From 1 July 2026, the concessional contribution cap rose from $30,000 to $32,500, and the non-concessional cap rose from $120,000 to $130,000.
That extra space could be useful, particularly if you’ve had a bonus, sold an asset or are getting closer to retirement. However a higher limit is a ceiling, not a target. How much (if anything) it makes sense to add to your super depends on your eligibility, cash flow and what goals you’re working towards.
What are the super contribution caps for 2026/27?
| Contribution type | 2025/26 | 2026/27 |
|---|---|---|
| Concessional contributions | $30,000 | $32,500 |
| Non-concessional contributions | $120,000 | $130,000 |
| Three-year bring-forward maximum* | $360,000 | $390,000 |
*Subject to eligibility, including age and total super balance rules.
What are concessional contributions?
Concessional contributions are contributions to your super that generally receive concessional tax treatment. They include:
- Employer super guarantee payments (the compulsory super contributions your employer makes).
- Salary sacrifice, where you ask your employer to pay part of your pre-tax salary into super.
- Personal contributions, which you then claim a tax-deduction for.
Here’s the bit that catches people out: your employer’s contributions count towards the same $32,500 cap. So, if your employer already pays $15,000 a year into your super, your remaining room is $17,500, assuming there are no other concessional contributions.
You can learn more about the super caps here.
What does the higher concessional cap mean?
For many people, it creates an additional $2,500 each year for concessional contributions, which are generally taxed at 15% when they enter super which may be lower than your marginal tax rate. If your combined income and concessional contributions are more than $250,000, an additional 15% (under the Division 293 tax) may also apply to some or all of those contributions.
Of course, more in super usually means less in your spending account today. Before increasing your contributions, it’s worth weighing up your household budget, your mortgage or other debts, and what you may need the money for in the shorter term.
Can you contribute more than $32,500 using unused caps?
Possibly. The carry-forward rule lets you use unused concessional cap amounts from the previous five financial years, as long as your total super balance was below $500,000 at 30 June of the previous year.
This could be worth a look if you’ve had a career break, time on parental leave or years when your contributions were lower. You can check your available carry-forward amounts through myGov.
What should you check before increasing your contributions?
A few quick questions can help you avoid surprises:
- How much has already been contributed this financial year, including employer payments?
- Do you have unused concessional cap amounts you could use?
- What was your total super balance at 30 June 2026?
- What else could you need this money for?
- Are there tax implications or other financial priorities to consider?
Going over a cap can mean extra tax and some back-and-forth with the ATO, so a quick tally before you contribute can save a headache later.
Should you increase your super contributions because the caps went up?
Not necessarily. Super can be a tax-effective way to save for retirement, but the money is generally locked away until you meet a condition of release, such as reaching your preservation age and retiring, or turning 65.
For some people, paying down a home loan, building an accessible cash buffer or investing outside super might better suit their current situation. For others, a mix of all three could make sense. The right balance depends on your age, income, goals and how soon you might need the money.
Thinking about adding more to your super this financial year?
The higher caps may open up some new opportunities, but the amount that makes sense for you depends on your broader financial position and retirement plans. Our team can help you understand your contribution options and how they fit into your overall strategy.
Book an appointment or learn more about our Superannuation and Retirement Planning services.
FAQs
What is the concessional contribution cap for 2026/27?
The general concessional (before-tax) cap is $32,500, up from $30,000 in 2025/26. Some people may be able to contribute more using unused amounts from previous years.
What is the non-concessional contribution cap for 2026/27?
The general non-concessional (after-tax) cap is $130,000, up from $120,000. Eligibility depends on your total super balance.
Does employer super count towards the $32,500 cap?
Yes. Your employer’s Super Guarantee payments count towards the cap, along with any salary sacrifice and personal contributions you claim a tax-deduction for.
How much can I salary sacrifice into super in 2026/27?
It depends on how much your employer already contributes. Your salary sacrifice, employer payments and any deductible personal contributions together generally need to stay within $32,500, unless you’re eligible to use unused caps from previous years.
Can I contribute $390,000 to super in one year?
Some people can, using the bring-forward rule. To be eligible for the full $390,000, you’ll generally need to be under 75, have a total super balance below $1.84 million at 30 June 2026, and not already be in a bring-forward period.
What happens if I contribute too much to super?
Excess concessional contributions are generally added to your taxable income and taxed at your marginal tax rate, with a 15% tax offset.
If you exceed your non-concessional contributions cap, the ATO will generally issue a determination explaining your options. You can usually choose to have the excess contributions and associated earnings released from super. Additional tax may apply if you leave the excess contributions in your fund.
General advice disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
