Superannuation Changes – Effective 1 July 2026 (FY26–27)

Starting 1 July 2026, several important superannuation thresholds are set to rise, offering significant planning opportunities for individuals, business owners, and those nearing retirement.

Although the Australian Taxation Office (ATO) has yet to officially confirm the final figures, projected indexation based on AWOTE and CPI data, in line with Subdivision 960-M of the ITAA 1997, provides a clear outlook for the 2026-27 financial year.

The concessional contributions cap will increase from $30,000 to $32,500. The non-concessional contributions cap will rise from $120,000 to $130,000 per annum. As a result, the maximum bring-forward contribution will increase to $390,000 over three years, subject to total superannuation balance (TSB) thresholds.

The TSB limit linked to eligibility for non-concessional contributions will increase to $2.1 million (up from $2.0 million), reflecting the rise in the general transfer balance cap.

The general transfer balance cap will increase from $2.0 million to $2.1 million from 1 July 2026. This impacts the maximum amount that can be transferred into the retirement phase and will also affect bring-forward contribution thresholds.

While the SG rate remains at 12%, a significant administrative change applies from 1 July 2026. The maximum contribution base will shift from a quarterly cap ($62,500 per quarter in 2025–26) to an annual cap of $270,830. This reflects a revised legislative calculation aligned with the concessional contributions cap. Read more about the Payday Super legislation.

Several additional thresholds will increase, including:

The Division 293 tax threshold ($250,000) and downsizer contribution limit ($300,000) remain unchanged.

These upcoming adjustments represent a timely opportunity to review your superannuation strategy — particularly for those planning large one-off contributions, approaching retirement, or managing a business succession or exit.

Assessing your contribution plans and total superannuation balance well before 30 June 2026 will help ensure you are positioned to take full advantage of the new limits once they take effect.

If you require clarification on any of the above or would like to receive further advice, please reach out online or call us at 02 8226 1655.

Important Information – General Advice Disclaimer:

The information provided in this communication is general in nature and does not take into account your personal objectives, financial situation, or needs. Before acting on any information, you should consider its appropriateness in relation to your own circumstances and seek independent financial advice where necessary. We recommend consulting a licensed financial adviser before making any investment or financial decisions. Past performance is not a reliable indicator of future performance.