Super Contribution Caps Are Going Up From 1 July 2026
More Room to Build Your Retirement Savings
From 1 July 2026, superannuation contribution caps are increasing thanks to indexation. This is good news for anyone looking to boost their retirement savings, and particularly useful for high-income earners and those approaching retirement who want to maximise their super.
The New Numbers
| Cap | Current (2025-26) | New (2026-27) |
|---|---|---|
| Concessional (before-tax) | $30,000 | $32,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 |
| Transfer balance cap | $1.9 million | $2.1 million |
The concessional cap covers employer contributions (including the 12% SG), salary sacrifice, and personal deductible contributions combined.
The non-concessional cap covers after-tax contributions you make from your own savings.
What This Means in Practice
If you’re salary sacrificing: You can now direct an extra $2,500 per year into super before tax. On a marginal tax rate of 37%, that’s roughly an extra $925 in tax savings annually.
If you’re making after-tax contributions: The higher $130,000 cap gives you more room to top up your super from savings, an inheritance, or the sale of an asset.
If you’re using the bring-forward rule: The three-year bring-forward amount increases to $390,000 (3 x $130,000) for those under 75 with a total super balance under $1.54 million. This is a powerful strategy if you have a lump sum to contribute.
If you’re nearing retirement: The higher transfer balance cap means you can hold up to $2.1 million in the tax-free retirement phase. If your balance was previously capped, you may be able to move more into pension phase.
The Carry-Forward Strategy
One of the most underused super strategies is the carry-forward rule. If your total super balance is under $500,000 at 30 June of the previous financial year, you can use unused concessional cap amounts from the past five years.
With the cap increasing to $32,500, unused amounts will accumulate faster. For someone who has been contributing only the minimum SG for several years, this can create a significant one-off contribution opportunity.
For example, if your employer has been contributing $15,000 per year (12% of a $125,000 salary) and you haven’t made any additional contributions, you could have over $85,000 in accumulated unused cap space. A single large concessional contribution could deliver a substantial tax benefit.
Timing Matters
If you’re planning a large contribution, timing it correctly around the 1 July changeover is important. Contributions made before 30 June 2026 count under the current caps. Contributions from 1 July 2026 fall under the new, higher caps.
For some people, it makes sense to wait. For others (particularly those using carry-forward amounts), contributing before 30 June might be better. The right approach depends on your individual circumstances.
Get Personalised Advice
Super contribution strategies interact with your income, tax situation, existing super balance, and retirement timeline. What works for one person can be completely wrong for another.
Find a financial adviser on WealthWorks who can model the best contribution strategy for your situation before the new caps take effect.
Frequently Asked Questions
What are the new super contribution caps from July 2026?
The concessional (before-tax) cap increases to $32,500 per year, and the non-concessional (after-tax) cap increases to $130,000 per year.
What is the new transfer balance cap?
The transfer balance cap increases to $2.1 million from 1 July 2026, up from $1.9 million.
Can I carry forward unused concessional cap amounts?
Yes. If your total super balance is under $500,000 at 30 June of the previous year, you can carry forward unused concessional cap amounts from the previous five years.
