From 1 July 2026, superannuation contributions caps will increase.
- The annual concessional contribution (CC) cap will increase from $30,000 to $32,500
- The annual non-concessional contribution (NCC) cap will increase from $120,000 to $130,000
Concessional contributions
Concessional contributions are pre-tax contributions and can include compulsory superannuation guarantee (SG), voluntary salary sacrifice contributions and personal deductible contributions.
If your SG contributions are below your cap, you may be able to reduce your annual tax bill by making either salary sacrifice or personal deductible contributions. You may also have access to any unused concessional cap from the prior 5 years if your Total Super Balance (TSB) was below $500,000 on 30 June the year prior.
Non-concessional contributions
Non-concessional contributions are post-tax contributions. Although there typically isn’t an immediate tax saving on NCCs the superannuation accumulation (pre-retirement) tax rate of 15% is typically lower than many people’s marginal tax rate and the tax rate on superannuation earnings and drawdowns may be tax-free in retirement (subject to a pension transfer balance cap of $2,100,000 from 1 July 2026).
It can also be possible to bring forward 2 years of your NCC contribution cap and contribute 3 years at one time ($390,000 from 1 July 2026). However, the rules are complex and your TSB and any prior NCC contributions in the current and prior two financial years need to be considered.
Seek personalised advice
When considering contribution opportunities some individuals may have higher caps due to the carry forward CC rules or the NCC bring forward rules, while others with higher super balances may have a reduced or nil NCC cap. This will depend on your total superannuation balance (TSB) at the prior 30 June.
If you would like to understand how superannuation contributions may reduce your current and future tax bill, please contact pur team for a conversation.
Seek personal advice
Your personal situation will impact the actions you take when it comes to super. It is important to review your position before making additional contributions.
Contact us if you would like clarity.