Concessional Contributions Cap Rises to $32,500 in 2026-27

Yes, the concessional contributions cap has risen to $32,500 from 1 July 2026, up from the $30,000 that applied for the 2024-25 and 2025-26 financial years. The increase comes from indexation against Average Weekly Ordinary Time Earnings, which moves the cap in $2,500 increments once earnings growth clears the threshold for another step. The non-concessional cap, calculated as four times the concessional cap, has risen alongside it, from $120,000 to $130,000.

What counts toward the concessional cap

The concessional cap covers super contributions made from before-tax money, taxed at 15% within the fund rather than at your marginal rate. Three types of contribution count against it:

• Superannuation guarantee: the compulsory contributions your employer must pay on your behalf.
• Salary sacrifice: extra contributions you arrange with your employer to come from your pre-tax salary.
• Personal deductible contributions: amounts you contribute yourself and then claim as a tax deduction.

All three are added together against the one cap, not treated as separate allowances.

Why the extra $2,500 is worth planning around

For most employees, superannuation guarantee alone will not come close to the new $32,500 cap, which leaves room to add salary sacrifice or a personal deductible contribution and still stay within the limit. For business owners paying themselves a salary, or anyone who receives a bonus, a windfall or a capital gain this year, that extra headroom is a genuine opportunity to move more income into the concessional, lower-taxed environment before 30 June, as part of a broader look at using superannuation as a tax strategy.

The gap between the compulsory superannuation guarantee rate and the full cap is exactly where most of this planning happens. A business owner who only ever receives the statutory contribution is typically using a fraction of the available cap each year, which is a missed opportunity for anyone with the cash flow to add to it, particularly in a year with higher than usual profit or a one-off gain to shelter.

The carry-forward rule still applies

If your total super balance was under $500,000 at the end of the previous financial year, you can carry forward any unused concessional cap from the past five years and use it in a single year, on top of the current year's cap. This is particularly useful for anyone who took time out of the workforce, ran a business with irregular income, or simply did not use their full cap in earlier years. Checking your unused cap amounts before making a large contribution can materially change how much you are able to contribute concessionally in one go.

Each year's unused amount only carries forward for five years before it drops off, so the oldest unused year in the running total is the one worth using first if you are planning a larger contribution. Your annual statement or the ATO's own online services will show the unused amounts by year, which is the starting point for working out how much is genuinely available before you commit to a contribution.

Getting the timing right

Contributions count against the cap in the financial year they are actually received by your fund, not the year you instruct the payment. A salary sacrifice or personal contribution made in the last week of June can easily land in the fund's account in July, pushing it into next year's cap instead of this year's, and potentially wasting the extra room you were counting on. Processing times vary between funds and payment methods, so a contribution needs to be sent with enough buffer before 30 June, not on the day itself, if it is meant to count in the current year.

Exceeding the cap has its own cost

Contributions above the concessional cap are added to your assessable income and taxed at your marginal rate, with an interest charge on top to reflect the delay in that tax being collected. The extra cap room is useful, but only if what you actually contribute stays within it once superannuation guarantee, salary sacrifice and any personal contributions are all added together.

Making the most of the new cap

An extra $2,500 of concessional cap is modest on its own, but combined with unused prior-year cap for those eligible, it can add up to a meaningful contribution opportunity before the end of this financial year. If you want help working out how much room you actually have and when a contribution needs to land to count in the right year, talk to us before you make it rather than after.

Disclaimer: This article contains general information only and does not constitute financial, legal or tax advice. It has been prepared without regard to your objectives, financial situation or needs. Tax and superannuation laws change frequently, and the information in this article may not reflect the current law or may become inaccurate over time. Before acting on anything in this article, you should consider its appropriateness to your circumstances and seek advice from a registered tax agent or qualified adviser.