Topping up your super can cut your tax, but only up to a limit. Go over a cap and the tax saving can turn into extra tax, sometimes at the top marginal rate.
This guide sets out the super contribution caps for 2025-26, the year now being reported in tax returns, and 2026-27, the current year. It covers concessional and non-concessional caps, carry-forward, bring-forward, Division 293 and what happens if you exceed a cap. Every figure was checked against the ATO contributions caps page and the ATO transfer balance cap page.
It is written for employees, sole traders and business owners planning extra contributions before 30 June. If you contribute through your employer, our salary sacrifice guide explains how the arrangement works.
Key takeaways
- Concessional cap: $30,000 for 2025-26, rising to $32,500 for 2026-27.
- Non-concessional cap: $120,000 for 2025-26 and $130,000 for 2026-27.
- Bring-forward allows up to $390,000 in 2026-27 if your total super balance was under $1.84 million.
- Carry-forward of unused concessional caps needs a total super balance under $500,000 on 30 June of the previous year.
- Division 293 adds 15% tax on contributions when income plus concessional contributions exceeds $250,000.
- Your non-concessional cap is nil if your balance is at or above $2 million (2025-26) or $2.1 million (2026-27).
Super contribution caps at a glance
| Cap or threshold | 2025-26 | 2026-27 |
|---|---|---|
| Concessional contributions cap | $30,000 | $32,500 |
| Non-concessional contributions cap | $120,000 | $130,000 |
| Maximum bring-forward (3 years) | $360,000 | $390,000 |
| Balance at which non-concessional cap is nil | $2 million | $2.1 million |
| Carry-forward balance limit | Under $500,000 | Under $500,000 |
| CGT cap amount | $1,865,000 | $1,935,000 |
| Division 293 threshold | $250,000 | $250,000 |
| Super guarantee rate | 12% | 12% |
Source: ATO – Contributions caps, ATO – Non-concessional contributions cap, ATO – Transfer balance cap, ATO – Super guarantee, checked 9 October 2026.
What are concessional and non-concessional contributions?
Concessional contributions are made before tax. They include employer super guarantee, salary sacrifice and personal contributions you claim as a tax deduction. Your fund generally pays 15% tax on them.
Non-concessional contributions are made from after-tax money, such as a personal contribution you do not claim a deduction for. They are not taxed when they go into the fund, as long as you stay within the cap.
Each type has its own annual cap. The caps apply per person across all your super funds, not per fund.
How does the concessional cap work?
For 2025-26 the concessional cap is $30,000. From 1 July 2026 it is $32,500. Everything before tax counts: your employer’s 12% super guarantee, any salary sacrifice and any personal contribution you claim as a deduction.
From 1 July 2026, Payday Super also means employers must pay super with each pay cycle. Our Payday Super guide covers the timing. More regular payments make it easier to track how much of your cap is used.
Carry-forward of unused concessional caps
Under the ATO concessional cap rules, if your total super balance was under $500,000 on 30 June of the previous year, you can use unused concessional cap amounts from up to five previous years, starting from 2018-19. Unused amounts expire after five years, and the oldest amounts are used first.
For 2026-27, that generally means unused amounts from 2021-22 to 2025-26. Your myGov account shows your available carry-forward amounts.
How do the non-concessional cap and bring-forward rule work?
The non-concessional cap is $120,000 for 2025-26 and $130,000 for 2026-27. If you are under 75 at any time in the year, you may be able to bring forward up to two future years of caps, depending on your total super balance on 30 June of the previous year.
| Total super balance on 30 June 2026 | Maximum non-concessional contributions in 2026-27 | Bring-forward period |
|---|---|---|
| Under $1.84 million | $390,000 | 3 years |
| $1.84 million to under $1.97 million | $260,000 | 2 years |
| $1.97 million to under $2.1 million | $130,000 | No bring-forward |
| $2.1 million or more | Nil | Not available |
Source: ATO – Non-concessional contributions cap, checked 9 October 2026. For 2025-26 the equivalent thresholds were $1.76 million ($360,000), $1.88 million ($240,000) and $2 million ($120,000).
Your total super balance is measured at 30 June before the year you contribute, so a large balance can switch off non-concessional contributions entirely.
What is Division 293 tax?
Division 293 is an extra 15% tax on concessional contributions for higher earners. It applies when your income plus concessional contributions is more than $250,000. The tax is 15% of the lesser of the amount over $250,000 and your taxable concessional contributions.
Income for this test follows the Medicare levy surcharge definition and includes taxable income, reportable fringe benefits and net investment and rental losses. Separately, a new Division 296 tax on balances over $3 million started from 1 July 2026.
What happens if I exceed a contributions cap?
- Excess concessional contributions are added to your assessable income and taxed at your marginal rate, less a 15% offset. You can release up to 85% of the excess from super to pay the tax. Any amount not released counts toward your non-concessional cap. The old excess concessional contributions charge stopped from 1 July 2021.
- Excess non-concessional contributions give you 60 days to choose. You can release the excess plus 85% of associated earnings, with the earnings taxed at your marginal rate less a 15% offset. Or you can leave it in super and pay tax on it at 47%.
If you are near retirement and need to access super, our superannuation withdrawal support page explains how we help.
Worked example: using carry-forward in 2026-27
Priya earns a $100,000 salary. Her employer pays 12% super guarantee: $100,000 x 12% = $12,000. Her total super balance on 30 June 2026 was $380,000, and her myGov account shows $40,000 of unused concessional cap from 2021-22 to 2025-26.
Her limit for 2026-27: $32,500 + $40,000 = $72,500. Room left after employer super: $72,500 – $12,000 = $60,500.
She also has a $50,000 net capital gain, so her taxable income would be $150,000. She contributes $60,500, gives her fund a notice of intent and claims a deduction, bringing her taxable income to $89,500.
Tax saved using the 2026-27 resident rates plus 2% Medicare levy: $15,000 at 39% (37% + 2%) = $5,850, and $45,500 at 32% (30% + 2%) = $14,560. Total $20,410.
Contributions tax in the fund: $60,500 x 15% = $9,075. Net saving: $20,410 – $9,075 = $11,335. Her income plus concessional contributions stays below $250,000, so Division 293 does not apply.
Rule of thumb: Before any personal top-up, add up what your employer has already paid this year, check your myGov carry-forward balance, and keep a buffer below the cap.
Common mistakes with super contribution caps
- Forgetting employer super counts. Super guarantee and salary sacrifice use up the concessional cap first.
- Missing the notice of intent. No acknowledged notice means no deduction for a personal contribution.
- Using old balance thresholds. The 2026-27 bring-forward thresholds are $1.84 million, $1.97 million and $2.1 million, not the earlier $1.9 million figure.
- Assuming carry-forward is automatic. It only applies if your balance was under $500,000 on 30 June of the previous year.
- Triggering bring-forward by accident. Going over $130,000 in one year can start a bring-forward period you did not plan.
If you run an SMSF, contribution caps apply in the same way. Our SMSF property guide covers one of the common SMSF structures, and our financial management and reporting service helps business owners plan contributions alongside cash flow.
FAQ about super contribution caps
What is the concessional contributions cap for 2026-27?
The concessional cap is $32,500 for 2026-27, up from $30,000 in 2024-25 and 2025-26. It covers employer super guarantee contributions, salary sacrifice and personal contributions you claim as a tax deduction. If your total super balance was under $500,000 on 30 June 2026, unused cap amounts from earlier years may lift your limit.
What is the non-concessional cap and bring-forward limit for 2026-27?
The non-concessional cap is $130,000 for 2026-27. If you are under 75 at any time in the year and your total super balance on 30 June 2026 was under $1.84 million, the bring-forward rule can let you contribute up to $390,000 in one year. At $2.1 million or more, your cap is nil.
What happens if I go over the concessional cap?
Excess concessional contributions are added to your assessable income and taxed at your marginal rate, less a 15% tax offset. You can release up to 85% of the excess from your fund to help pay the tax. Any excess you do not release also counts toward your non-concessional cap. The old excess concessional contributions charge stopped from 1 July 2021.
Who pays Division 293 tax?
Division 293 tax applies when your income plus your concessional contributions is more than $250,000. It is an extra 15% on the lesser of the amount over the threshold and your taxable concessional contributions. Income for this test is based on the Medicare levy surcharge definition, including reportable fringe benefits and net investment losses.
Do I need to do anything before claiming a deduction for personal super contributions?
Yes. You must give your super fund a notice of intent to claim a deduction and receive its acknowledgment before you lodge your return or withdraw the money. The deductible amount then counts toward your concessional cap, so check what your employer has already contributed before topping up.
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Nanak Accountants can check your carry-forward amounts, plan deductible contributions before 30 June and make sure your notices of intent are in order. Call 1300 626 258 or visit nanakaccountants.com.au.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO contributions caps, transfer balance cap, concessional and non-concessional cap, Division 293 and super guarantee pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
