The government has confirmed that superannuation contribution caps are increasing from 1 July 2026 — and if your super strategy is built around the current limits, now is the time to update your plan.

What Are the New Super Contribution Caps for 2026?

From 1 July 2026, the contribution limits are:

• Concessional contributions cap: increases from $30,000 to $32,500 per year
• Non-concessional contributions cap: increases from $120,000 to $130,000 per year
• Bring-forward rule (non-concessional): increases from $360,000 to $390,000

What Are Concessional Super Contributions?

Concessional contributions are made from pre-tax income and include employer superannuation guarantee contributions, salary sacrifice, and personal contributions you claim as a tax deduction.

The key benefit is the tax deduction. Your fund will charge 15% tax on concessional contributions on entry — but for most Australians on marginal tax rates above 15%, this is still a significant saving.

For example, if you’re earning $200,000 and receiving 12% SG, your employer is already contributing $24,000 per year. Under the new cap, you’ll have an extra $8,500 of headroom to make additional contributions — each attracting a full tax deduction.

What Are Non-Concessional Super Contributions?

Non-concessional contributions are after-tax dollars — money you’ve already paid income tax on. There’s no tax deduction when you contribute, and no 15% contributions tax when the money enters super.

The cap is increasing from $120,000 to $130,000 per year. This might be used for lump sum deposits of savings, proceeds from selling an investment, or accelerating your balance before retirement.

The Bring-Forward Rule Is Also Increasing

If you’re under 75, you may be eligible to use the bring-forward rule, which allows you to contribute up to three years’ worth of the non-concessional cap in a single year.

Under the new caps, the bring-forward amount increases to $390,000 (3 x $130,000), up from $360,000.

Don’t Forget Catch-Up Contributions

If you’ve had years where you contributed less than the concessional cap, you may be able to carry forward unused amounts and make catch-up contributions — looking back up to 5 financial years.

These strategies can be particularly powerful for clients in the final years before retirement.

What Should You Do Before 1 July 2026?

If your strategy is built around the current $30,000 or $120,000 caps, it’s worth reviewing your plan now. Our team at Advice Loop specialises in super contribution strategies for pre-retirees and retirees.

Book a conversation at adviceloop.com.au

General information only — not personal financial advice.