The superannuation contribution caps went up on 1 July 2026 for the first time in two years. This guide sets out the super contribution caps for 2026-27, the bring-forward and carry-forward rules that let you contribute more, and the traps that lead to excess contributions tax. The figures apply to all super funds, including SMSFs.
2026-27 caps at a glance
| Cap | 2026-27 | 2025-26 |
|---|---|---|
| Concessional (before-tax) contributions | $32,500 | $30,000 |
| Non-concessional (after-tax) contributions | $130,000 | $120,000 |
| Non-concessional bring-forward (3 years) | Up to $390,000 | Up to $360,000 |
| General transfer balance cap | $2.1 million | $2.0 million |
| CGT cap (small business retirement contributions) | $1,935,000 | $1,865,000 |
| Super guarantee rate | 12% | 12% |
Concessional contributions: $32,500
Concessional contributions are taxed at 15% inside the fund and include employer super guarantee, salary sacrifice and personal contributions you claim a tax deduction for. The cap counts all of these together, so an employee on a high salary can reach $32,500 through super guarantee alone. High income earners with combined income and contributions above $250,000 pay an extra 15% on some or all of their concessional contributions under Division 293.
Carry-forward rule: if your total super balance was under $500,000 on 30 June of the previous year, you can use any unused concessional cap from the previous five financial years on top of this year’s cap. Unused amounts expire after five years. This is one of the most useful and least used rules for business owners with uneven income.
To claim a deduction for a personal contribution you must give your fund a notice of intent and have it acknowledged before you lodge your tax return or start a pension with the money. Members aged 67 to 74 must also meet the work test (40 hours in 30 consecutive days) to claim the deduction.
Non-concessional contributions: $130,000
Non-concessional contributions come from after-tax money and are not taxed on the way into the fund. You can make them up to age 75 without a work test. The cap depends on your total super balance (TSB) at the previous 30 June:
| Total super balance at 30 June 2026 | Non-concessional cap in 2026-27 |
|---|---|
| Under $1.84 million | $390,000 over 3 years (bring-forward) |
| $1.84 million to under $1.97 million | $260,000 over 2 years |
| $1.97 million to under $2.1 million | $130,000 (no bring-forward) |
| $2.1 million or more | Nil |
The bring-forward is triggered automatically when you contribute more than the annual cap in a year, and it locks in the caps that applied in the year it was triggered. If you triggered the bring-forward in 2025-26, your three-year total stays at $360,000 even though the cap has since increased.
Transfer balance cap: $2.1 million
The transfer balance cap limits how much super can be moved into tax-free retirement phase pensions. Anyone starting their first pension on or after 1 July 2026 has a personal cap of $2.1 million. People who already had a pension before that date have a personal cap somewhere between $1.6 million and $2.1 million, depending on how much of their cap they have used. The ATO tracks this through transfer balance account reporting, which SMSFs must lodge quarterly.
Other contributions that sit outside the caps
- Downsizer contributions: up to $300,000 per person from the sale of a home owned for at least 10 years, available from age 55, and not counted against the non-concessional cap
- Small business CGT contributions: proceeds from selling business assets under the small business CGT concessions can be contributed up to the lifetime CGT cap of $1,935,000
- Personal injury settlements: structured settlement contributions are excluded from the caps if the paperwork is lodged in time
What happens if you exceed a cap
Excess concessional contributions are added to your taxable income and taxed at your marginal rate, with a 15% offset for the tax the fund already paid, plus an interest charge. Excess non-concessional contributions can be withdrawn along with 85% of the associated earnings, which are then taxed at your marginal rate. If you leave the excess in the fund it is taxed at the top marginal rate. The ATO calculates all of this from your fund’s reporting, which is why contributions must be reported accurately in the SMSF annual return.
Frequently asked questions
When does a contribution count?
When the fund receives it, not when you send it. A contribution made by bank transfer on 30 June that lands on 1 July counts in the new financial year. For SMSFs, the ATO looks at when the money reached the fund’s bank account.
Do the caps apply per fund or per person?
Per person. Contributions to all of your funds are added together.
Can my spouse contribute for me?
Yes. Spouse contributions count against the receiving spouse’s non-concessional cap, and the contributing spouse may be eligible for a tax offset of up to $540 if the receiving spouse’s income is low.
Contribution planning for SMSF members
Kennedy Tax & Business Services tracks contributions against the caps as part of our SMSF accounting service and prepares the SMSF annual return that reports them to the ATO. Contact our Footscray or Williams Landing office before 30 June if you are planning a large contribution.
This article is general information only and does not take into account your personal circumstances. Figures are from ATO published rates and thresholds for 2026-27. Speak to a registered tax agent or licensed financial adviser before acting.
