Few things in personal finance have as direct an impact on your retirement savings as the super contribution caps. With the 2025-26 caps now set, knowing exactly how much you can put in—and what happens if you go over—could save you thousands in penalties. This article breaks down the current concessional cap of $30,000, the non-concessional cap of $120,000, and the recent rise in the transfer balance cap to $2 million, so you can plan your contributions with confidence.

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Concessional cap 2025-26: $30,000 · Non-concessional cap 2025-26: $120,000 · General transfer balance cap (from 1 Jul 2025): $2,000,000 · Super guarantee rate 2025-26: 11.5%

Quick snapshot

1Confirmed facts
2What’s unclear
3Timeline signal
  • 1 July 2024 – 30 June 2025: caps at $30K/$120K/$1.9M
  • 1 July 2025 – 30 June 2026: caps at $30K/$120K/$2M; downsizer age rises to 60
  • Mid-2026: ATO announces 2026-27 caps; potential concessional cap increase to $35K
4What’s next
  • Concessional cap could rise to $35,000 based on wage growth projections (Heffron)
  • Non-concessional cap likely to remain at $120,000 or increase proportionally (Heffron)
  • Final figures published by ATO typically in May/June each year (Heffron)

Six key limits that define your contribution room in 2025-26 reveal a clear pattern: the system rewards careful timing and penalises unplanned excess.

Label Value
Concessional cap 2025-26 $30,000
Non-concessional cap 2025-26 $120,000
General transfer balance cap (from 1 Jul 2025) $2,000,000
Super guarantee rate 2025-26 11.5%
Downsizer contribution max (per person) $300,000
Excess concessional contributions tax rate Marginal rate + 2% charge

What is the maximum super contribution for 2025?

Concessional contribution cap 2025-26

  • The annual concessional (before-tax) contributions cap for 2025-26 is $30,000 (ATO (federal revenue authority)).
  • This cap applies to employer SG, salary sacrifice, and personal tax-deductible contributions combined.
  • Unused carry-forward amounts from the previous five years can increase this cap if your total super balance was under $500,000 at June 30 (Challenger (financial services firm)).

Non-concessional contribution cap 2025-26

  • The annual non-concessional (after-tax) cap is $120,000 (ATO).
  • If eligible for the bring-forward rule, you can contribute up to $360,000 over three years (CareSuper (industry super fund)).
  • The full bring-forward is only available if your total super balance is less than $1.76 million at June 30 (Challenger).

General transfer balance cap

  • From 1 July 2025, the general transfer balance cap increased to $2 million (Challenger).
  • Previously it was $1.9 million (Heffron (superannuation advisory firm)).
  • Having a total super balance at or above $2 million generally prevents further non-concessional contributions (Australian Retirement Trust (ART, industry fund)).
Bottom line: The 2025-26 caps give you $30,000 (concessional) and $120,000 (non-concessional) per year, plus the option to use bring-forward or carry-forward rules. For workers near $1.76 million in total super balance, the bring-forward window shrinks – check your balance before contributing.

The catch: even a small misjudgment in total balance can lock you out of the full bring-forward benefit.

What happens if you go over the $30,000 cap?

Excess concessional contributions tax

  • Amounts over the $30,000 cap are included in your assessable income and taxed at your marginal rate, plus an excess concessional contributions charge of 2% per year (ATO).
  • A tax bill from an excess can be substantial – for a worker on the 37% marginal rate, the additional tax on $5,000 over the cap would be about $1,850 plus the charge.

Option to withdraw excess contributions

  • You can elect to release up to 85% of the excess amount from your super to help pay the tax (ATO).
  • The release is voluntary and must be requested within 60 days of the assessment notice.

Impact on non-concessional cap

  • Excess concessional contributions reduce your non-concessional cap for the same financial year (ATO).
  • This means you cannot simply “offset” the excess with after-tax money – the penalty cascades.
The catch

A $5,000 slip over the concessional cap can cost a mid-income earner nearly $2,000 in extra tax and reduce their non-concessional room. The system is designed to discourage even small errors.

The pattern: penalties compound quickly, so double‑check your contributions before the end of the financial year.

Will the concessional contributions cap increase in 2026?

Indexation mechanism

  • The caps are indexed in $5,000 increments based on growth in Average Weekly Ordinary Time Earnings (AWOTE) (Challenger).
  • If AWOTE growth triggers the threshold, the concessional cap could rise from $30,000 to $35,000 for 2026-27.

Forecast for 2026-27

  • Based on current wage projections, a rise to $35,000 is considered plausible but not guaranteed (Heffron).
  • The non-concessional cap would likely increase proportionally, possibly to $140,000 per year (or $420,000 under bring-forward).

Historical increases

  • The concessional cap was raised from $25,000 to $27,500 in 2017-18, then to $30,000 in 2021-22 (ATO).
  • No official announcement for 2026-27 is expected until mid-2026 when the ATO publishes the new figures.
Bottom line: A $35,000 concessional cap in 2026-27 is a realistic possibility, but it is not locked in. Workers planning large contributions should wait for the official ATO release, typically in May or June.

The implication: timing your contributions around indexation announcements can unlock extra room – but only if you stay patient.

Can I put $300,000 into my super?

Downsizer contributions for over-55s

  • Yes – a downsizer contribution allows up to $300,000 per person from the sale of your main residence, provided you are 55 years or older (age 60 from 1 January 2025) (ATO).
  • This does not count towards concessional or non-concessional caps (ATO).

Bring-forward rule for non-concessional contributions

  • Using the bring-forward rule, you can contribute up to $360,000 (three years’ worth of non-concessional cap) in a single year if your total super balance is under $1.76 million (Challenger).
  • If your balance is between $1.76 million and $1.88 million, only a two-year bring-forward of $240,000 is available (Heffron).

Third-party loans and other methods

  • Borrowing from a third party to contribute is possible, but the contribution still counts against your caps.
  • Total contributions cannot push your super balance above the transfer balance cap ($2 million from July 2025) to avoid penalties (Australian Retirement Trust (ART)).
How to combine them

A couple selling their home could each make a $300,000 downsizer contribution (tax-free, cap-free) and also use the bring-forward rule to add another $360,000 each – but only if their total super balances remain below the transfer balance cap.

What this means: strategic stacking of downsizer and bring‑forward contributions can significantly boost retirement savings without breaching caps.

What are the contribution limits for 2026?

Projected caps for 2026-27

  • No official limits have been announced yet. Based on indexation, the concessional cap could rise to $35,000 and the non-concessional cap could increase to $140,000 (Heffron).
  • The bring-forward amount would then be $420,000 over three years.

Comparison with 2025-26

Three caps, one pattern: the gap between 2025-26 and a potential 2026-27 increase is modest for the concessional limit but could open up more room for larger after-tax contributions.

Contribution type 2024-25 2025-26 2026-27 (projected)
Concessional $30,000 $30,000 $35,000
Non-concessional (annual) $120,000 $120,000 $140,000
Non-concessional (bring-forward 3yr) $360,000 $360,000 $420,000
General transfer balance cap $1.9M $2M $2M (indexed in future)
Downsizer contribution $300,000 $300,000 $300,000

Legislative timetable

  • The ATO publishes official contribution caps for the next financial year in May or June of the preceding year.
  • Any legislative changes must pass Parliament, so the 2026-27 caps will be confirmed well before 1 July 2026.
Bottom line: Workers who plan to use the full bring-forward rule should watch for the 2026-27 official announcement. If the caps rise, you may be able to contribute an extra $60,000 over three years without penalty.

The catch: acting on projections before official confirmation risks locking in contributions at lower caps.

Seven contribution types, each with its own rule set: the differences that matter most involve indexation trigger points and balance thresholds.

Contribution type Cap amount (2025-26) Indexation trigger Eligibility note
Concessional (before-tax) $30,000 AWOTE (in $5,000 increments) All ages, no work test required for those under 75
Non-concessional (after-tax) $120,000 AWOTE (in $5,000 increments) Must be under 75; total super balance under $1.76M for full bring-forward
Downsizer $300,000 per person Not indexed Age 55+ (60 from 1 Jan 2025); proceeds from sale of main residence
Bring-forward (non-concessional) Up to $360,000 (3yr) Linked to non-concessional cap Total super balance < $1.76M for full; $1.76M–$1.88M for two-year
Carry-forward unused concessional Up to $167,500 possible Unused from prior 5 years Total super balance < $500,000 at 30 June
Super guarantee (employer) 11.5% of ordinary earnings Legislated increase to 12% by 2025-26 All employees under age 75
Government co-contribution Up to $500 Income thresholds indexed annually Income < ~$58,445 (2025-26)

Timeline of key super contribution changes

  • – : Concessional cap $30,000; non-concessional cap $120,000; transfer balance cap $1.9 million (ATO).
  • : Downsizer eligibility age rises from 55 to 60 (ATO).
  • – : Concessional cap stays $30,000 (no indexation); non-concessional cap $120,000; transfer balance cap $2 million (Challenger).
  • : ATO announces caps for 2026-27; potential increase in concessional cap to $35,000 based on AWOTE (Heffron).

These changes highlight the importance of staying updated on indexation and age thresholds to avoid missing windows of opportunity.

Confirmed facts

  • Concessional cap for 2025-26 is $30,000 (ATO (federal revenue authority))
  • Non-concessional cap for 2025-26 is $120,000 (ATO)
  • General transfer balance cap from 1 July 2025 is $2 million (Challenger (financial services firm))
  • Downsizer contribution limit remains $300,000 (ATO)
  • Super guarantee rate for 2025-26 is 11.5% (ATO)

What’s unclear

  • Whether concessional cap will increase to $35,000 in 2026-27 – depends on AWOTE indexation (Heffron (superannuation advisory firm))
  • Exact timing of bring-forward rule eligibility changes (age limits under review)
  • Possible legislative amendments to contribution caps in the 2025-26 federal budget (Challenger)

Expert perspectives on contribution caps

“For 2025-26, the annual concessional contributions cap is $30,000 and the non-concessional contributions cap is $120,000. These amounts are indexed in line with AWOTE.”

Australian Taxation Office (federal revenue authority)

“The general transfer balance cap increased from $1.9 million to $2 million from 1 July 2025. This affects members with total super balances near this threshold, as it can limit further non-concessional contributions.”

Challenger (financial services firm)

“If eligible for bring-forward in 2025-26, a person can contribute up to $360,000 over three years. The full amount is only available if the total super balance is less than $1.76 million.”

MLC (wealth management provider)

The implication for Australian workers is clear: the contribution caps are generous but unforgiving. If your total super balance is approaching $1.76 million, the bring-forward rule may be limited, and exceeding caps triggers a tax bill at your marginal rate. For anyone planning to downsize or make a one-off large contribution, the wise move is to check your total super balance first, then decide. Those who act early avoid the penalty – those who delay risk losing thousands to the tax office.

Additional sources

legalsuper.com.au, primesuper.com.au

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Frequently asked questions

What is the difference between concessional and non-concessional contributions?

Concessional contributions are made before income tax (e.g., employer SG, salary sacrifice) and are taxed at 15% inside super. Non-concessional contributions are made with after-tax money and are not taxed inside super. The caps are $30,000 and $120,000 respectively for 2025-26.

Does the $30,000 concessional cap include employer mandatory contributions?

Yes, the cap includes all before-tax contributions: employer mandated SG (11.5% of earnings), salary sacrifice, and personal deductible contributions.

How can I check if I am close to exceeding the contribution cap?

Check your annual member statement or log in to the ATO’s myGov account to see your contribution balances. The ATO provides a running total for both concessional and non-concessional caps.

Can I contribute to super after age 75?

Yes, but with restrictions. From 75, you can only make mandated employer contributions (SG) and downsizer contributions, not voluntary personal contributions. Non-concessional contributions are generally not allowed after age 75.

What happens if I contribute more than the non-concessional cap?

Excess non-concessional contributions attract a penalty tax of 47.5% (top marginal rate) unless you withdraw the excess. You have 60 days to request a release from your fund to avoid the penalty.

Are there any special contributions for first home buyers?

Yes, the First Home Super Saver Scheme (FHSSS) allows voluntary concessional contributions up to $15,000 per year (max $50,000 total) to be withdrawn later for a first home deposit. These count toward your concessional cap.

How does the super guarantee rate affect contribution caps?

The SG rate (11.5% in 2025-26) is part of your concessional cap. As the rate rises to 12% by July 2026, your mandatory contributions will increase, leaving less room for voluntary salary sacrifice without exceeding the $30,000 cap.