Concessional vs Non-Concessional Contributions: 2026–27 Super Caps Explained
Reviewed by Sash Denkovski, Principal Accountant & Registered Tax Agent, Adenix Accounting. Last updated: September 2026
For the 2026–27 financial year, the concessional contributions cap is $32,500, and the non-concessional contributions cap is $130,000. Concessional contributions usually include employer super, salary sacrifice and personal contributions claimed as a tax deduction. Non-concessional contributions are generally made from money you have already paid tax on. Depending on your circumstances, you may also be able to use unused concessional caps from earlier years or contribute up to $390,000 under the non-concessional bring-forward rules.
That sounds straightforward until you actually try to work out how much you can put into super.
One of the most common mistakes is looking at the annual cap and forgetting that employer super has already used part of it. Another is assuming that everyone can automatically contribute $390,000 after tax.
Here is how concessional vs non-concessional contributions 2026–27 work in practice.
2026–27 Super Contribution Caps at a Glance
Contribution | 2026–27 limit |
Concessional contributions | $32,500 |
Non-concessional contributions | $130,000 |
Maximum non-concessional bring-forward | Up to $390,000 |
Carry-forward concessional contributions | Unused cap amounts from the previous 5 years, subject to eligibility |
Employer Super Guarantee contributions, salary sacrifice and deductible personal super contributions can all count towards the same $32,500 concessional cap.
That is the first number worth checking before making an extra contribution.
What Are Concessional Super Contributions?
Concessional contributions are contributions to super that receive concessional tax treatment.
They can include employer Super Guarantee payments, salary sacrifice contributions and personal contributions that you claim as a tax deduction.
For 2026–27, the standard cap is $32,500. Most concessional contributions are taxed at 15% inside the super fund, although higher-income earners may face additional tax.
Concessional vs Non-Concessional Contributions 2026–27 Explained
Suppose your employer contributes $15,000 to your super during the year.
You do not then have another $32,500 available under the standard concessional cap.
You have already used $15,000 of it.
Ignoring any available carry-forward amounts and other contributions, you would have approximately $17,500 remaining.
This matters if you are thinking about salary sacrifice or making a personal contribution before the end of the financial year.
For Sydney business owners, super contributions can also form part of broader small business tax planning in Sydney.
What Are Non-Concessional Contributions?
Non-concessional contributions work differently.
These are generally personal contributions made from money on which you have already paid tax. Because you are not claiming a deduction for them, they usually do not attract the standard 15% contributions tax when they enter your super fund.
The annual non-concessional cap for 2026–27 is $130,000.
Think of it this way:
Concessional = generally before-tax or tax-deductible money.
Non-concessional = generally after-tax money for which you are not claiming a deduction.
The important part is that the way you treat a personal contribution can actually change which cap applies.
Can the Same Personal Contribution Be Concessional or Non-Concessional?
Potentially, yes — and this is one of the areas that causes the most confusion.
Imagine you transfer $10,000 from your personal bank account into your super fund.
If you leave it as an after-tax contribution and do not claim a tax deduction, it would generally count towards your non-concessional cap.
But if you meet the relevant requirements, submit a valid Notice of Intent to your super fund and claim the $10,000 as a personal tax deduction, it generally becomes a concessional contribution instead.
Same money. Different tax treatment. Different contribution cap.
The ATO explains the requirements around personal super contributions and claiming a deduction in more detail.
This is why it is worth deciding how you intend to treat the contribution before simply transferring money into super.
Can You Contribute More Than $32,500 to Super in 2026–27?
Yes, some people can.
The $32,500 figure is the standard annual concessional cap, but eligible people can use the carry-forward rules to access unused concessional cap amounts from previous financial years.
You may be able to use unused amounts from up to the previous five financial years if your total super balance was less than $500,000 at 30 June immediately before the financial year in which you want to use them. Unused amounts expire after five years.
For example, imagine you used only $18,000 of your available concessional cap in an earlier year.
The unused portion does not necessarily disappear immediately.
If you meet the carry-forward requirements, some of that unused cap may still be available when you want to make a larger concessional contribution later.
This can become particularly relevant if your income changes significantly from year to year, you have returned to work after time away, you run a business with fluctuating profits or you have a year in which a larger deductible contribution makes sense.
The easiest starting point is to check your available unused cap through ATO online services rather than trying to reconstruct five years of contributions yourself.
The ATO provides detailed information on carry-forward unused concessional contributions.
A Practical Carry-Forward Example
Consider a Sydney business owner who has had several quieter years and contributed well below the concessional cap.
The business then has a much stronger year.
Looking only at the current $32,500 cap could suggest there is no room to make a larger deductible super contribution.
But if the owner's total super balance meets the eligibility requirement and there are unused cap amounts available from previous years, the actual concessional contribution limit for that year may be higher.
That does not automatically mean making the maximum possible contribution is the right decision. Cash flow, taxable income, access to money and longer-term retirement plans still need to be considered.
But it shows why checking the available cap, rather than simply knowing the standard cap, matters.
Can You Put $390,000 Into Super in 2026–27?
This is another question where the answer is yes, potentially, but not for everyone.
The non-concessional bring-forward rule can allow an eligible person to use up to three years of non-concessional caps.
With the annual cap now at $130,000:
$130,000 × 3 = $390,000.
But the amount available depends on your total super balance at 30 June 2026.
Total super balance at 30 June 2026 | Maximum 2026–27 non-concessional cap |
Less than $1.84 million | $390,000 |
$1.84 million to less than $1.97 million | $260,000 |
$1.97 million to less than $2.1 million | $130,000 |
$2.1 million or more | Nil |
These thresholds apply when starting a new bring-forward arrangement in 2026–27. If you have already triggered a bring-forward arrangement in an earlier financial year, your available amount may be different.
That last point is important.
Someone might hear that the new maximum is $390,000 and assume they can simply transfer that amount into super. But your existing super balance, age, previous contributions and any bring-forward arrangement already in progress can change the result.
Example: Using the $390,000 Bring-Forward Rule
Imagine someone aged 58 has a total super balance of $900,000 at 30 June 2026 and has not already triggered a bring-forward arrangement.
They sell an investment and decide they want to move some of the proceeds into super.
Because their balance is below $1.84 million, they may be able to access the three-year bring-forward cap and contribute up to $390,000 in non-concessional contributions, subject to satisfying the other rules.
They do not necessarily have to contribute the full $390,000 immediately. The bring-forward arrangement determines the amount available across the relevant period.
This is the type of contribution where checking the rules before the transfer is made is far easier than trying to fix a problem afterwards.
Does Employer Super Count Towards the $32,500 Cap?
Yes.
Your employer's compulsory super contributions count towards your concessional contributions cap.
For 2026–27, the Super Guarantee rate is 12%, so for many employees a meaningful portion of the $32,500 cap will already be used through ordinary employer contributions.
Salary sacrifice does not sit in a separate bucket.
Neither do personal super contributions that you later claim as a tax deduction.
They can all contribute towards the same concessional cap.
For example, if your employer contributes $18,000 and you salary sacrifice another $10,000, you have already reached $28,000 before considering any other concessional contributions.
That leaves only $4,500 of the standard cap, unless you are eligible to use unused amounts from earlier years.
Are Personal Super Contributions Tax Deductible?
They can be.
If you make an eligible personal contribution and want to claim it as a tax deduction, you generally need to give your super fund a valid Notice of Intent to Claim a Personal Super Contribution Deduction and receive acknowledgement from the fund.
There are timing rules and eligibility requirements, so putting money into super does not automatically create a deduction.
Once the contribution is validly claimed as a deduction, it generally counts towards your concessional contributions cap.
If you are already preparing your personal tax return or reviewing your deductions, our individual tax return and personal tax services in Sydney explain how Adenix assists individuals with more complex tax situations.
Which Is Better: Concessional or Non-Concessional Contributions?
There is no single answer because they do different jobs.
For someone paying tax at a marginal rate above the standard super contributions tax rate, concessional contributions may be worth looking at first because salary sacrifice or deductible personal contributions can provide a tax benefit.
But that does not automatically make concessional contributions the better option for everyone.
Someone who has already used their concessional cap but has substantial after-tax savings may be more interested in non-concessional contributions.
Someone selling an investment before retirement might be considering the bring-forward rules.
A business owner may be more focused on taxable income and cash flow.
And someone who will need access to the money in the near future may decide that putting additional money into super is not appropriate at all.
Super is generally preserved until a condition of release is met, so the tax treatment should never be the only part of the decision.
MoneySmart provides a useful overview of before-tax and after-tax super contributions and the current contribution limits.
What Happens if You Go Over a Super Contribution Cap?
Going over a contribution cap does not simply mean the excess amount is ignored.
The tax treatment depends on whether the excess relates to concessional or non-concessional contributions and what action is subsequently taken.
Excess concessional contributions can be included in your assessable income, with adjustments for tax already paid within super.
Excess non-concessional contributions can lead to an ATO determination and may require amounts to be released from super.
This is why we recommend checking the numbers across all your super funds before making a large contribution.
If you have two funds, you do not receive two separate $32,500 concessional caps.
The cap applies to you, not to each super account.
What About SMSFs?
Having a self-managed super fund does not give you a separate or higher contribution cap.
The same contribution rules still need to be considered.
Where SMSFs can become more complicated is in correctly recording the contribution, reporting it, and ensuring the fund's records match how the member intends to treat the payment.
A contribution recorded incorrectly as concessional or non-concessional can create unnecessary problems later.
Adenix provides SMSF accounting and compliance services in Sydney for trustees who need help keeping their fund's accounting, reporting and compliance requirements in order.
Super Contribution Advice in Sydney, Rockdale, Kogarah and Hurstville
Super contributions often make the most sense when they are considered alongside your wider tax position rather than as an isolated decision.
At Adenix Accounting, we work with individuals, business owners and SMSF trustees across Sydney and the St George area, including Rockdale, Kogarah, Hurstville, Brighton-Le-Sands and Wolli Creek.
Before making a significant super contribution in 2026–27, check four things: how much has already gone into your super since 1 July 2026, how much unused concessional cap you may still have available from previous years, your total super balance at 30 June 2026, and whether the new contribution will be treated as concessional or non-concessional for tax purposes.
Frequently Asked Questions
What is the concessional contribution cap for 2026–27?
The concessional contributions cap for the 2026–27 financial year is $32,500. Employer super, salary sacrifice and personal contributions claimed as a deduction can all count towards this cap.
What is the non-concessional contribution cap for 2026–27?
The standard non-concessional contributions cap for 2026–27 is $130,000. These are generally after-tax contributions for which you do not claim a personal tax deduction.
Can I contribute more than $32,500 to super?
Potentially. If your total super balance was below $500,000 at the previous 30 June and you have unused concessional cap amounts from the previous five financial years, the carry-forward rules may allow you to contribute more than the standard annual cap.
Can I contribute $390,000 to super in 2026–27?
Some people can. If you are eligible for the bring-forward rules and your total super balance at 30 June 2026 was below $1.84 million, you may be able to access a non-concessional cap of up to $390,000 over the three-year bring-forward period.
Does employer super count towards the $32,500 concessional cap?
Yes. Employer Super Guarantee contributions count towards your concessional cap, together with salary sacrifice and deductible personal contributions.
What is the difference between carry-forward and bring-forward?
Carry-forward lets eligible people use unused concessional contribution cap amounts from previous years.
Bring-forward allows eligible people to access future non-concessional caps earlier, potentially giving them a larger after-tax contribution limit.
Do the contribution caps apply separately to each super fund?
No. The contribution caps apply to your total contributions across your super funds, not separately to every account you hold.
Not Sure How Much You Can Contribute?
Before making a large super contribution, it is worth checking your available cap first.
Adenix Accounting can help you review your 2026–27 concessional and non-concessional contribution limits, unused carry-forward amounts and your current tax position before you contribute.
Need help working out your available super contribution cap? Contact Adenix Accounting today.
Important: This article provides general information only. It does not take into account your objectives, financial situation or needs and should not be treated as personal financial advice. Superannuation and tax rules can change, and eligibility for contribution concessions depends on individual circumstances.
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