement-phase income stream may only receive proportional indexation based on the amount of their transfer balance cap that they have not previously used.

Individuals who had already fully used their personal transfer balance cap before 1 July 2026 will generally not receive further indexation.

Anyone considering commencing or increasing a retirement-phase pension should confirm their personal transfer balance cap before transferring additional amounts.

Other important superannuation thresholds

Several other superannuation thresholds have also changed for 2026–27:

Measure	2025–26	2026–27
Concessional contributions cap	$30,000	$32,500
Non-concessional contributions cap	$120,000	$130,000
Maximum three-year bring-forward amount	$360,000	$390,000
General transfer balance cap	$2 million	$2.1 million
Small business CGT cap amount	$1.865 million	$1.935 million
Defined benefit income cap	$125,000	$131,250
Downsizer contribution limit	$300,000	$300,000
Division 293 income threshold	$250,000	$250,000

The superannuation guarantee rate remains at 12% for 2026–27.

The maximum earnings base on which an employer is required to pay compulsory superannuation has increased to $270,830 per year, following the commencement of Payday Super from 1 July 2026. This produces maximum compulsory superannuation guarantee contributions of approximately $32,500 for the year.

Do not contribute without checking the rules

The increased caps provide greater flexibility, but the amount you can contribute will depend on your individual circumstances.

Before making a significant contribution, it is important to consider:

• Your age and whether the fund can accept the contribution

• Your total superannuation balance at 30 June 2026

• Contributions already made by your employer

• Any salary-sacrifice arrangements

• Personal deductible contributions already made

• Whether you have triggered the bring-forward rules

• Your available unused concessional cap amounts

• Whether Division 293 tax may apply

• Your personal transfer balance cap

• Your expected cash-flow requirements outside superannuation

Money contributed to superannuation is generally preserved until a condition of release is met. The tax benefits should therefore be considered alongside your age, liquidity requirements, debt position and broader family goals.

We are here to help

The higher contribution caps create valuable opportunities for individuals and families to increase their retirement savings in a tax-effective environment.

The best strategy may involve a combination of concessional contributions, catch-up contributions, non-concessional contributions, the bring-forward rules or small business CGT contributions.

If you are considering making additional superannuation contributions during 2026–27, please contact our office before proceeding.

We are here to help you confirm the amount you can contribute, avoid exceeding the relevant caps and develop a strategy that aligns with your age, tax position, retirement plans and broader family goals.