There are limits on how much you can put into superannuation each year while still enjoying its tax concessions. These are the contribution caps, and they were indexed upwards from 1 July 2026. If you contribute above the caps you can face extra tax, so knowing the current limits — and the rules that let you contribute more in some years — is essential for anyone actively building their super.
This guide sets out the 2026–27 caps, explains the difference between concessional and non-concessional contributions, and covers the two rules that trip people up most: the bring-forward rule and the carry-forward rule. It sits under our broader guide to how superannuation works in Australia, which is a good starting point if the terms here are new to you.
The Two Types of Contribution
Every contribution to super is either concessional or non-concessional, and each has its own cap.
Concessional (before-tax) contributions are paid from money that has not yet been taxed at your normal rate. They include compulsory employer Super Guarantee payments, salary sacrifice, and personal contributions you claim a tax deduction for. These are taxed at 15% inside the fund.
Non-concessional (after-tax) contributions are made from money you have already paid income tax on, so they are not taxed again on the way in. Because there is no further tax benefit at the point of contribution, the cap is much higher.
The 2026–27 Caps at a Glance
| Contribution type | 2025–26 cap | 2026–27 cap (from 1 Jul 2026) |
|---|---|---|
| Concessional (before-tax) | $30,000 | $32,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 |
| Bring-forward, 2-year | — | $260,000 |
| Bring-forward, 3-year | — | $390,000 |
The concessional cap rose from $30,000 to $32,500 and the non-concessional cap from $120,000 to $130,000 on 1 July 2026. Both caps are indexed to average weekly ordinary time earnings (AWOTE) and move in steps — the concessional cap in $2,500 increments. The non-concessional cap is always set at four times the concessional cap, which is why it moved in lockstep.
Remember that your compulsory employer contributions count towards your concessional cap. If your salary is high enough that SG alone fills much of the $32,500, you have less room for salary sacrifice or deductible personal contributions than the headline figure suggests.
The Bring-Forward Rule (Non-Concessional)
The bring-forward rule lets you make several years’ worth of non-concessional contributions in a single year. This is useful if you have a lump sum — an inheritance, a property sale, or a maturing investment — that you want to move into super at once.
Under the 2026–27 caps, you can bring forward up to $260,000 (two years) or $390,000 (three years) in one hit, depending on your total super balance at the previous 30 June. The higher your balance, the smaller the bring-forward amount available, and above the relevant threshold you cannot use it at all. Those balance thresholds are tied to the general transfer balance cap, which rose to $2.1 million for 2026–27, and they are indexed — check the current figures at ato.gov.au before acting.
To trigger the bring-forward you must be under 75 and make a non-concessional contribution that exceeds the standard annual cap. Once triggered, your cap for the following one or two years is reduced accordingly.
The Carry-Forward Rule (Concessional)
The carry-forward rule works in the opposite direction and applies to concessional contributions. If you do not use your full concessional cap in a year, you can carry the unused portion forward for up to five financial years and use it later.
This is valuable for people with irregular income, career breaks, or a one-off spike in taxable income — for example, the year you sell an asset and want to offset a capital gain. To use carry-forward, your total super balance must be under $500,000 at 30 June of the previous year. Any unused cap amounts expire on a rolling five-year basis, so the oldest year drops off first.
Worked Example
Suppose Priya took two years off work and contributed nothing beyond a small amount of SG. She has around $40,000 of unused concessional cap accumulated. She returns to work, sells an investment property, and faces a large capital gains bill. In that year she can make a deductible personal contribution well above the standard $32,500 cap — using her carried-forward amounts — to reduce her taxable income, provided her total super balance was under $500,000 at the prior 30 June.
Common Pitfalls
- Forgetting employer contributions count. Salary sacrifice arrangements set months ago can push you over the concessional cap once SG and any bonuses are added.
- Timing. A contribution counts in the year your fund receives it, not when you send it. Contributions made near 30 June can slip into the wrong year.
- Exceeding the caps. Excess concessional contributions are added to your assessable income; excess non-concessional contributions can be taxed heavily unless you withdraw them. If you go over, act on the ATO’s notice promptly.
- Assuming eligibility. Both carry-forward and bring-forward depend on your total super balance at the previous 30 June. Check it before relying on either.
Which Contributions Count Towards Which Cap
A frequent source of confusion is knowing which cap a given contribution uses. As a quick reference:
- Concessional cap ($32,500): employer Super Guarantee, salary sacrifice, and personal contributions you claim a tax deduction for.
- Non-concessional cap ($130,000): personal after-tax contributions you do not claim a deduction for, and spouse contributions made on your behalf.
- Neither cap: downsizer contributions (up to $300,000 from a home sale) and the government co-contribution sit entirely outside the caps.
Getting this mapping right matters because a contribution placed in the wrong category — for instance, claiming a deduction on money you meant to leave as after-tax — can change which cap it counts against and whether it qualifies for other benefits.
Why the Caps Exist
The caps are the government’s way of limiting how much tax-concessionally treated money can flow into super each year. Without them, high earners could shelter unlimited income at the 15% contributions rate. The indexation to AWOTE means the caps grow roughly in line with wages over time, so their real value is broadly maintained. Understanding this logic helps explain why the rules are structured the way they are — generous, but bounded.
Making the Caps Work for You
The caps are not just limits to avoid breaching — they are a planning tool. Lower-income earners might combine after-tax contributions with the government co-contribution; couples can use spouse contributions and splitting to balance two accounts; and homeowners downsizing later in life can use the downsizer contribution, which sits outside these caps entirely. Higher earners should also check whether Division 293 tax applies before ramping up concessional contributions.
This article is general information only and not financial or tax advice; consider your own circumstances and speak to a licensed adviser or the ATO before acting.