Super Contributions Australia: Concessional and Non-Concessional Caps (2025-26 and 2026-27)

Superannuation contributions are one of the most effective ways to build retirement savings while also managing tax, but the rules can be easy to get wrong. For 2025-26, the concessional contributions cap is $30,000. This applies to contributions that are generally taxed at 15% in the super fund, including employer Super Guarantee contributions, salary sacrifice amounts and personal deductible contributions. The non-concessional contributions cap is $120,000 for 2025-26, which applies to after-tax contributions for which no tax deduction is claimed. These caps are expected to remain aligned into 2026-27 unless the ATO announces changes, so it is important to check the current year’s limits before making any large contribution.

Concessional contributions are often the first place people look for tax savings, but it is important to remember that the cap includes all concessional amounts received by your fund across the financial year, not just what you personally pay in. If your employer pays Super Guarantee on your behalf, that counts towards the cap, even if it is paid late. From 1 July 2026, the Payday Super changes will require employers to pay Super Guarantee at the same time as salary and wages, rather than quarterly, which should make contributions more timely and may help reduce surprises at year end. Even so, people should still monitor their year-to-date concessional contributions, especially if they have multiple employers, bonus payments, commission arrangements or are making their own deductible contributions.

If your total concessional contributions are below the cap and your total super balance was under $500,000 at 30 June of the previous financial year, you may be able to use the carry-forward rule. This lets you take advantage of unused concessional cap amounts from up to five prior years, on a rolling basis. The unused amounts are added to your current year cap, which can be very useful if you have a one-off capital gain, receive a bonus, or want to make a large deductible contribution after a period of lower contributions. The ATO tracks unused cap amounts through your super fund reporting, but you should not assume you have spare cap space without checking your account or records, because employer contributions, salary sacrifice and personal deductible contributions all count together.

Non-concessional contributions are usually made from money that has already been taxed, such as savings, an inheritance, or proceeds from the sale of an asset after tax. The standard non-concessional cap for 2025-26 is $120,000. A useful feature of the rules is the bring-forward arrangement, which may let eligible individuals contribute up to three years’ worth of the non-concessional cap in a single year. In practical terms, that can mean contributing up to $360,000 in 2025-26, depending on your total super balance and whether you have triggered the bring-forward arrangement before. The amount you can contribute and whether you can access the full three years depends on your personal circumstances, especially your total super balance at 30 June of the previous year, so this is an area where advice is often worthwhile before transferring a large sum into super.

If you want to claim a tax deduction for personal super contributions, the process needs to be handled correctly. You must make the contribution personally, lodge a valid notice of intent to claim a deduction with your super fund, and receive an acknowledgement from the fund before you lodge your tax return or before the end of the following income year, whichever comes first. The contribution then becomes a concessional contribution and is taxed in the fund at 15%, or more for some high-income earners because of Division 293 tax. This can be a very effective strategy for sole traders, contractors and employees with spare cap space, but it is not automatic and it is easy to lose the deduction if the notice is late or incomplete.

The key to using super contributions well is timing, record keeping and checking the rules before you act. The contribution caps apply to the date the fund receives the money, not the date you transfer it, so leaving a contribution until late June can be risky. You also need to consider how employer contributions, salary sacrifice, personal deductible contributions, carry-forward amounts and the bring-forward arrangement interact, because one decision can affect the rest of your contribution strategy for several years. If you would like help working out your available cap space or planning a tax-effective super contribution strategy for 2025-26 or 2026-27, contact SolAeon Tax for tailored advice.