Superannuation limits: what’s changing from 1 July 2026

From 1 July 2026, several key superannuation limits will increase due to indexation. These changes follow a period of stable limits in the 2025–26 financial year and may affect how much you can contribute and your eligibility for certain rules.

Below is a comparison of the current limits and what is changing.

Concessional contribution cap (before‑tax contributions)

Concessional contributions include employer Super Guarantee (SG), salary sacrifice, and personal contributions you claim as a tax deduction.

• 2025–26 financial year - $30,000 per year 

• From 1 July 2026 (2026–27): $32,500 per year 

What’s changed: 

• An increase of $2,500 per year. The higher cap also increases the amount available under the carry‑forward (catch‑up) rules, if eligible.

Non‑concessional contribution cap (after‑tax contributions)

Non‑concessional contributions are made from after‑tax income and are not taxed when entering super.

• 2025–26 financial year: $120,000 per year

• From 1 July 2026 (2026–27): $130,000 per year

What’s changed: 

• An increase of $10,000 per year. This cap is linked to the concessional cap (generally set at four times the concessional limit).

Bring‑forward contribution rules

The bring‑forward rule allows you to contribute up to three years of non‑concessional contributions in one year, depending on your total super balance.

• 2025–26 financial year limits: Up to $360,000 over three years

• From 1 July 2026 (2026–27): Up to $390,000 over three years 

What’s changed: 

• Higher contribution limits as a result of higher non-concessional contribution caps (above).

• Importantly, once you trigger a bring‑forward period, your limits remain tied to the rules at that time.

Transfer balance cap (retirement phase limit)

The transfer balance cap is the maximum amount you can move into a tax‑free retirement income stream.

• 2025–26 financial year: $2.0 million

• From 1 July 2026 (2026–27): $2.1 million

What’s changed: 

• An increase of $100,000, indexed to inflation (CPI).

• This change also increases the total super balance thresholds, which affect:

  • Eligibility for non‑concessional contributions

  • Bring‑forward access

  • Other contribution rules

Super Guarantee (SG)

The SG is the compulsory employer contribution rate. This remains at 12% with no further increases scheduled. The Superannuation Guarantee has now reached its legislated maximum.

Other relevant thresholds

A number of additional limits and rules are also updated from 1 July 2026:

• Total super balance cap: increases to $2.1 million (linked to the transfer balance cap)

• Division 293 tax threshold: remains at $250,000 

Division 296 tax (new from 1 July 2026)

From 1 July 2026, a new tax framework—known as Division 296—applies to individuals with higher superannuation balances.

• Applies where your total super balance exceeds $3 million 

• Introduces an additional 15% tax on earnings attributable to the portion of your balance above this threshold

• For balances above $10 million, an additional 10% tax (on top of the 15%) applies to that portion of earnings 

In simple terms:

• Earnings on amounts below $3 million continue to be taxed under existing super rules

• Earnings on amounts between $3 million and $10 million may face up to 30% total tax (including existing tax)

• Earnings on amounts above $10 million may face up to 40% total tax.

Additional points:

• The tax is assessed personally by the ATO, not paid directly by your super fund

• It applies only to the portion of earnings linked to balances above the thresholds, not your entire account

• The thresholds are indexed over time in line with inflation

Key Summary

From 1 July 2026, indexation increases most major limits, including:

• Higher annual contribution caps

• Expanded bring‑forward opportunities

• A higher transfer balance cap and related thresholds

• The introduction of Division 296, which applies additional tax to very large super balances

While the increases are modest for most people, the changes may improve flexibility around contributions and highlight how superannuation rules continue to evolve over time.

If you have any queries about how the changes to contribution limits impact your position and strategies, please don't hesitate to contact us.