2026–27 Super Contribution Caps and Thresholds
Understanding the latest superannuation contribution limits is important for both employers and business owners. The 2026–27 financial year introduces updated thresholds that may affect payroll obligations, tax planning, and retirement strategies.
At Gavin Ma & Co, we assist businesses and individuals in managing superannuation compliance while maximising tax-effective opportunities.
Employer Superannuation Guarantee
Employers must contribute superannuation for eligible employees under the Superannuation Guarantee (SG) system.
For the 2026–27 financial year, the SG rate remains 12% of ordinary time earnings. The maximum contribution base is $270,830 per employee per year, meaning employers are not required to pay SG on earnings above this threshold. The maximum SG contribution per employee is $32,499.60 annually.
Understanding these limits is particularly important for businesses employing senior staff or high-income professionals.
Concessional Contribution Cap
The concessional contribution cap increases to $32,500 per year in 2026–27. These are contributions made from pre-tax income and include employer SG contributions, salary sacrifice arrangements, and personal deductible contributions.
For business owners and company directors, concessional contributions are often used as part of a broader tax planning strategy to reduce taxable income while increasing retirement savings.
Non-Concessional Contributions
The non-concessional (after-tax) contribution cap increases to $130,000 per year. Eligibility depends on an individual’s total superannuation balance (TSB) as at 30 June 2026.
Individuals with a total super balance of $2.1 million or more cannot make non-concessional contributions.
Bring-Forward Contribution Rule
Individuals under age 75 may bring forward up to three years of non-concessional contributions depending on their total super balance.
If the balance is less than $1.84 million, up to $390,000 may be contributed over three years. If the balance is between $1.84 million and $1.97 million, the maximum contribution is $260,000 over two years. Individuals with balances between $1.97 million and $2.1 million can only contribute the standard $130,000 annual cap.
Transfer Balance Cap
From 1 July 2026, the general transfer balance cap increases to $2.1 million. This cap limits the amount that can be transferred into the tax-free retirement phase of superannuation.
The transfer balance cap also affects eligibility for making non-concessional contributions.
Division 293 Tax
High-income earners may be subject to additional tax on concessional contributions. For 2026–27, the Division 293 threshold remains $250,000. Individuals whose income exceeds this level may pay an additional 15% tax on concessional contributions.
CGT Cap and Downsizer Contributions
Eligible small business owners may contribute up to $1.935 million under the CGT retirement exemption cap when selling qualifying business assets.
Downsizer contributions remain unchanged at $300,000 per person, allowing eligible individuals to contribute proceeds from the sale of their home into superannuation.
How Gavin Ma & Co Can Help
Superannuation rules continue to evolve and can present both compliance obligations and planning opportunities. Gavin Ma & Co assists businesses and individuals with super contribution strategies, employer compliance, SMSF advice, and tax planning.
If you would like guidance on superannuation strategies for the 2026–27 financial year, our team would be happy to assist.