The 2026-27 financial year is now underway, and SMSF trustees and members should take stock of the contribution caps and thresholds that apply this year. Getting contributions right is one of the most impactful decisions a fund member can make for long-term retirement wealth. Exceeding the limits, however, can result in significant tax consequences that are often difficult to unwind.
This guide sets out the key superannuation contribution caps for the 2026-27 financial year (FY2027), covering concessional contributions, non-concessional contributions, the bring-forward rule, carry-forward provisions, and the Total Super Balance thresholds that determine your eligibility.
Please note: Contribution caps and thresholds are subject to indexation and legislative change. The figures presented reflect the most current information available at the time of publication. Always verify current figures with the Australian Taxation Office (ATO) or a qualified SMSF adviser before making contribution decisions.
What Are Superannuation Contribution Caps?
Superannuation contribution caps are annual limits imposed by the Australian Government on the amount of money that can be contributed to a superannuation fund (including an SMSF) in a given financial year. Contributions that exceed these caps are subject to additional tax, which can erode the tax benefits that make superannuation such a powerful wealth-building vehicle.
There are two primary categories of superannuation contributions, each with its own cap:
- Concessional (before-tax) contributions - taxed at a concessional rate of 15% (or 30% for high-income earners under Division 293) when entering the fund.
- Non-concessional (after-tax) contributions - contributed from after-tax income with no further tax applicable within the fund for eligible members.
Concessional Contributions Cap for FY2027
Concessional contributions include all contributions made to your superannuation fund on a before-tax basis. Common examples include:
- Employer Superannuation Guarantee (SG) contributions, currently 12% of ordinary time earnings
- Salary sacrifice contributions arranged with your employer
- Personal contributions for which you have lodged a valid notice of intent to claim a tax deduction (under s.290-180 ITAA 1997)
Eligibility to Make Concessional Contributions
The concessional contributions cap applies to all fund members regardless of age. However, the type of concessional contribution you can make depends on your age:
- Under age 67: All types of concessional contributions are permitted without restriction, including salary sacrifice and personal deductible contributions.
- Age 67 to 74: Salary sacrifice and SG contributions are permitted. To make personal deductible contributions, you must satisfy the work test (gainfully employed for at least 40 hours in a period of 30 consecutive days in that financial year) or the work test exemption.
- Age 75 and over: Only mandated employer contributions (such as SG contributions) are permitted. Voluntary concessional contributions, including salary sacrifice, are not allowed.
The cap applies to your total concessional contributions across all superannuation funds, not just your SMSF.
Eligibility criteria are subject to change. Always confirm your eligibility directly with the ATO website before making contributions.
| Financial Year | Concessional Contributions Cap |
|---|---|
| 2023–24 | $27,500 |
| 2024–25 | $30,000 |
| 2025–26 | $30,000 |
| 2026-27 (FY2027) | $32,500 (increased from 1 July 2026) |
| Source: ATO – Contributions Caps. Indexed to Average Weekly Ordinary Time Earnings (AWOTE) in $2,500 increments. | |
What Happens If You Exceed the Concessional Cap?
If you exceed the concessional contributions cap, the excess amount is included in your assessable income and taxed at your marginal tax rate, with a 15% tax offset applied to recognise the contributions tax already paid by the fund. You may elect to withdraw up to 85% of the excess from your superannuation fund to pay the associated tax liability.
Tip: If your employer contributions alone are approaching the cap, review your salary sacrifice arrangements early in the financial year, particularly if you receive variable income, bonuses, or pay rises that could inadvertently push you over the limit.
Non-Concessional Contributions Cap for FY2027
Non-concessional contributions (NCCs) are personal contributions made from your after-tax income or savings for which you do not claim a tax deduction. NCCs can be a powerful strategy for boosting superannuation balances, particularly for those who have received an inheritance, sold an investment, or have surplus savings outside of super.
Eligibility to Make Non-Concessional Contributions
To be eligible to make non-concessional contributions for FY2027, you must:
- Have a Total Super Balance (TSB) below $2.1 million on 30 June 2026
- Be under age 75 at the time of making the contribution
- Not hold a temporary visa (certain exceptions apply)
If your TSB equals or exceeds $2.1 million (the general transfer balance cap for 2026-27), your NCC cap is nil and non-concessional contributions cannot be made.
Eligibility criteria are subject to change. Always confirm your eligibility directly with the ATO website before making contributions.
| Financial Year | NCC Cap (Annual) | Bring-Forward Maximum (3 Years) |
|---|---|---|
| 2023–24 | $110,000 | $330,000 |
| 2024–25 | $120,000 | $360,000 |
| 2025–26 | $120,000 | $360,000 |
| 2026-27 (FY2027) | $130,000 (increased from 1 July 2026) | $390,000 (increased from 1 July 2026) |
| Source: ATO – Contributions Caps. The NCC cap is linked to the concessional contributions cap. The bring-forward maximum is three times the annual NCC cap. | ||
The Bring-Forward Rule for Non-Concessional Contributions
The bring-forward rule allows eligible individuals to contribute up to three years' worth of non-concessional contributions in a single financial year. Your eligibility and the maximum amount you can bring forward depends on your Total Super Balance (TSB) on 30 June of the prior year:
| TSB on 30 June 2026 (for FY2027) | Bring-Forward Amount | Bring-Forward Period |
|---|---|---|
| Less than $1.84M | $390,000 (3 × $130,000) | 3 years |
| $1.84M to less than $1.97M | $260,000 (2 × $130,000) | 2 years |
| $1.97M to less than $2.1M | $130,000 (no bring-forward period) | 1 year |
| $2.1M or more | Nil | Not eligible for NCCs |
| Source: ATO – Non-Concessional Contributions Cap. Thresholds are calculated with reference to the general transfer balance cap ($2.1M for 2026-27) and the FY2027 NCC cap ($130,000). | ||
Important: If you triggered the bring-forward rule in a prior year and the arrangement is still in progress, contributions are counted against your remaining bring-forward amount, not a fresh cap. Check your ATO online services or speak with your SMSF adviser before making additional NCCs.
What Happens If You Exceed the Non-Concessional Cap?
If you exceed your non-concessional contributions cap, the excess amount may be subject to tax at the top marginal rate (currently 45%) plus the Medicare levy, which is one of the harshest tax outcomes in the superannuation system.
When excess NCCs are identified, the ATO will issue an excess non-concessional contributions determination. This determination sets out the excess amount and the associated tax liability, and gives you 60 days to choose one of two options:
- Withdraw the excess (plus 85% of associated earnings) from your superannuation fund. The withdrawn earnings are included in your assessable income, but the tax on the excess itself is reduced.
- Leave the excess in the fund, in which case the full excess is taxed at the top marginal rate plus Medicare levy within the fund.
For full details on what the determination covers and how to respond, see the ATO – Exceeding Your Non-Concessional Contributions Cap.
Act early: If you suspect you may be approaching or have exceeded your contribution caps, contact your SMSF adviser promptly. Early intervention can sometimes result in the ATO exercising discretion to disregard or re-allocate excess contributions in genuinely exceptional circumstances.
Carry-Forward of Unused Concessional Contributions
Since 1 July 2019, eligible individuals can carry forward unused concessional contribution cap amounts and use them in a subsequent year. Unused amounts can be carried forward for up to five years on a rolling basis, after which they expire.
To access carry-forward amounts, your TSB must be below $500,000 on 30 June of the prior year. To check your available carry-forward balance, log in to myGov, select the ATO, then navigate to Super > Information > Carry-forward concessional contributions. The balance shown reflects unused cap amounts from the prior five years.
Total Super Balance (TSB): Why It Matters
Your Total Super Balance (TSB) is calculated as at 30 June each year and is the sum of your superannuation interests across all funds. Your TSB directly impacts:
- Your eligibility to make non-concessional contributions
- Your access to the bring-forward rule and the maximum bring-forward amount
- Your eligibility to make carry-forward concessional contributions
- Whether you are required to pay Division 293 tax (for income and concessional contributions above $250,000)
Downsizer Contributions
Downsizer contributions allow eligible individuals to contribute up to $300,000 (or $600,000 per couple) into superannuation from the proceeds of selling their principal place of residence. These sit outside the standard concessional and non-concessional caps, with no TSB limit applying.
Key eligibility criteria include:
- You must be aged 55 or over at the time of making the contribution
- The property must have been owned (by you or your spouse) for at least 10 years
- The property must have qualified as your principal place of residence at some point during your period of ownership
- The contribution must be made within 90 days of settlement
- The downsizer measure must not have been previously used for an earlier property sale by you or your spouse
- You must provide your super fund with a completed Downsizer Contribution into Super form at or before the time of making the contribution
Eligibility criteria are subject to change. Always confirm your eligibility directly with the ATO website before making contributions.
Government Super Co-Contribution
The government super co-contribution is a scheme designed to help low and middle-income earners boost their retirement savings. If you are eligible and make personal after-tax (non-concessional) contributions to your super fund, the government may also contribute, up to a maximum of $500 per financial year.
The government contributes 50 cents for every $1 of eligible personal contributions you make, up to the $500 maximum. To receive the full $500, you need to contribute $1,000 in personal after-tax contributions in the financial year.
Eligibility for FY2027
To be eligible for the co-contribution in 2026–27, you must:
- Have made personal non-concessional contributions to a complying super fund during the year
- Have a total income below $64,293 (the upper income threshold for FY2027)
- Earn at least 10% of your total income from employment or business activities
- Be under 71 years old at the end of the financial year
- Have a Total Super Balance below the general transfer balance cap ($2.1M) at the end of 30 June 2026
- Not have exceeded your non-concessional contributions cap for the year
- Have lodged your tax return for the relevant year
Eligibility criteria are subject to change. Always confirm your eligibility directly with the ATO website before making contributions.
| Income Range (FY2027) | Co-Contribution Amount |
|---|---|
| $49,293 or below | Maximum: $500 (with $1,000 personal contribution) |
| Between $49,293 and $64,293 | Partial - reduces progressively as income rises |
| $64,293 or above | Nil - not eligible |
| Source: ATO – Super Co-Contribution. Income thresholds are indexed annually. | |
There is no application required. The ATO automatically calculates and pays any co-contribution entitlement when you lodge your tax return, provided your super fund holds your Tax File Number (TFN).
Key Takeaways for FY2027
- The concessional contributions cap increased to $32,500 from 1 July 2026 (up from $30,000).
- The non-concessional cap increased to $130,000, with a bring-forward maximum of $390,000 over three years (up from $360,000).
- Your TSB as at 30 June 2026 determines your eligibility for NCCs, the bring-forward rule, and carry-forward contributions for FY2027.
- The government co-contribution provides up to $500 per year for eligible low-to-middle income earners who make personal after-tax contributions. Worth considering if your income is below $64,293.
- Downsizer contributions remain one of the most flexible ways to boost super for those aged 55 and over, and sit outside the standard caps.
- Always review contributions across all funds, not just your SMSF, to avoid inadvertently exceeding any cap.
Need Help Understanding SMSF Contributions?
Understanding contributions is one of the most important and complex areas of SMSF administration. At Altitude SMSF Accounting, we help SMSF trustees understand the contribution rules and thresholds that may apply to their fund. If you have questions about how contribution caps may apply to your SMSF, get in touch. We are happy to help.
Further Reading
- ATO: Contributions Caps - Current cap amounts and indexation history
- ATO: Non-Concessional Contributions Cap - Eligibility, TSB thresholds, and the bring-forward rule
- ATO: Carry-Forward Concessional Contributions - How unused cap amounts accumulate and are applied
- ATO: Super Co-Contribution - Eligibility criteria and income thresholds
- ATO: Downsizer Super Contributions - Eligibility, limits, and how to make a downsizer contribution
- ATO: Caps, Limits and Tax on Super Contributions - Overview of all contribution types and applicable tax
This article has been prepared for general information purposes only and does not constitute financial, investment, legal or taxation advice. Altitude SMSF Accounting Pty Ltd does not hold an Australian Financial Services Licence (AFSL). Legislative requirements and contribution cap thresholds are subject to change. Verify current figures with the ATO or a qualified SMSF adviser before making contribution decisions.