Superannuation contribution caps to increase from 1 July 2026
The annual superannuation contribution caps will increase from 1 July 2026.
The concessional contribution (CC) cap will increase from $30,000 to $32,500, while the non-concessional contribution (NCC) cap will rise from $120,000 to $130,000.
When assessing contribution opportunities, it is important to note that some individuals may be eligible for higher contribution limits under the carry-forward concessional contribution rules or the non-concessional contribution bring-forward provisions.
Conversely, individuals with higher superannuation balances may have a reduced or nil NCC cap available. Eligibility will generally depend on your total superannuation balance (TSB) as at the previous 30 June.
Concessional contributions
Concessional contributions are contributions made from pre-tax income and can include compulsory superannuation guarantee (SG) contributions, voluntary salary sacrifice arrangements, and personal deductible contributions.
Where your SG contributions are below the annual cap, additional salary sacrifice or personal deductible contributions may provide an opportunity to reduce your taxable income and overall tax liability.
In addition, individuals with a TSB below $500,000 at the previous 30 June may be eligible to utilise unused concessional contribution cap amounts carried forward from the prior five financial years. This can provide a valuable opportunity to make larger tax-effective contributions to superannuation.
Non-concessional contributions
Non-concessional contributions are made from after-tax income. While these contributions generally do not provide an immediate tax deduction, superannuation remains a highly tax-effective investment structure for many individuals.
Earnings generated within the superannuation accumulation phase are generally taxed at a maximum rate of 15%, which is often significantly lower than an individual’s marginal tax rate. Furthermore, investment earnings and pension withdrawals may become tax-free in retirement, subject to the transfer balance cap, which will increase to $2.1 million from 1 July 2026.
Eligible individuals may also be able to utilise the bring-forward provisions, allowing up to two additional years of NCC caps to be brought forward and contributed at once. From 1 July 2026, this may allow contributions of up to $390,000 in a single financial year.
However, these rules can be complex and require consideration of factors such as:
- your total superannuation balance (TSB), and
- any non-concessional contributions already made during the current and previous two financial years.
There may also be contribution opportunities available this financial year for individuals whose TSB was below $2 million as of 30 June 2025.
If you would like to understand how superannuation contribution strategies may help reduce your current or future tax liabilities, please speak with your tax adviser at Bates Cosgrave.