Client Alert: Super Contribution Caps are increasing from 1 July 2026 – what you need to know
From 1 July 2026, key superannuation contribution limits will increase as a result of indexation to Average Weekly Ordinary Time Earnings (AWOTE).
These changes create valuable opportunities for individuals to boost their retirement savings in a highly tax‑effective environment — particularly for higher income earners and those approaching retirement.
Here is a clear breakdown of what is changing and what it could mean for you.
Concessional Contributions Cap: Increasing to $32,500
The concessional (before-tax) contributions cap will increase from $30,000 to $32,500 per year.
This cap includes employer Superannuation Guarantee (SG) contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed.
Personal contributions are possible for people under age 75, provided the work test requirement is met for those aged 67-74 (40 hours paid employment over a consecutive 30 day period).
The increase allows individuals to contribute an additional $2,500 per year to super at the concessional contributions tax rate of 15%.
Non-Concessional Contributions Cap: Increasing to $130,000
The non-concessional (after-tax) contributions cap will increase from $120,000 to $130,000 per year. Non‑concessional contributions are made from money on which income tax has already been paid and are tax‑free on receipt to the super fund. These are possible for people under age 75.
Eligibility to make non-concessional contributions continues to depend on your Total Superannuation Balance (TSB) as at 30 June of the prior financial year (see below). With the relevant thresholds increasing from 1 July 2026, some individuals may regain eligibility to make after-tax contributions.
Higher Bring-Forward Contribution Limits: Increasing to $390,000
The bring-forward rules allow up to three years’ worth of non-concessional contributions to be made in a single year.
From 1 July 2026, the maximum bring-forward amount increases to $390,000.
The available bring-forward period and amount will depend on your Total Superannuation Balance at 30 June 2026.
New Bring Forward Thresholds for Non‑Concessional Contributions: 1 July 2026
| Total Super Balance at 30 June 2026 | Bring‑Forward Period Available | Maximum NCC Contribution |
| $2.1m or more | none | Nil (no NCCs permitted) |
| $1.97m to less than $2.1m | none | $130,000 (standard annual cap only) |
| $1.84m to less than $1.97m | 2 years | Up to $260,000 (2 × $130,000) |
| Less than $1.84m | 3 years | Up to $390,000 (3 × $130,000) |
This change is particularly relevant for:
- Individuals contributing proceeds from private asset sales
- Estate planning strategies
- Couples equalising super balances
Related Change: Transfer Balance Cap: Increasing to $2.1 million
The general transfer balance cap will increase to $2.1 million from 1 July 2026. This change impacts eligibility to make non-concessional contributions and also affects how much can be transferred into the tax-free retirement phase.
Key Planning Considerations
With these changes approaching, now is good time to review your contribution strategy:
- Timing matters: Contributions made before 30 June 2026 are subject to current caps; contributions from 1 July 2026 fall under the higher limits
- Carry‑forward strategies may be enhanced by the higher concessional cap
- Bring‑forward rules should be carefully managed to avoid locking yourself into lower caps unnecessarily
- Total super balance thresholds remain critical when planning large contributions
How Allan Hall Can Help
The increase in the contribution caps from 1 July 2026 provides valuable new opportunities to build superannuation wealth in a concessionally taxed environment. However, the rules remain complex, the caps are strictly enforced by the ATO and exceeding them can be costly so strategic timing is essential.
We can assist you in reviewing your position pre and post 30 June and ensuring any contributions are optimised and structured appropriately under the updated limits. Please contact your Allan Hall adviser for guidance.
CONTACT ALLAN HALL SUPERANNUATION