The Australian government limits how much you can contribute to superannuation each financial year. These limits — called contribution caps — apply to both pre-tax (concessional) and after-tax (non-concessional) contributions. Exceeding the caps results in additional tax. Understanding the limits is essential for anyone making voluntary super contributions.
Concessional Contribution Cap — FY2025–26
| Amount | |
|---|---|
| Annual concessional cap | $30,000 |
| Employer Super Guarantee (11.5%) | Counts toward the cap |
| Salary sacrifice contributions | Counts toward the cap |
| Personal deductible contributions | Counts toward the cap |
What are concessional contributions? Concessional (before-tax) contributions are contributions made from pre-tax income and taxed at 15% inside super. They include:
- Employer Super Guarantee contributions (11.5% in FY2024–25)
- Salary sacrifice contributions
- Personal contributions claimed as a tax deduction (under s290-180 ITAA 1997)
Exceeding the concessional cap: Excess concessional contributions are included in your assessable income and taxed at your marginal tax rate — minus a 15% offset (to account for the tax already paid by the fund). You may elect to withdraw the excess.
Non-Concessional Contribution Cap — FY2025–26
| Amount | |
|---|---|
| Annual non-concessional cap | $120,000 |
| 3-year bring-forward rule | Up to $360,000 in a single year |
What are non-concessional contributions? Non-concessional (after-tax) contributions are made from money on which you have already paid income tax. They are not taxed on entry to the fund (no 15% contributions tax applies). They include:
- Personal contributions not claimed as a tax deduction
- Spouse contributions
- Certain re-contributions of previously withdrawn super
Exceeding the non-concessional cap: Excess non-concessional contributions are taxed at the highest marginal rate (45%) plus Medicare levy — effectively the harshest tax outcome in super. Always monitor your non-concessional contributions closely.
The Bring-Forward Rule
If you are under 75, you can bring forward up to three years of non-concessional cap contributions in a single year — contributing up to $360,000 in one financial year. This is useful for:
- Making a large after-tax contribution (e.g., from an inheritance, bonus, or property sale proceeds)
- Accelerating super balance growth before retirement
The bring-forward rule is triggered automatically when your non-concessional contributions exceed the annual $120,000 cap. Once triggered, you have a 3-year window for that total.
Total Super Balance Limits on Non-Concessional Contributions
Your Total Superannuation Balance (TSB) as at 30 June of the prior year determines your non-concessional cap eligibility:
| TSB at 30 June prior year | Non-concessional cap |
|---|---|
| Less than $1.68 million | Full $120,000 cap (bring-forward available) |
| $1.68 million – $1.79 million | $80,000 (2-year bring-forward) |
| $1.79 million – $1.90 million | $40,000 (1-year cap only) |
| $1.90 million or more | Nil — no non-concessional contributions permitted |
The Division 293 Tax — High-Income Earners
High-income earners (income + concessional contributions > $250,000) pay an additional 15% tax on concessional contributions, known as Division 293 tax. This brings the effective tax rate on concessional contributions to 30% — still typically below the top marginal rate of 47%.
Contribution Caps Summary Table
| Contribution type | FY2025–26 cap | Tax on entry |
|---|---|---|
| Concessional (before-tax) | $30,000 | 15% (30% for Div 293 earners) |
| Non-concessional (after-tax) | $120,000 ($360,000 bring-forward) | Nil |
Related Articles
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- Non-Concessional Contributions Australia
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- Salary Sacrifice Super Australia
- Retirement Investing hub
Frequently Asked Questions
Do employer Super Guarantee contributions count toward my concessional cap? Yes. Employer SG contributions count toward the $30,000 concessional cap. If your employer contributes $12,000 per year, you have $18,000 of remaining concessional cap for salary sacrifice or personal deductible contributions.
What happens if I exceed the concessional cap? Excess concessional contributions are added to your assessable income and taxed at your marginal rate, with a 15% offset. You receive an excess concessional contributions determination from the ATO. You can elect to withdraw the excess from super.
Can I contribute to super after age 75? From age 75, you can no longer make voluntary contributions — only mandated employer contributions (if still employed) can be made. Non-concessional contributions must cease by the day before you turn 75.
This article provides general financial information only. Contribution caps are indexed and change periodically. Always verify current caps on the ATO website. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.