Key Superannuation Caps for the 2026/27 Financial Year
As we enter the 2026/27 financial year, several important superannuation thresholds have increased, creating additional opportunities for Australians to build retirement wealth in a tax-effective manner.
Understanding these limits is an important part of effective retirement planning. Whether you are looking to maximise employer and personal contributions, contribute proceeds from the sale of a business, or commence a retirement income stream, being aware of the current caps can help you make informed decisions and avoid unintended tax consequences.
Below is an overview of the key superannuation caps and thresholds for the 2026/27 financial year.
Concessional Contributions Cap – $32,500
Concessional contributions are generally contributions made to superannuation from pre-tax income. These include:
Employer Superannuation Guarantee (SG) contributions
Salary sacrifice contributions
Personal contributions for which a tax deduction is claimed
The concessional contributions cap for the 2026/27 financial year is $32,500, an increase from $30,000 in the previous financial year.
Careful monitoring of total concessional contributions is important, particularly for individuals receiving substantial employer contributions or making salary sacrifice arrangements.
Non-Concessional Contributions Cap – $130,000
Non-concessional contributions are personal contributions made from after-tax income where no tax deduction is claimed.
The annual non-concessional contributions cap for the 2026/27 financial year is $130,000, up from $120,000 in the previous year.
These contributions can be a valuable strategy for individuals seeking to increase their retirement savings using personal funds.
Bring-Forward Rule – Up to $390,000
Eligible individuals may be able to bring forward up to two future years of non-concessional contribution caps, allowing a larger contribution to be made in a shorter period.
Subject to age requirements and available transfer balance cap space, the maximum contribution under the bring-forward provisions is $390,000 over a period of up to three financial years.
This strategy can be particularly useful following the receipt of an inheritance, business sale proceeds, or other significant capital events.
Small Business CGT Contributions Cap – $1,935,000
Individuals who qualify for certain small business Capital Gains Tax (CGT) concessions may be able to contribute proceeds from the sale of eligible business assets directly into superannuation.
The lifetime CGT cap for the 2026/27 financial year is $1,935,000.
Importantly, contributions made under the small business CGT concessions do not count towards the standard non-concessional contribution caps and can provide a significant opportunity to strengthen retirement savings following a business sale.
General Transfer Balance Cap – $2,100,000
The Transfer Balance Cap limits the amount of superannuation that can be transferred into the tax-free retirement pension phase.
For the 2026/27 financial year, the General Transfer Balance Cap increases to $2,100,000.
While the cap limits the amount that can initially be transferred into pension phase, investment earnings and growth on pension assets can continue to accumulate without affecting the cap.
Individuals who have previously commenced retirement income streams may be entitled to a proportional increase rather than the full indexed amount, depending on their personal circumstances.
Downsizer Contributions – $300,000
The Downsizer Contribution scheme continues to provide an opportunity for eligible Australians aged 55 and over to contribute proceeds from the sale of their home into superannuation.
Key features include:
Maximum contribution of $300,000 per person
Does not count towards non-concessional contribution caps
No requirement to satisfy a work test
Property must generally have been owned for at least 10 years
Contribution must generally be made within 90 days of settlement
The downsizer contribution cap remains unchanged at $300,000.
Planning Ahead
Superannuation remains one of the most tax-effective structures available for building long-term wealth and funding retirement.
With several contribution caps increasing for the 2026/27 financial year, now may be an appropriate time to review your contribution strategy and ensure you are making the most of the opportunities available within the superannuation system.
As contribution eligibility and cap limits can vary based on individual circumstances, professional advice should be sought before implementing any strategy.
How ODV Private Wealth Can Help
Navigating superannuation contribution caps and retirement planning strategies can be complex, particularly when considering eligibility requirements, taxation implications, and long-term wealth objectives.
At ODV Private Wealth, we work closely with clients to develop tailored strategies that maximise available opportunities while ensuring compliance with superannuation legislation.
For further information, or to book an appointment to discuss your superannuation and retirement planning needs, call ODV Private Wealth on (08) 8352 2522 or email planning@odvwealth.com.au.
General Advice DisclaimerThe information on this website is general in nature and does not take into account your personal objectives, financial situation, or needs. You should consider whether the information is appropriate for you and read the relevant Product Disclosure Statement (PDS) before making any investment decision. ODV Private Wealth Pty Ltd ABN 28 679 606 583 | Corporate Authorised Representative (No. 001313599) of Humble Goode Financial Pty Ltd AFSL 349026.