Superannuation Changes From 1 July 2026: What To Review Now

Published 27/07/2026 
By Daniel McLean, Authorised Financial Adviser

From 1 July 2026, updated superannuation caps and thresholds may affect how much some Australians can contribute to super, how the bring-forward rules apply, and how much can be moved into the tax-free retirement phase.

This article explains what changed for the 2026–27 financial year, who may be affected, and what to review before making new contribution or retirement planning decisions.

Quick Navigation:

• Key Superannuation Changes At a Glance
• Concessional Contribution Cap Increases To $32,500
• Non-Concessional Contribution Cap Increases To $130,000
• Bring-Forward Limit Increases To $390,000
• Transfer Balance Cap Increases To $2.1 Million
• Total Super Balance Threshold Increases To $2.1 Million
• Superannuation Guarantee Remains At 12%
• What Should You Review Now?
• Frequently Asked Questions

From 1 July 2026, several key superannuation thresholds increased, creating new planning opportunities for Australians who are building retirement savings, preparing to retire, or considering how to make better use of surplus cash.

The higher concessional and non-concessional contribution caps may allow some people to contribute more to super in a tax-effective way. The increased bring-forward limit may also be useful for eligible individuals who have received an inheritance, sold an asset, or accumulated savings outside super.

However, these changes do not mean everyone should simply contribute more. Your available caps, Total Super Balance, cashflow, tax position, retirement timeframe, and existing contribution history should all be reviewed with your Financial Advisor before making any changes.

Key Superannuation Changes At a Glance

The following changes apply for the 2026–27 financial year. 

These changes are especially worth reviewing as part of a broader superannuation advice and retirement planning conversation, rather than as isolated contribution cap updates.

These increases may be particularly relevant for people approaching retirement, receiving an inheritance, selling an investment or business, returning to work, or looking to make better use of surplus cash.

While the higher caps create more flexibility, they should be reviewed in the context of your broader financial plan, including your cashflow, tax position, Total Super Balance, and retirement goals.

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Concessional Contribution Cap Increases to $32,500

From 1 July 2026, the annual concessional contribution cap increased from $30,000 to $32,500.

Concessional contributions are generally made from pre-tax income or claimed as a personal tax deduction. They include:

• Employer Superannuation Guarantee contributions
• Salary sacrifice contributions
• Personal contributions for which you claim a tax deduction
• Certain other employer contributions
   

These contributions are generally taxed at 15% within your super fund, although additional tax may apply to higher-income earners.

The higher cap may provide an opportunity to direct an additional $2,500 into super on a concessionally taxed basis. Before increasing a salary sacrifice arrangement or making a deductible contribution, it is important to remember that employer contributions count towards the same cap.

This means your available cap space may be lower than the headline $32,500 figure, especially if your salary has increased, you receive bonuses, or your employer makes additional contributions.

Some people may also be eligible to use unused concessional cap amounts carried forward from the previous five financial years. This generally requires a Total Super Balance of less than $500,000 at the previous 30 June.
 

"Before making additional super contributions, it's important to understand exactly how much contribution cap space you have available. In many cases, this information can be accessed through your myGov account linked to the ATO, or obtained from your accountant or tax agent.

Taking a few minutes to confirm your available caps can help avoid unintended excess contribution issues and ensure you're making the most of the opportunities available under the current rules."

- Daniel McLean, Authorised Financial Adviser

Non-Concessional Contribution Cap Increases to $130,000

The annual non-concessional contribution cap increased from $120,000 to $130,000 on 1 July 2026.

Non-concessional contributions are generally made using money on which you have already paid tax. Because no tax deduction is claimed, these contributions are usually not taxed when they enter your super fund.

The higher cap may help eligible individuals move more personal savings into super. This could be relevant if you:

• Hold significant cash outside super
• Have received an inheritance
• Have sold an investment property or another asset
• Are preparing for retirement
• Want to contribute proceeds from downsizing or a business sale
• Have withdrawn money from super previously and now wish to recontribute it

For eligible individuals, the higher annual cap may also increase the amount available under the bring-forward rules. This can be useful where a larger sum becomes available at once, but the timing and amount of any contribution should be checked carefully.

Eligibility depends on several factors, including your age, Total Super Balance, and whether you have already triggered a bring-forward arrangement. Making contributions above your available cap can result in additional tax and administrative consequences.

Bring-Forward Limit Increases to $390,000

Eligible individuals may be able to bring forward up to three years of non-concessional contribution caps.

Following the increase in the annual cap, the maximum bring-forward amount has risen from $360,000 to $390,000.

The amount available during 2026–27 depends on your Total Super Balance at 30 June 2026:

If you triggered a bring-forward arrangement in an earlier financial year, your remaining cap may not simply reset to the new $390,000 maximum. The rules applying to an arrangement already in progress should be checked before making another contribution.

The bring-forward rules can be particularly useful where a large amount becomes available at once. It's important to note that contributing a substantial sum to super can affect your access to that money, estate planning, Age Pension position, and future contribution flexibility.

Larger contribution decisions should also be considered alongside retirement income needs, cashflow, and living costs. You may also find our guide to managing rising retirement costs in 2026 helpful.

Transfer Balance Cap Increases to $2.1 Million

The Transfer Balance Cap limits how much superannuation can be transferred into retirement-phase income streams, where investment earnings are generally tax-free.

For someone starting their first retirement-phase income stream on or after 1 July 2026, their personal Transfer Balance Cap may be $2.1 million.

For people who already had a retirement-phase income stream before that date, the position can be more complex. They may receive only proportional indexation, meaning their personal cap may increase by less than $100,000. In some cases, it may not increase at all if they have already used 100% of their available cap.

This means the new $2.1 million general cap should not automatically be treated as your personal Transfer Balance Cap. Your individual position can generally be checked through ATO online services or reviewed with your financial advisor.

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Total Super Balance Threshold Increases to $2.1 Million

The Total Super Balance threshold affecting eligibility for non-concessional contributions has also increased from $2 million to $2.1 million.

Your Total Super Balance is generally measured at 30 June of the previous financial year. It includes most of your superannuation interests and may be different from the balance shown in a single super account.

For the 2026–27 financial year, if your Total Super Balance was $2.1 million or more at 30 June 2026, your non-concessional contribution cap is generally nil.

A balance below $2.1 million does not automatically mean you can contribute the full $390,000 under the bring-forward rules. Lower Total Super Balance thresholds also apply, which can reduce the amount you are eligible to contribute.

This is also different from the Transfer Balance Cap. The Transfer Balance Cap affects how much can be transferred into retirement-phase income streams, while your Total Super Balance helps determine your eligibility to make certain contributions. Both figures can be important, but they are used for different rules.
 

Superannuation Guarantee Remains at 12%

The Superannuation Guarantee rate remains at 12% for the 2026–27 financial year.

For employees, compulsory employer contributions count towards the $32,500 concessional contribution cap. If your salary increases, your employer contributions may also increase, which can reduce the amount of cap space available for salary sacrifice or personal deductible contributions.

From 1 July 2026, Payday Super changes also affect when employers are required to pay employees’ superannuation contributions. We explain those employer obligations in more detail in our separate guide to Payday Super.

What Should You Review Now?

The start of the financial year is an ideal time to review how the new thresholds affect your broader financial plan.

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Check Your Contributions To Date

Confirm how much your employer is contributing and whether you have existing salary sacrifice arrangements in place. Allow for timing differences between payroll records and amounts received by your super fund.

Review Your Salary Sacrifice Arrangement

A higher concessional cap may create room to increase salary sacrifice contributions, but the appropriate amount will depend on your income, cashflow, tax position, and employer contributions.

Confirm Your Total Super Balance

Your Total Super Balance at 30 June 2026 helps determine whether you can make non-concessional contributions and how much of the bring-forward arrangement may be available.

Check Your Personal Transfer Balance Cap

If you have already commenced a retirement-phase income stream, do not assume your personal cap has automatically increased to $2.1 million. Proportional indexation may apply.

Consider Contributions As Part of Your Retirement Strategy

Contribution decisions should be coordinated with your retirement timeframe, investment strategy, access to cash, tax planning, Centrelink position, and estate planning.

Superannuation can offer significant tax advantages, but money contributed may remain preserved until you satisfy a condition of release. Maintaining enough accessible savings outside super can be just as important.