Super Contribution Caps 2026-27: Concessional and Non-Concessional Limits

Getting money into super is one of the most tax-effective things you can do in Australia. But there are strict limits on how much you can contribute each year, and exceeding them triggers punitive tax consequences. Understanding the caps — and how to maximise your contributions within them — is essential for anyone serious about building their retirement savings.

The Two Types of Contributions

Super contributions fall into two broad categories:

Concessional (before-tax) contributions: These reduce your taxable income and are taxed at 15% within the super fund. They include:

• Employer compulsory SG contributions (12% of your salary)
• Salary sacrifice contributions arranged through your employer
• Personal contributions for which you claim a tax deduction
• Certain other employer contributions

Non-concessional (after-tax) contributions: These come from your after-tax income or savings. They are not taxed again in the fund (since you’ve already paid income tax on the money). They include:

• Personal contributions from your bank account for which you do not claim a tax deduction
• Spouse contributions made on your behalf
• Contributions made by others (family, friends)

Concessional Contributions Cap: $30,000 for 2026-27

The concessional contributions cap for 2026-27 is $30,000 per person, per financial year. This cap has been indexed from the previous $27,500 and reflects the Government’s policy to allow higher concessional contributions over time (source: ATO, July 2026).

The $30,000 cap includes ALL concessional contributions made for you during the year, regardless of who made them or which super fund they went to. The key components:

• Employer SG contributions: For someone on $100,000, this is $12,000 per year (12% SG rate)
• Salary sacrifice contributions: Any amount you arrange through your employer
• Personal deductible contributions: Contributions you make from after-tax money and claim as a deduction

For a person on $100,000, the employer SG is $12,000, leaving $18,000 of concessional cap space available for salary sacrifice or personal deductible contributions.

The Carry-Forward Rule: Use Unused Cap From Previous Years

If your total super balance was below $500,000 at 30 June of the previous financial year, you can access unused concessional cap amounts from up to five previous financial years. This is a powerful tool for catch-up contributions.

How it works:

• The first year you can carry forward unused cap is 2019-20
• Unused amounts are calculated automatically by the ATO (available in myGov)
• You don’t need to apply — the carry-forward is automatic if you’re eligible
• Unused amounts expire after five years (the 2019-20 unused cap expires after 2024-25, etc.)

Example: In 2024-25, your concessional cap was $30,000, but only $12,000 was contributed (employer SG on a $100,000 salary from your old job). You have $18,000 of unused cap. In 2025-26, you only used $15,000 of cap, leaving $15,000 unused. In 2026-27, you sell an investment property and want to contribute extra to super. Your 2026-27 cap is $30,000, plus you can use $18,000 from 2024-25 and $15,000 from 2025-26, for a total of $63,000 in concessional contributions. Note: the carry-forward only applies to concessional contributions, and your total super balance must be below $500,000 at the prior 30 June.

Division 293 Tax: Extra 15% for High-Income Earners

If your combined income and concessional contributions exceed $250,000, you pay an additional 15% tax on the lower of: (a) the amount above $250,000, or (b) your total concessional contributions. This is Division 293 tax, effectively making the tax on concessional contributions 30% instead of 15% for high-income earners.

The ATO calculates Division 293 tax and issues a separate assessment. You can pay it personally or elect to have it deducted from your super account.

Non-Concessional Contributions Cap: $120,000 for 2026-27

The non-concessional (after-tax) cap for 2026-27 is $120,000. This is four times the concessional cap and is indexed in line with it.

You can only make non-concessional contributions if your total super balance at 30 June of the previous year is below the total super balance cap ($1.9 million for 2026-27). If your balance is above $1.9 million, you cannot make non-concessional contributions at all (any made are excess contributions).

The Bring-Forward Rule

If you’re under age 75, you may be able to use the bring-forward rule, which lets you contribute up to three years’ worth of non-concessional cap in one year: $360,000 for 2026-27.

Eligibility depends on your total super balance at 30 June of the previous year:

• Below $1.66 million: Full bring-forward available (3 years, $360,000)
• $1.66 million to $1.78 million: 2-year bring-forward available ($240,000)
• $1.78 million to $1.9 million: No bring-forward, only the standard $120,000 cap
• Above $1.9 million: No non-concessional contributions at all

The bring-forward is triggered automatically the first year you make non-concessional contributions above the standard annual cap. Once triggered, you’re locked in for the two or three-year period.

Example: You’re 55, your TSB is $900,000, and you come into an inheritance of $400,000. You can contribute $360,000 this year as a non-concessional contribution using the bring-forward rule. For the next two years, you cannot make any further non-concessional contributions (you’ve used your three-year allocation). But concessional contributions continue as normal.

Excess Contributions: What Happens If You Exceed the Caps

Excess Concessional Contributions

If you exceed the $30,000 concessional cap:

• The excess amount is included in your assessable income
• It’s taxed at your marginal rate plus Medicare levy
• You receive a 15% tax offset (to account for the contributions tax already paid in the fund)
• The ATO will notify you and give you the option to release up to 85% of the excess from super to help pay the tax

For example, if you’re on the 39% marginal rate and exceed the cap by $5,000, that $5,000 is added to your income, taxed at 39% plus 2% Medicare ($2,050), minus a 15% offset ($750), leaving an additional tax bill of $1,300. You can withdraw 85% of the $5,000 ($4,250) from super to pay this. The remaining $750 stays in super and has already been taxed at 15%.

Excess Non-Concessional Contributions

Excess non-concessional contributions are more severely penalised. If you exceed the cap:

• The ATO will issue an excess contributions determination
• You have the option to withdraw the excess plus associated earnings
• The associated earnings are taxed at your marginal rate
• If you don’t withdraw, the excess is taxed at 47% within the fund

It’s always better to withdraw excess non-concessional contributions. Contact your super fund and the ATO as soon as you’re aware of the excess.

Age Restrictions on Contributions

Under 67

No restrictions. You can make both concessional and non-concessional contributions without meeting any work test.

Age 67 to 74

You must meet the “work test” to make voluntary contributions: at least 40 hours of gainful employment in a consecutive 30-day period during the financial year in which the contribution is made. Alternatively, you can use the “work test exemption” if you met the work test in the previous financial year, your total super balance is below $300,000, and you haven’t previously used the exemption.

Employer SG contributions must be made regardless of your age or work status, as long as you’re employed.

Age 75 and Above

You generally cannot make voluntary contributions after age 75, even if you meet the work test. The exceptions are:

• Employer SG contributions (mandatory, no age limit)
• Downsizer contributions (from the sale of your home, see below)

Downsizer Contributions

If you’re 55 or older and sell your home (which you’ve owned for at least 10 years), you can contribute up to $300,000 per person ($600,000 per couple) to super from the sale proceeds. This is outside both the concessional and non-concessional caps and can be made even if your total super balance is above $1.9 million. There is no upper age limit for downsizer contributions.

The Total Super Balance Cap: $1.9 Million

The total super balance (TSB) cap for 2026-27 is $1.9 million. This is not a hard limit on how much you can have in super (your balance can grow above this through investment earnings), but it restricts further contributions and certain strategies:

• If your TSB at 30 June is above $1.9 million, you cannot make non-concessional contributions
• The amount you can transfer into a retirement-phase pension (the “transfer balance cap”) is $1.9 million
• TSB determines carry-forward eligibility (must be below $500,000)
• TSB determines bring-forward eligibility for non-concessional contributions

Spouse Contributions and Tax Offset

If you contribute to your spouse’s super (they must be under 75 and meet the work test if 67-74), you may be eligible for a tax offset of up to $540. The offset is 18% of the contribution, up to $3,000 contributed, and phases out as your spouse’s income rises. For 2026-27:

• Full offset: spouse income $40,000 or less
• Partial offset: spouse income $40,001 to $43,000
• No offset: spouse income above $43,000

The contribution counts toward your spouse’s non-concessional cap, not yours.

Use the Super Growth Calculator to see how different contribution strategies affect your retirement balance. Visit /calculators/super-growth/ and model your contributions over time.

Frequently Asked Questions

What are the super contribution caps for 2026-27?

The concessional (before-tax) contributions cap is $30,000 per person, including employer SG, salary sacrifice, and personal deductible contributions. The non-concessional (after-tax) cap is $120,000 per year, or $360,000 under the bring-forward rule if you’re under 75 and your TSB is below $1.66 million. The total super balance cap is $1.9 million.

What happens if I exceed the contribution caps?

Excess concessional contributions are added to your assessable income and taxed at your marginal rate (minus a 15% offset). You can release 85% of the excess to pay the tax. Excess non-concessional contributions are taxed at 47% unless withdrawn. The ATO sends an excess determination with your options.

How does the carry-forward rule work for unused concessional cap?

If your total super balance was below $500,000 at 30 June of the previous year, you can carry forward unused concessional cap from up to five prior years. The ATO tracks this automatically. Unused amounts expire after five years. This allows catch-up contributions in years with extra cash flow.

Are there age restrictions on making super contributions?

From age 67 to 74, you must meet the work test (40 hours in a 30-day period) for voluntary contributions, or use the work test exemption (if TSB below $300,000 and prior-year work test met). After 75, only employer SG and downsizer contributions are allowed. Employer SG has no age limit.

Disclaimer: This article provides general estimates only and does not constitute financial, tax, or legal advice. Rates, thresholds, and rules change. Always refer to the ATO, your state revenue office, or a licensed professional for your specific circumstances. Last updated: July 2026.