For the 2026-27 financial year, the concessional contributions cap is $32,500 and the non-concessional contributions cap is $130,000, both up from $30,000 and $120,000 in 2025-26. Here is exactly how each cap works, who they apply to, and how to use carry-forward and bring-forward rules to contribute more.
The short version
For the 2026-27 financial year, the concessional contributions cap is $32,500 and the non-concessional contributions cap is $130,000, both up from $30,000 and $120,000 in 2025-26. Here is exactly how each cap works, who they apply to, and how to use carry-forward and bring-forward rules to contribute more.
In this guide
- Key Takeaways
- What Is the Concessional Contributions Cap for 2026-27?
- What Is the Non-Concessional Contributions Cap for 2026-27?
- Age and Work Test Rules
- Catch-Up Concessional Contributions: Boosting Your Cap Beyond $32,500
- Division 293 Tax: Extra Tax for High Income Earners
- Worked Example
- What Happens If You Exceed a Cap?
Key Takeaways
- The 2026-27 concessional (before-tax) cap is $32,500; the non-concessional (after-tax) cap is $130,000.
- Non-concessional eligibility depends on your total super balance (TSB) at 30 June 2026 — nil if it’s $2.1 million or more.
- Under-500k TSB? You could carry forward unused concessional cap from the past five years, up to $175,000 total for 2026-27.
- 2026-27 is the last year to use any unused 2021-22 concessional cap — it expires after this financial year.
- High earners may face an extra 15% Division 293 tax on concessional contributions.
What Is the Concessional Contributions Cap for 2026-27?
The concessional contributions cap for 2026-27 is $32,500. This is the maximum amount of before-tax contributions you can add to super in one financial year without triggering additional tax. The cap is indexed to wages growth in $2,500 increments, which is why it has risen from $30,000.
What Counts as a Concessional Contribution?
- Employer Superannuation Guarantee (SG) contributions
- Salary sacrifice arrangements with your employer
- Personal contributions you claim as a tax deduction
For 2026-27, the Superannuation Guarantee rate stays at 12%, applied up to a maximum contribution base of $270,830 in earnings, which caps the maximum employer SG contribution at $32,499.60 for the year.
What Is the Non-Concessional Contributions Cap for 2026-27?
The non-concessional contributions cap for 2026-27 is $130,000. These are after-tax contributions, including personal contributions from take-home pay, spouse contributions, and eligible foreign super transfers. Your eligibility to contribute at all depends on your total superannuation balance (TSB) as at 30 June 2026.
| Total Super Balance (30 June 2026) | Non-Concessional Cap Available |
|---|---|
| Below $1.84 million | Up to $390,000 (3-year bring-forward) |
| $1.84m to under $1.97 million | Up to $260,000 (2-year bring-forward) |
| $1.97m to under $2.1 million | $130,000 (standard annual cap only) |
| $2.1 million or more | $0 (not eligible to contribute) |
To trigger the bring-forward rule you also need to be 74 or younger on 1 July of the year you trigger it. If you’re eligible for both the bring-forward rule and a home sale, see how it can be combined with a downsizer contribution for an even larger one-off contribution.
Age and Work Test Rules
- Under 67: no work test applies to any contribution type.
- 67 to 74: you generally need to meet the work test (40 hours in 30 consecutive days) to make personal or salary-sacrificed contributions, unless the work test exemption applies.
- 75 and over: only employer SG contributions and downsizer contributions can be accepted; personal and salary-sacrificed contributions can no longer be made.
Catch-Up Concessional Contributions: Boosting Your Cap Beyond $32,500
If your total super balance was below $500,000 on 30 June 2026, you can carry forward unused concessional cap amounts from the previous five financial years.
Combined with the 2026-27 cap of $32,500, this can lift your total available concessional contributions to as much as $175,000 in a single year, useful if you have had a high-income year, an inheritance, or proceeds from selling an asset. Note that 2026-27 is the last year you can use any unused cap from 2021-22 — unused amounts from 2020-21 already expired at the end of 2025-26.
Division 293 Tax: Extra Tax for High Income Earners
If your income plus relevant concessional contributions exceeds $250,000 in a financial year, an additional 15% Division 293 tax applies on top of the standard 15% contributions tax — taking the effective tax rate on those contributions to 30%. The extra tax is assessed on the lesser of your excess income above $250,000 or your total concessional contributions for the year, and the ATO issues a separate notice for it after you lodge your tax return.
Worked Example
David, 48, earns $150,000 and receives $16,650 in employer SG contributions this year (12% of $138,750 in ordinary time earnings). That leaves $15,850 of his $32,500 concessional cap unused. He arranges an extra $15,850 in salary sacrifice before 30 June, using his full cap without exceeding it and reducing his taxable income accordingly.
What Happens If You Exceed a Cap?
Exceeding the concessional cap means the excess is added to your assessable income and taxed at your marginal rate, less a 15% offset for tax already paid in the fund.
Exceeding the non-concessional cap without eligibility can result in the excess being taxed at the top marginal rate. Both situations are avoidable with proper planning before you contribute, not after.
If you are weighing up salary sacrifice against other contribution types, our salary sacrifice vs extra contributions guide breaks down which saves more tax. If you are close to selling your home, see how the downsizer contribution sits outside these caps entirely.
These caps interact with your Age Pension planning too. If you’re weighing up how additional super affects your Age Pension assets test position, it’s worth modelling both together before contributing.
Ready to find out where you stand?
Book a free, no-obligation appointment with Nasser Zreika to see how this applies to your situation.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Before making any financial decisions, you should consider whether the information is appropriate to your circumstances and seek personal financial advice. Nasser Zreika and Lincoln Wealth Advisers are Authorised Representatives of Synchron, AFS Licence No. 243313.