Contribution caps are the most common reason people pay more tax on super than they meant to. The caps themselves are simple numbers. The traps are in the edges: which contributions count, which year they land in, what your total super balance was last 30 June, and whether a bring-forward period is already running.
This guide sets out the caps for 2026–27, how carry-forward and bring-forward work, how Division 293 adds tax for higher earners, what happens if you go over, and the timing mistakes we fix most often. It applies to every super fund, not just SMSFs. It's general information. How much you should contribute, and into which fund, is financial product advice from a licensed adviser. We model the tax and make sure the paperwork works.
What are the super contribution caps for 2026–27?
| Cap or threshold | 2026–27 | 2025–26 |
|---|---|---|
| Concessional (before-tax) contributions cap | $32,500 | $30,000 |
| Non-concessional (after-tax) contributions cap | $130,000 | $120,000 |
| Maximum non-concessional under bring-forward | $390,000 over 3 years | $360,000 over 3 years |
| Total super balance at which the non-concessional cap becomes nil | $2.1 million (balance at 30 June 2026) | $2 million (balance at 30 June 2025) |
| Carry-forward eligibility | Total super balance under $500,000 at 30 June 2026 | Under $500,000 at 30 June 2025 |
| Division 293 threshold | $250,000 | $250,000 |
| Super guarantee rate | 12% | 12% |
| CGT cap (small business sale proceeds) | $1,935,000 lifetime | $1,865,000 lifetime |
Your total super balance is the value of all your super interests, in every fund, at the previous 30 June. For 2026–27, that's 30 June 2026. A balance that grows during the year doesn't change this year's caps.
What counts as a concessional contribution?
Concessional contributions are taxed at 15% when they reach the fund. They include:
- Super guarantee paid by your employer (12% of qualifying earnings for 2026–27)
- Salary sacrifice and any other employer contributions
- Personal contributions you claim as a tax deduction, which is how the self-employed, investors and people whose employer won't offer salary sacrifice get money in before tax.
The deduction paperwork
To claim a deduction for a personal contribution, you must give your fund a notice of intent to claim and receive its acknowledgement:
- before you lodge your tax return for that year, and no later than the end of the following financial year
- before you roll the money to another fund, withdraw it, or use it to start a pension. Once the money has moved, the notice can't be validly given for it.
If you're 67 to 74, you must also have worked at least 40 hours in a 30-day period during the year, or qualify for the one-off work test exemption, to claim the deduction.
Our salary sacrifice agent works out how much an employee can sacrifice without going over the cap after super guarantee; your accountant checks it against your ATO record before anything changes with payroll.
How does carry-forward of unused concessional contributions work?
If your total super balance was under $500,000 on 30 June 2026, you can add unused concessional cap from the previous five years to this year's $32,500. For 2026–27, the five years are 2021–22 to 2025–26. Unused amounts from 2020–21 expired on 30 June 2026.
| Year | Concessional cap |
|---|---|
| 2021–22 | $27,500 |
| 2022–23 | $27,500 |
| 2023–24 | $27,500 |
| 2024–25 | $30,000 |
| 2025–26 | $30,000 |
| 2026–27 (current) | $32,500 |
Unused amounts are applied oldest first. The test is your balance at the previous 30 June, so you can be eligible this year even if your balance has since passed $500,000.
Worked example: using carry-forward after a capital gain
Hypothetical, rounded, 2026–27 resident rates.
Priya is 52 and self-employed. Her total super balance was $380,000 on 30 June 2026. Her ATO record shows $70,000 of unused concessional cap from 2021–22 to 2025–26. This year she has $120,000 of business income and sells an investment property, making a net capital gain of $100,000 after the 50% discount. Her taxable income before any super deduction is $220,000. She has already made $15,000 of concessional contributions this year.
- Available concessional cap: $32,500 + $70,000 = $102,500
- Room left: $102,500 − $15,000 = $87,500 of personal deductible contributions
| No extra contribution | $87,500 deductible contribution | |
|---|---|---|
| Taxable income | $220,000 | $132,500 |
| Personal tax saved (incl. Medicare levy) | — | about $36,350 |
| Contributions tax paid by the fund (15%) | — | $13,125 |
| Net tax saving | — | about $23,200 |
| Division 293 check (income + concessional contributions) | — | $132,500 + $102,500 = $235,000, under $250,000 |
She must lodge the notice of intent and get the fund's acknowledgement before lodging her return, and the money is preserved until she meets a condition of release. If her concessional contributions had pushed her over $250,000, Division 293 would have added 15% on part of them.
What is the non-concessional cap and the bring-forward rule?
Non-concessional contributions are after-tax money you put in without claiming a deduction, including spouse contributions made for you. They aren't taxed when they go in. The cap for 2026–27 is $130,000, and it falls to nil if your total super balance on 30 June 2026 was $2.1 million or more.
If you're under 75 at any time in the year, you can bring forward up to two future years' caps. How much depends on your balance on 30 June 2026:
| Total super balance on 30 June 2026 | Most you can contribute | Period |
|---|---|---|
| Less than $1.84 million | $390,000 | 3 years |
| $1.84 million to less than $1.97 million | $260,000 | 2 years |
| $1.97 million to less than $2.1 million | $130,000 | No bring-forward |
| $2.1 million or more | Nil | — |
Three rules people miss:
- It triggers automatically. Contribute more than $130,000 in a year and the bring-forward period starts, whether you meant it to or not.
- It's fixed. Once triggered, the amount doesn't increase when caps are indexed later in the period.
- Your balance still matters in years two and three. If your total super balance reaches $2.1 million at a later 30 June, your remaining cap for the rest of the period is nil.
What is Division 293 tax?
Division 293 is an extra 15% tax on concessional contributions for people whose income plus concessional contributions exceed $250,000. It roughly doubles the contributions tax for higher earners, from 15% to 30%. That's still below the 47% top personal rate, so concessional contributions usually remain worth making.
It's charged on the lesser of your concessional contributions and the amount above $250,000. Income for this purpose includes taxable income, reportable fringe benefits and net investment losses, among other items.
Example: Sam has income of $240,000 and concessional contributions of $15,000. Combined, that's $255,000, which is $5,000 over the threshold. Division 293 tax is 15% × $5,000 = $750.
The ATO issues a separate notice. You can pay it personally or elect to release the amount from your super.
What happens if you go over a cap?
| Excess concessional contributions | Excess non-concessional contributions | |
|---|---|---|
| How it's taxed | Added to your assessable income and taxed at your marginal rate, with a 15% offset for the contributions tax already paid | Option 1: release the excess plus 85% of associated earnings; the earnings are taxed at your marginal rate with a 15% offset. Option 2: leave it in and pay 47% on the excess |
| Release from super | You can release up to 85% of the excess to help pay the tax | Option 1 is usually the better choice |
| Knock-on effect | Any excess you don't release counts towards your non-concessional cap | A large unreleased excess is very expensive |
| Interest charge | The old excess concessional contributions charge stopped from 1 July 2021 | Associated earnings are calculated by the ATO using a set rate, not your fund's actual return |
The ATO sends a determination after both your tax return and your funds' reports are in, often many months after year end. Respond within the time on the notice. If you don't elect, the default outcome is usually worse.
When does a contribution count? The timing traps
Contributions count in the financial year your fund receives them, not when you or your employer send them. This causes more cap problems than anything else.
- The 30 June transfer. A personal contribution sent on 29 June that lands on 1 July counts for 2027–28. Send it in the first half of June.
- Payday Super. From 1 July 2026, employers must pay super guarantee within 7 business days of each payday instead of quarterly. Super on a late-June payday can land in July and count towards next year's cap. Two years' worth of June super can end up in one year, so check before topping up.
- Salary sacrifice in June. The same applies. Ask payroll when June's sacrifice will actually reach the fund.
- Deduction notice after a rollover. Roll the money to a new fund or start a pension before giving the notice, and you lose the deduction.
- Turning 75. Voluntary contributions must arrive no later than 28 days after the end of the month you turn 75.
- Bring-forward already running. A $130,000 contribution in what you thought was a fresh year can be an excess if you triggered a bring-forward two years ago.
- Your balance at 30 June. Withdrawals to get under the $2.1 million or $500,000 thresholds only help if they happen before 30 June of the year before the contribution.
- SMSF contribution reserving. An SMSF can receive a contribution in June and allocate it to the member within 28 days after the end of the month. It can change which year's cap the contribution counts against, but the mechanics are strict and the member must lodge a request with the ATO. Don't attempt it without advice.
Contributions that don't count towards the caps
Some contributions sit outside the concessional and non-concessional caps:
- Downsizer contributions: up to $300,000 each from the sale of a home owned for at least 10 years, if you're 55 or older, contributed within 90 days of receiving the proceeds. No upper age limit and no total super balance test, but the contribution increases your total super balance afterwards.
- Small business CGT contributions: proceeds from selling active business assets that qualify for the small business CGT concessions, up to the lifetime CGT cap of $1,935,000 for 2026–27. The election must be made when the contribution is made, on the ATO form. Miss it and the contribution counts as non-concessional. See our guide to small business CGT concessions.
- Personal injury contributions from a structured settlement or court order, with the ATO election made on time.
- Government co-contributions and the low income super tax offset.
Mistakes we see with contributions
- Forgetting super guarantee when working out salary sacrifice room.
- Claiming a deduction without a valid, acknowledged notice of intent, or giving the notice after a rollover.
- Contributing to two funds and only tracking one. The caps are per person, across every fund.
- Missing an active bring-forward period and triggering a second one that doesn't exist.
- Reading this year's balance instead of last 30 June's when checking carry-forward or bring-forward eligibility.
- Late June transfers that land in July.
- Missing the small business CGT cap election, so a large contribution becomes an excess.
- Ignoring the release authority on an excess determination and paying more tax than necessary.
- Not balancing super between spouses. Contribution splitting and spouse contributions can keep both of you under the thresholds that matter later, including the transfer balance cap and the $3 million Division 296 threshold.
How BPAG helps with contributions
Contribution planning sits naturally with your tax return and your business's year-end planning. Our tax planning service models the deduction against your actual income each year, before 30 June, not after.
- Cap check: we pull your total super balance, carry-forward amounts and bring-forward status from ATO online services and reconcile them to your fund.
- Deduction: we check the notice of intent is valid and acknowledged before your return is lodged.
- SMSFs: we record contributions by date received and member, check the trustee can accept them, and report them correctly in the annual return. See our SMSF accounting service.
- Employers: under Payday Super, our payroll service pays super each payday so your own contributions and your staff's land when they should.
Our super and SMSF agent tests each proposed contribution against the caps and thresholds for the year; your accountant reviews it with your actual ATO figures. Agents draft, qualified accountants review and sign off.
How much to contribute, and into which fund, is a financial product decision. A licensed financial adviser (AFSL holder) makes that recommendation; we provide the tax numbers they need. If you're working out whether to start a pension once the money is in, read our guide to SMSF pensions.
Frequently asked questions
Do employer super guarantee payments count towards my concessional cap?
Yes. Super guarantee, salary sacrifice, other employer contributions and personal contributions you claim a deduction for all count towards the same $32,500 cap for 2026–27. Many people on higher salaries have less room than they think once super guarantee at 12% is taken out.
Can I contribute to super after 75?
Only in limited ways. Voluntary contributions must be received no later than 28 days after the end of the month in which you turn 75. After that, a fund can generally only accept mandated employer contributions (such as super guarantee) and downsizer contributions.
Is there a work test for super contributions?
Only for one type now. Since 1 July 2022, people aged 67 to 74 can make non-concessional and salary sacrifice contributions without meeting a work test. To claim a tax deduction for a personal contribution at those ages, you must still have worked at least 40 hours in a 30-day period in the year, or qualify for the one-off work test exemption.
How do I see my carry-forward amount and bring-forward status?
Log in to ATO online services through myGov and look under Super, then Information. The ATO shows your carry-forward concessional cap and whether a bring-forward period is running. SMSF data can lag, so check it against your fund's records before relying on it.
Can I split my contributions with my spouse?
Usually yes. You can ask your fund to split up to 85% of the previous year's concessional contributions to your spouse's account, as long as your spouse is under preservation age, or is under 65 and not retired. It can help balance super between spouses, which matters for the transfer balance cap and Division 296.
Are contributions to an SMSF taxed differently from contributions to an industry fund?
No. The caps, the 15% contributions tax, Division 293 and the excess contribution rules are the same in every fund. What differs is administration: in an SMSF, the trustee is responsible for allocating contributions, acknowledging deduction notices and returning contributions the fund can't accept.
Official sources
General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.