2026–27 Superannuation Rates and Thresholds

The 2026–27 financial year brings several important changes to Australia’s superannuation system. These updated caps and thresholds affect how much you can contribute, how pensions are managed, and whether additional tax may apply. Understanding these limits is essential for effective retirement planning and compliance.

This guide outlines the key superannuation rates and thresholds for 2026–27, all in one place.

Concessional Contributions Cap (2026–27)

The concessional contributions cap has increased for the 2026–27 financial year.

• Annual concessional contributions cap: $32,500

This cap includes employer Superannuation Guarantee (SG) contributions, salary sacrifice, and personal deductible contributions. Exceeding the cap may result in additional tax.

Superannuation Guarantee (SG) – 2026–27

From 1 July 2026, the Superannuation Guarantee rules are fully aligned with the new annual maximum contribution base.

• SG rate: 12.0%
• Maximum contribution base (annual): $270,830
• Maximum SG contribution per employee: $32,499.60 per year

Employers are not required to make SG contributions on earnings above the maximum contribution base.

Non-Concessional Contributions Cap (2026–27)

Non-concessional (after-tax) contributions are also indexed.

• Standard non-concessional contributions cap: $130,000 per year

Eligibility to make non-concessional contributions depends on your total superannuation balance (TSB) as at 30 June 2026.

Bring-Forward Rule Thresholds (2026–27)

For individuals under age 75, the bring-forward rule allows up to three years of non-concessional contributions in advance, depending on TSB.

• TSB less than $1.84 million
– Bring-forward cap: $390,000 over three years

• TSB $1.84 million to less than $1.97 million
– Bring-forward cap: $260,000 over two years

• TSB $1.97 million to less than $2.1 million
– No bring-forward, annual cap $130,000

• TSB $2.1 million or more
– Non-concessional contributions not permitted

Transfer Balance Cap (2026–27)

The general transfer balance cap increases on 1 July 2026.

• General transfer balance cap: $2.1 million

This cap limits the amount that can be transferred into retirement phase income streams. It also determines eligibility for non-concessional contributions.

Downsizer Contributions (2026–27)

Downsizer contributions remain unchanged.

• Maximum downsizer contribution: $300,000 per individual

This cap is not indexed and is separate from concessional and non-concessional contribution limits.

Division 293 Tax Threshold

Division 293 tax continues to apply to high-income earners.

• Division 293 income threshold: $250,000

Individuals above this threshold may pay an additional 15% tax on concessional contributions.

Government Co-Contribution Thresholds (2026–27)

For eligible low- and middle-income earners:

• Lower income threshold: $49,293
• Higher income threshold: $64,293

Defined Benefit and Untaxed Plan Caps

• Defined benefit income cap: $131,250
• Untaxed plan cap: $1.935 million

CGT Cap (Small Business Retirement Exemption)

• CGT cap amount: $1.935 million

This cap applies to eligible small business owners contributing proceeds from the CGT retirement exemption into super.

Why These Changes Matter

With higher caps in 2026–27, many Australians have greater opportunities to:

• Increase tax-effective retirement savings
• Optimise employer and personal contributions
• Plan pension commencements more strategically
• Avoid excess contributions tax

However, the interaction between contribution caps, total super balance limits, and pension rules can be complex.

Need Help Navigating the 2026–27 Super Rules?

At iCare Super, we help individuals, business owners, and SMSF trustees understand how superannuation changes apply to their personal circumstances.

If you would like tailored advice on contributions, retirement planning, or SMSF strategies for 2026–27, speak with your adviser before making any major decisions.