2026–27 vs 2025–26 caps at a glance
| Cap | 2026–27 (current) | 2025–26 (prior year) |
|---|---|---|
| Concessional (before-tax) | $32,500 | $30,000 |
| Non-concessional (after-tax) | $130,000 | $120,000 |
| Bring-forward (3 years, under 75) | $390,000 | $360,000 |
| Transfer Balance Cap / TSB threshold | $2.1 million | $1.9M / $2.0M |
Both caps lifted on 1 July 2026 through AWOTE indexation — the first rise since 1 July 2024. If you're topping up your super this financial year, the 2026–27 figures are the ones that apply; the 2025–26 figures matter only for the tax return you're lodging now.
Concessional (Before-Tax) Cap — $32,500 (FY 2026-27)
Concessional contributions are taxed at 15% inside your super fund instead of your marginal rate. The cap is $32,500 for FY 2026-27, up from $30,000 in FY 2025-26 by AWOTE indexation. They include:
- Employer super guarantee (12%)
- Salary sacrifice contributions
- Personal contributions you claim a tax deduction for
Example: On a $100,000 salary, your employer pays $12,000 in super guarantee. That leaves $20,500 of cap space for salary sacrifice or deductible personal contributions under the $32,500 cap.
Non-Concessional (After-Tax) Cap — $130,000 (FY 2026-27)
Non-concessional contributions are made from your after-tax income. They're not taxed going in (you already paid tax on the money). This cap is $130,000 per year for FY 2026-27, up from $120,000 in FY 2025-26 by AWOTE indexation. You can bring forward up to 3 years ($390,000 in FY 2026-27; $360,000 in FY 2025-26) if you're under 75.
Important: The non-concessional cap is only available if your total super balance was under $2.1 million at 30 June 2026 (the FY 2026-27 threshold — it was $2.0 million for FY 2025-26). The bring-forward rule tapers as your balance rises: full 3-year ($390,000) only under $1.84M; 2-year ($260,000) between $1.84M–$1.97M; 1-year ($130,000) between $1.97M–$2.1M; nil at $2.1M+.
Catch-Up Concessional Contributions
If you didn't use your full concessional cap in previous years (from 2018–19 onwards) and your total super balance is under $500,000, you can carry forward the unused amounts for up to 5 years. Unused cap from each year is measured against that year's cap — $27,500 for 2021-22 to 2023-24, $30,000 for 2024-25 and 2025-26, and $32,500 for 2026-27.
This is powerful for people who've had years of part-time work, career breaks, or simply didn't salary sacrifice. You can make a large catch-up contribution in a single year and claim the tax deduction.
What Happens If You Exceed the Cap
| Cap Exceeded | Consequence |
|---|---|
| Concessional ($32,500) | Excess is added to your taxable income and taxed at your marginal rate (minus the 15% already paid). You can choose to withdraw the excess from super to pay the tax. |
| Non-concessional ($130,000) | Excess is taxed at 47%. You can elect to withdraw the excess to avoid this. Take this seriously — 47% is brutal. |
Frequently Asked Questions
What counts toward the $32,500 concessional cap?
Employer super guarantee, salary sacrifice, and any personal contributions you claim a tax deduction for. It's the total from all sources combined, and the cap is $32,500 for 2026-27 (it was $30,000 in 2025-26).
Can I contribute more than $32,500 to super?
Yes, using non-concessional (after-tax) contributions up to $130,000 in 2026-27. Or use catch-up contributions if you have unused concessional cap from previous years and your balance is under $500,000.
What's the bring-forward rule?
If you're under 75, you can bring forward up to 3 years of non-concessional contributions ($390,000 total in 2026-27) in a single year. Your total super balance must be under $1.84 million to use the full 3-year bring-forward.