The Australian Government has confirmed the superannuation contribution caps for the 2026-27 financial year. Whether you're salary sacrificing, making personal contributions, or planning a large one-off deposit, understanding these limits is essential to avoid excess contributions tax.
What Are the Caps for 2026-27?
The contribution caps are indexed periodically in line with Average Weekly Ordinary Time Earnings (AWOTE). For the 2026-27 financial year:
- Concessional (before-tax) contributions cap: $30,000 per year
- Non-concessional (after-tax) contributions cap: $120,000 per year
- Total superannuation balance threshold: $1.9 million (for non-concessional eligibility)
- Transfer balance cap: $1.9 million
Concessional Contributions: What Counts?
Concessional contributions include your employer's Superannuation Guarantee (currently 12%), any salary sacrifice amounts, and personal contributions you claim as a tax deduction. All of these are taxed at 15% inside your super fund — generally much lower than your marginal tax rate.
If you earn over $250,000 in combined income, an additional 15% tax (Division 293) applies to some or all of your concessional contributions.
Carry-Forward (Catch-Up) Contributions
If your total super balance was below $500,000 on the previous 30 June, you may be able to use unused concessional cap amounts from up to five prior financial years. This is a powerful strategy for those who've had career breaks, worked part-time, or simply haven't maximised contributions in recent years.
For example, if you only contributed $20,000 in concessional contributions last year (against the $30,000 cap), you'd have $10,000 of unused cap space to carry forward and use this year — allowing you to contribute up to $40,000 in concessional contributions.
Non-Concessional Contributions: The Bring-Forward Rule
If you're under 75, you may be able to use the bring-forward rule to contribute up to three years' worth of non-concessional contributions in a single year — that's up to $360,000 in one hit. This is particularly useful when receiving an inheritance, selling a property, or consolidating investments into super.
However, you can only access the bring-forward rule if your total super balance is below certain thresholds on the previous 30 June:
- Below $1.66 million: full 3-year bring-forward ($360,000)
- $1.66m to $1.78m: 2-year bring-forward ($240,000)
- $1.78m to $1.9m: standard cap only ($120,000)
- $1.9 million or above: no non-concessional contributions allowed
What Happens If You Exceed the Caps?
Exceeding the concessional cap means the excess is included in your assessable income and taxed at your marginal rate (with a 15% tax offset for tax already paid in the fund). You may also be liable for an excess concessional contributions charge.
Exceeding the non-concessional cap triggers a more punitive outcome — you'll either need to withdraw the excess (plus associated earnings, taxed at your marginal rate) or leave it in super and pay 47% tax on the excess amount.
Practical Tips Before 30 June
Here are some strategies to consider before the end of the financial year:
- Check your year-to-date concessional contributions via MyGov (note: employer contributions can take weeks to appear)
- If you have unused carry-forward cap space, consider making a personal deductible contribution and lodging a Notice of Intent to Claim
- Review whether the bring-forward rule makes sense if you have surplus cash outside super
- Ensure contributions are received by your fund before 30 June — not just sent
- If you're approaching $1.9 million in total super, seek advice before making non-concessional contributions
Need Help Maximising Your Super?
Super contribution strategies can get complex, especially when factoring in carry-forward rules, Division 293, the transfer balance cap, and your overall retirement plan. Getting it right can save you thousands in tax and significantly boost your retirement savings.
At LifeScope Wealth, we help clients develop personalised super strategies that align with their broader financial goals. If you'd like to review your contribution strategy before 30 June, book a free consultation with us today.
Disclaimer: This article provides general information only and does not constitute personal financial advice. Superannuation rules are complex and subject to change. Please consult a qualified financial adviser before making decisions about your super contributions.