Superannuation Rates and Thresholds for 2026–27

From 1 July 2026, a number of key superannuation rates and thresholds are increasing. While these changes may create additional opportunities to build retirement savings, they also bring some important timing and eligibility considerations.

Concessional Contribution Cap Increasing to $32,500

One of the main changes is the increase to the concessional contribution cap, which rises to $32,500 for the 2026–2027 financial year. Concessional contributions generally include employer super guarantee contributions, salary sacrifice contributions, and personal contributions where a tax deduction is claimed. This may provide more room to make tax-effective contributions to super, particularly where you are looking to reduce taxable income or boost retirement savings.

The important point is that employer contributions count towards this cap. The super guarantee rate is 12%, and some employers may contribute more under an award, agreement, or workplace arrangement. Before starting or increasing salary sacrifice contributions, it is worth checking how much is already going into your fund. Otherwise, you may accidentally go over the cap while thinking you are simply being diligent.

A quick check of your payslip, super fund transactions, or myGov account can help you avoid an unpleasant surprise. Think of it like packing a suitcase: there is more room this year, but you still need to know what is already inside before adding another jumper.

Catch-Up Concessional Contributions Remain Available

The higher concessional cap is useful on its own, but some people may have access to an even larger opportunity through carry-forward, or “catch-up”, concessional contributions. Broadly, if your total super balance was less than $500,000 on 30 June 2026, you may be able to use unused concessional cap amounts from the previous five financial years.

Amongst the changes to the superannuation rates and thresholds, the $500,000 total super balance threshold for making carry-forward concessional contributions has remained the same for the 2026–2027 financial year. This may be particularly useful if you have had interrupted work patterns, taken time out of the workforce, sold an asset and realised a capital gain, or are approaching retirement and want to maximise your super savings.

Non-Concessional Contribution Cap Increasing to $130,000

The non-concessional contribution cap has increased to $130,000 for the 2026–27 financial year. These are generally after-tax personal contributions made from your own money or capital, and you do not claim a tax deduction for them.

For eligible members, the bring-forward rule may allow up to three years of non-concessional contributions to be made in one financial year, meaning a possible contribution of up to $390,000. That can be a powerful strategy for people who have received an inheritance, sold an investment property, downsized, or built up cash outside super.

Bring-Forward Rules Depend on Your Total Super Balance

This is also where the rules become more delicate. From 1 July 2026, if your total super balance on 30 June 2026 was less than $1.84 million, you may be able to use the full three-year bring-forward amount of $390,000.

If your balance was between $1.84 million but less than $1.97 million, the bring-forward amount reduces to $260,000. If it was between $1.97 million but less than $2.1 million, only the annual cap of $130,000 may be available. If your total super balance was $2.1 million, equal to the general transfer balance cap, or more, your non-concessional cap is nil.

The key date is 30 June of the previous financial year. Your balance during the year may rise or fall, but eligibility is tested based on that 30 June figure. It is a small detail with a big job.

It is also important to note that if you are already in a bring-forward period, you generally do not receive the benefit of indexation to the non-concessional contribution cap. Your maximum non-concessional contribution amount during the bring-forward period is usually set and locked in at the time the bring-forward arrangement is triggered.

General Transfer Balance Cap Increasing to $2.1 Million

The general transfer balance cap has increased to $2.1 million from 1 July 2026. This cap limits how much super can be transferred into retirement phase income streams, such as an account-based pension. The appeal of retirement phase is that investment earnings supporting the pension are generally tax-free, so a higher cap can be meaningful for people with larger balances who have not yet started a retirement phase pension.

However, not everyone automatically receives the full increase. If you had never commenced a retirement phase income stream, excluding a transition to retirement income stream, before 1 July 2026, you may have access to the full $2.1 million cap. If you had already started an account-based pension, your personal transfer balance cap may only increase proportionally, depending on how much of your cap you had previously used.

Contribution Age Rules Still Matter

Age also matters when thinking about contributions. Funds can generally accept certain voluntary contributions up to 28 days after the end of the month in which you turn 75, and the work test may still apply when claiming a deduction for personal contributions if you are aged 67 to 74.

In plain English: before contributing, check your age rules, balance rules, cap history, and pension history. It is much easier to plan before money moves than fix a mistake afterwards.

Final Thoughts

The 2026–27 financial year gives many Australians more room to contribute to superannuation and potentially move more into retirement phase. That is good news, particularly for people nearing retirement who want to strengthen their financial position. However, the bigger numbers do not remove the need for careful planning. Employer contributions, unused concessional caps, total super balance, bring-forward history, age, work test rules, and pension commencement timing can all affect what you are allowed to do.

Some facts in this article may become outdated if superannuation laws, ATO guidance, indexation rules, or government policy settings change after publication. The figures used are based on ATO information available for the 2026–27 financial year and should be checked before acting.

The information provided in this article is general in nature and has been prepared without considering your personal objectives, financial situation, or needs. It does not constitute financial advice. Before making any decisions, you should assess its appropriateness and seek professional financial advice tailored to your circumstances. Additionally, ensure you review the relevant Product Disclosure Statement (PDS) before deciding on any financial product.