Last Updated: October 8, 2026
Superannuation Contribution Caps: A Side-by-Side Summary
What are the superannuation contribution caps? The Australian Taxation Office (ATO) sets these limits, and they apply to every contribution made during the 2026–27 financial year. This guide from Veyron Wealth Group sets out each cap, the eligibility conditions attached to them, and the practical steps for staying inside them.
The caps are indexed, which means they move when average weekly ordinary time earnings (AWOTE) move. That single mechanism explains almost every change.
The 2026–27 Caps at a Glance
| Cap or Threshold | 2026–27 Amount | Who It Applies To |
| Concessional contributions cap | $32,500 | All individuals, per financial year |
| Non-concessional contributions cap | $130,000 | Individuals with a total super balance under the general transfer balance cap ($2.1M) |
| Bring-forward (three years) | Up to $390,000 | Eligible individuals under age 75 with TSB below $1.84M |
| Carry-forward unused concessional amounts | Varies by contribution history | Individuals with a total super balance under $500,000 |
| Downsizer contribution | Up to $300,000 per person | Eligible home sellers aged 55+ (does not count toward non-concessional caps) |
Why the Caps Changed
Indexation lifted caps in line with AWOTE, so anyone planning a contribution strategy around last year’s figures needs to update their numbers. The bring-forward thresholds shift directly with the non-concessional cap. The ATO publishes confirmed figures each year through official key superannuation rates and thresholds.
Concessional Contributions: The Before-Tax Cap
The concessional contributions cap for 2026–27 is $32,500. Concessional contributions are before-tax contributions, and they are taxed within the superannuation fund at a concessional rate of 15% rather than your higher marginal income tax rate. For most Australians building long-term wealth, this represents one of the most efficient wealth-accumulation mechanisms available.
What Counts Toward the Concessional Cap?
Everything an employer pays on your behalf counts toward this limit, alongside any personal arrangements you make:
- Employer Superannuation Guarantee (SG) contributions
- Salary sacrifice arrangements set up through your employer
- Personal contributions for which you claim a tax deduction
- Amounts counted under defined benefit fund arrangements
A common misconception is that salary sacrifice sits on top of your employer’s SG obligations. It does not. Employer SG contributions consume the exact same cap, meaning individuals on higher salaries or with multiple income streams may have far less available room than anticipated. The ATO treats all these amounts as concessional regardless of who paid them.
Watch Out
Excess concessional contributions are included in your assessable income and taxed at your marginal tax rate, with an interest charge applied to reflect fund-level tax already paid. Always check your year-to-date employer contributions before arranging large salary sacrifice additions, especially if you changed jobs mid-year.
Non-Concessional Contributions: The After-Tax Cap
The non-concessional contributions cap for 2026–27 is $130,000. Non-concessional contributions are made using after-tax income or personal savings, meaning no further tax is levied when the money enters the fund. They suit individuals who have maximized their concessional capacity or those looking to transition accumulated personal savings into the superannuation environment.
How the Non-Concessional Cap Interacts with Your Total Super Balance
Your Total Super Balance (TSB) determines whether you are eligible to make non-concessional contributions. If your TSB sits at or above the general transfer balance cap ($2.1 million for 2026–27), your non-concessional cap for that year is nil. This rule catches many retirees out because it applies even to modest one-off contributions.
Consequently, the essential first step in any after-tax contribution plan is checking your TSB as reported on 30 June of the prior financial year, rather than looking at your account balance on the day of the contribution.
Carry-Forward Concessional Contributions: Using Unused Cap Space
Carry-forward concessional contributions allow you to utilize unused concessional cap space from up to five previous financial years. The space accrues automatically and can be drawn upon once your standard annual cap ($32,500) is fully exhausted. This mechanism is particularly valuable for individuals with fluctuating or irregular income streams, such as business owners or those receiving substantial performance bonuses.
Eligibility for Carry-Forward Contributions
Two core conditions govern access to carry-forward rules:
- Your Total Super Balance (TSB) must be under $500,000 on 30 June of the previous financial year.
- You must have accrued unused cap space from one of the preceding five financial years (rolling five-year window).
The $500,000 threshold is tested strictly on 30 June of the prior financial year. If your balance was under $500,000 on that date, you can use carry-forward space during the following year even if your balance later exceeds $500,000. Conversely, if your balance was at or above $500,000 on 30 June, you cannot access carry-forward space in that year.
How Unused Space Is Calculated
Unused space equals the difference between the concessional cap that applied in each respective year and the total concessional contributions actually made during that year. Unused space expires after five years and drops out of your rolling window.
Pro Tip
Carry-forward space is consumed in chronological order—oldest year first. If the oldest year in your five-year window is about to expire, utilizing it before 30 June preserves its value. Checking your ATO online portal figures in May allows you to arrange a personal deductible contribution before financial year-end.
Non-Concessional Bring-Forward Rule: Contributing Multiple Years at Once
The non-concessional bring-forward rule allows you to make a larger after-tax contribution in a single financial year by drawing upon future years’ cap allocations. Under the 2026–27 rules, the maximum bring-forward amount is three times the annual non-concessional cap ($390,000 total).
| Total Super Balance at 30 June 2026 | Bring-Forward Period Available | Maximum Contribution |
| Less than $1.84 million | Three years | $390,000 |
| $1.84 million to less than $1.97 million | Two years | $260,000 |
| $1.97 million to less than $2.1 million | Standard annual cap only | $130,000 |
| $2.1 million or above | Nil | $0 |
Once a bring-forward arrangement is triggered, the period runs for three consecutive financial years. You cannot trigger another bring-forward until that window concludes, making advance modeling essential.
Downsizer Contributions: Contributing Proceeds from Selling Your Home
If you are aged 55 or older and sell an eligible Australian home you have owned for at least 10 years, you may be able to make a downsizer contribution of up to $300,000 (or $600,000 for a couple) into superannuation.
Downsizer contributions are made using after-tax proceeds and offer a unique strategic advantage: they do not count towards your annual non-concessional contribution cap, nor do they require you to meet Total Super Balance (TSB) limits to contribute. This means you can make a downsizer contribution even if your TSB is at or above the $2.1 million Transfer Balance Cap.
To qualify, the contribution must be made within 90 days of receiving the sale proceeds, and a completed ATO Downsizer Contribution form must be submitted to your super fund before or at the time of making the payment.
Worked Examples: How the Caps Apply in Practice
Example 1: High-Income Earner & Salary Sacrifice
An executive earning $200,000 per year receives employer SG contributions of $23,000 across 2026–27. Because employer SG consumes part of the $32,500 concessional cap, their remaining voluntary salary sacrifice capacity is: $32,500 – $23,000 = $9,500. Arranging salary sacrifice above $9,500 without available carry-forward space would result in excess concessional contributions.
Example 2: Carry-Forward After a Career Break
An individual returning to work has a Total Super Balance (TSB) of $310,000 on 30 June 2026. Because their TSB is under $500,000, they are eligible to access unused concessional cap space from the preceding five financial years. If they accrued $25,000 in unused space, their total allowable before-tax contribution cap for 2026–27 is: $32,500 + $25,000 = $57,500
Example 3: Bring-Forward for Inheritance
A 62-year-old receives a $400,000 inheritance. Their TSB on 30 June 2026 was $1.65 million: Because their TSB is below $1.84 million, they qualify for the full 3-year bring-forward allocation of $390,000. They can contribute $390,000 as a non-concessional contribution in 2026–27, leaving the remaining $10,000 outside super (or utilizing a downsizer contribution if eligible). Their non-concessional cap will then be $0 for the following two financial years (2027–28 and 2028–29).
Take Control of Your Superannuation Strategy
Superannuation sits inside a broader financial plan, and contribution decisions rarely stand alone. Navigating caps, carry-forward spaces, bring-forward limits, and downsizer rules requires a coordinated strategy tailored to your exact retirement goals.
At Veyron Wealth Group, we help Australians structure compliant, tax-efficient superannuation strategies that turn complex rules into achievable financial outcomes.
Ready to Optimize Your Retirement Strategy?
- Call Us Directly: 0414 243 449
- Visit Our Website: veyron.com.au
- Book Your Session: Schedule a Free Initial Consultation Today
Frequently Asked Questions
What happens if I contribute more than the concessional cap?
The excess is included in your assessable income and taxed at your marginal rate, plus an excess concessional contributions charge. You may elect to release up to 85% of the excess from your super fund to pay the resulting tax liability.
Can unused concessional contributions be carried forward?
Yes, provided your total super balance was below $500,000 on 30 June of the previous financial year, you can utilize unused concessional cap space from up to five rolling years.
How does the bring-forward rule work for non-concessional contributions?
It permits eligible individuals under age 75 to access up to three years of non-concessional caps in a single year ($390,000), subject to your total super balance and age restrictions.
General Advice Disclaimer:
This article contains general information only and does not take into account your personal objectives, financial situation, or needs. Consider obtaining professional financial advice from Veyron Wealth Group before making investment or superannuation decisions.
