Superannuation contribution caps to increase from 1 July 2026
18/03/2026
From 1 July 2026, several key superannuation thresholds will increase due to indexation. These changes create additional opportunities for eligible individuals to make larger contributions to super in a tax-effective environment, particularly where non-concessional and bring-forward strategies are being considered.
We summarise the main changes below and explain what they may mean for you.
Contribution caps from 1 July 2026
Concessional (before-tax) contributions
The annual concessional contributions cap will increase to $32,500. This cap includes employer Super Guarantee contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed.
If your total super balance was less than $500,000 at 30 June 2026, you may also be able to access unused concessional cap amounts from the previous five financial years under the carry-forward rules.
Non concessional (after-tax) contributions
The standard annual non-concessional contributions cap will increase to $130,000. Eligibility to make non-concessional contributions continues to depend on your total super balance at 30 June of the previous financial year.
Bring-forward rule thresholds
If you are under age 75, the bring-forward rule may allow you to contribute up to three years’ worth of non-concessional contributions in a single year. From 1 July 2026, the maximum amount you can contribute under the bring-forward rule, and the length of the bring-forward period, will depend on your total super balance at 30 June 2026.
The thresholds will be as below:
| Total super balance | Bring-forward allowance |
|---|---|
| Less than $1.84m | Up to $390,000 over three years |
| $1.84m to less than $1.97m | Up to $260,000 over two years |
| $1.97m to less than $2.1m | No bring-forward available. Annual cap of $130,000 |
| $2.1m or more | No non-concessional contributions permitted |
It is important to note that if you have already triggered a bring-forward period in an earlier financial year, you will remain subject to the previously applicable caps until that bring-forward period ends.
Transfer balance cap and flow-on impacts
From 1 July 2026, the general transfer balance cap will increase from $2.0m to $2.1m. This cap limits the amount that can be transferred into the tax-free retirement phase.
The increase in the transfer balance cap will also flow through to a number of other thresholds, including total super balance limits that determine eligibility for non-concessional contributions and bring-forward arrangements.
If you have already commenced a retirement phase income stream, any increase to your personal transfer balance cap will be proportionate and will depend on how much of your cap you have previously used.
What you should be thinking about now
With these increases approaching, it may be timely to:
- review your contribution strategy for the 2026-27 financial year
- consider whether delaying non-concessional contributions until after 1 July 2026 could allow larger amounts to be contributed
- check whether triggering a bring-forward arrangement before 30 June 2026 could limit your flexibility once the higher caps apply
- review your total super balance ahead of 30 June 2026 to understand future contribution eligibility.
As always, contribution strategies need to be considered in the context of your broader financial position, cash flow, and tax circumstances.
How SW can help
At SW, we can work with you to assess your current superannuation position and develop a tailored contribution strategy aligned with your broader financial goals. We can assist in reviewing your eligibility for concessional and non-concessional contributions, advising on the optimal timing of contributions, including bring-forward strategies, and assessing your total super balance and transfer balance cap position. We also ensure your approach is tax-effective and aligned with your cash flow and investment objectives.
If you would like to discuss how these changes may apply to you, please get in touch with your adviser.
Contributor
Dominic Lam
