Superannuation Contribution Caps 2026-27: The New Limits and How to Use Them
The concessional super cap rises to $32,500 from 1 July 2026. Full guide to all caps: concessional, non-concessional, bring-forward, carry-forward and the $2.1M transfer balance cap.
Three superannuation contribution caps change from 1 July 2026, and understanding them matters whether you're catching up on retirement savings, deciding how much to salary sacrifice, or planning a large lump-sum contribution before the end of the financial year.
Here are the 2026-27 caps, how each works, and the strategies worth considering.
All caps at a glance: 2025-26 vs 2026-27
| Cap type | 2025-26 | 2026-27 | Change |
|---|---|---|---|
| Concessional (pre-tax) | $30,000 | $32,500 | +$2,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 | +$10,000 |
| Bring-forward (3-year NCC) | $360,000 | $390,000 | +$30,000 |
| Transfer balance cap | $2.0M | $2.1M (indexed) | +$100,000 |
| Division 293 threshold | $250,000 | $250,000 | Unchanged |
| Carry-forward TSB threshold | $500,000 | $500,000 | Unchanged |
Use our Superannuation Calculator to project your super balance at retirement with different contribution levels.
Concessional contributions cap: $32,500
Concessional contributions are pre-tax super contributions taxed at 15% inside the fund. They include:
- Employer SGC (12% of ordinary time earnings from 1 July 2025)
- Salary sacrifice additional contributions
- Personal deductible contributions (self-employed or personal contributions where you lodge a Notice of Intent to claim a deduction)
The cap covers all three combined. If your employer already contributes $14,000 in SGC on your $117,000 salary, you have $18,500 of cap remaining for additional salary sacrifice or personal contributions.
What exceeding the cap costs you: Excess concessional contributions are added to your assessable income and taxed at your marginal rate, with a 15% offset for the contributions tax already paid by the fund. If you're in the 37% bracket, the effective additional tax on excess contributions is 22% (37% minus the 15% offset).
Division 293 for high earners: If your income plus concessional contributions exceeds $250,000, an additional 15% Division 293 tax applies to the concessional contributions that cause the excess. This brings the effective super tax to 30% on those contributions — still below the 47% top marginal rate, but less advantageous.
Non-concessional contributions cap: $130,000
Non-concessional contributions (NCCs) are after-tax amounts you put into super from your personal savings — money on which you've already paid income tax. They attract no contributions tax inside the fund.
Who uses NCCs:
- People with lump sums to invest (inheritance, property sale, bonus) who want to get them into the tax-advantaged super environment
- Those approaching retirement who want to maximise the pension phase tax-free bucket
- Investors who have already maxed their concessional cap and have more to contribute
Important restriction: You cannot make NCCs if your total super balance (TSB) on the prior 30 June was $1.9 million or more. Above this threshold, the NCC cap is nil.
For TSBs between $1.68M and $1.9M, a reduced bring-forward amount may apply — check with a financial adviser or the ATO.
Bring-forward rule: $390,000 over 3 years
The bring-forward rule lets you contribute up to three years of NCCs in a single financial year, rather than spreading them over three separate years.
2026-27 bring-forward:
- Maximum: $390,000 in one year (3 × $130,000)
- Alternative: $260,000 over 2 years, or $130,000 in the current year only
To use the full $390,000 bring-forward, you must:
- Be under 75 years of age at the time of contribution
- Have a TSB below $1.68 million on 30 June 2026 (one threshold below the cap-out level)
- Not have triggered a bring-forward arrangement in either of the two prior financial years
| TSB on 30 June 2026 | Maximum contribution (bring-forward) |
|---|---|
| Under $1.68M | $390,000 (3-year bring-forward) |
| $1.68M – $1.79M | $260,000 (2-year) |
| $1.79M – $1.9M | $130,000 (current year only) |
| $1.9M or above | Nil — NCC cap is zero |
Worked example: Naomi sells an investment property in October 2026 and receives a $350,000 net gain. She wants to shelter as much as possible in super. Her TSB on 30 June 2026 was $1.4M. She can use the 3-year bring-forward to contribute $350,000 in NCCs in 2026-27, using up $350,000 of the $390,000 available. She has $40,000 of bring-forward remaining for the following two years.
Carry-forward concessional contributions
If you haven't used your full concessional cap in previous years, you may be able to make larger concessional contributions in a future year by carrying forward unused amounts.
Rules:
- Unused cap space from 2019-20 onward can be carried forward (up to 5 years back)
- Oldest unused amounts are used first
- Your TSB must be under $500,000 on 30 June of the prior year to use carry-forward
Example carry-forward calculation:
| Year | Cap | Used | Unused |
|---|---|---|---|
| 2021-22 | $27,500 | $15,000 | $12,500 |
| 2022-23 | $27,500 | $15,000 | $12,500 |
| 2023-24 | $27,500 | $15,000 | $12,500 |
| 2024-25 | $30,000 | $15,000 | $15,000 |
| 2025-26 | $30,000 | $15,000 | $15,000 |
| Total carry-forward available | $67,500 |
If this person's TSB was under $500,000 on 30 June 2026, they could contribute up to $67,500 + $32,500 (current year cap) = $100,000 in concessional contributions in 2026-27.
This is powerful for people who had low incomes earlier in their career, took time off, or are now in a high-income year and want to reduce taxable income significantly.
Transfer balance cap: $2.1 million
The transfer balance cap (TBC) is the limit on how much you can transfer from accumulation phase (where earnings are taxed at 15%) into retirement phase (where earnings are tax-free).
From 1 July 2026, the TBC is indexed to $2.1 million.
Important nuances:
- The TBC is a lifetime limit on total transfers, not a balance cap
- If you have already started a pension, your personal TBC is based on when you first started the pension and may be lower than $2.1M (due to proportional indexation rules)
- Amounts above the TBC must remain in accumulation phase (taxed at 15%) or be withdrawn
- Exceeding the TBC triggers excess transfer balance tax — currently the 90-day SIC rate
The TBC is separate from the NCC restrictions (which are based on TSB) and from the $3M Division 296 threshold (a separate measure).
Which cap matters most to you?
| Your situation | Cap most relevant |
|---|---|
| Employed, want to salary sacrifice | Concessional cap ($32,500) |
| Self-employed, want to claim deduction | Concessional cap ($32,500) |
| Have lump sum cash to invest | NCC cap ($130,000) or bring-forward ($390,000) |
| Had low income in prior years | Carry-forward concessional |
| Planning retirement drawdown | Transfer balance cap ($2.1M) |
| Earning $250k+, salary sacrificing | Division 293 threshold ($250k) |
Frequently asked questions
What is the concessional super cap for 2026-27?
The concessional contributions cap for FY 2026-27 is $32,500 per person. This covers all pre-tax contributions combined: employer SGC (12%), salary sacrifice, and personal deductible contributions. It increased from $30,000 in 2025-26.
What is the non-concessional contributions cap for 2026-27?
The non-concessional contributions (NCC) cap for 2026-27 is $130,000 per person. This applies to after-tax money you put into super. If your total super balance (TSB) on 30 June 2026 was $1.9 million or more, your NCC cap is nil.
What is the bring-forward rule for super in 2026-27?
The bring-forward rule lets you contribute up to three years of NCCs in a single financial year. For 2026-27, the maximum bring-forward amount is $390,000 (if your TSB on 30 June 2026 was under $1.68 million). This is useful for investing large lump sums — from property sales, inheritances, or bonuses — into super in a single year.
What is the transfer balance cap in 2026-27?
The transfer balance cap (TBC) for 2026-27 is $2.1 million after indexation. This is the lifetime limit on how much you can transfer from accumulation phase into retirement phase (where earnings are tax-free). Your personal TBC may be lower if you started a pension before the indexation date.
Can I use carry-forward concessional contributions if my super balance is over $500,000?
No. Carry-forward concessional contributions are only available if your total super balance (TSB) was under $500,000 on 30 June of the prior financial year. If your TSB exceeds $500,000, you can still contribute up to the standard $32,500 concessional cap — you just can't add unused cap space from prior years.
What is Division 293 tax?
Division 293 is an additional 15% tax on concessional super contributions for high-income earners. It applies when your taxable income plus concessional contributions exceeds $250,000. The threshold is unchanged at $250,000 for 2026-27, meaning the increased $32,500 concessional cap may push some earners over $250,000 who weren't previously affected.
Super contribution caps are set by the Australian Taxation Office and may change in future years. The figures in this article are current for FY 2026-27 (1 July 2026 – 30 June 2027). This article is for general information only and does not constitute financial advice.
Written by
Mahi PatilSoftware engineer & personal finance enthusiast · Melbourne, Australia
Built Dolaro.com.au to create accurate, free Australian finance tools. Invests in Australian and global ETFs and writes about the topics researched firsthand. More about Mahi →