Transfer balance cap and super contribution limits: what’s changing and how to plan

Several superannuation caps are increasing over the next two financial years. These changes may affect how much you can contribute to super and how much you can move into a tax-free retirement phase pension.

Understanding the transfer balance cap and contribution limits can help you plan ahead and make the most of your super.

Transfer balance cap increase

The general transfer balance cap increased to $2 million from 1 July 2025. This cap sets the maximum amount of super that can be transferred into a retirement phase pension, where investment earnings are tax free.

From 1 July 2026, the transfer balance cap is expected to increase again to $2.1 million through indexation.

Members who may benefit from the transfer balance cap increase include:

• Members who have not yet started a retirement phase pension

• Members who have only partially used their personal transfer balance cap

Members who have already used their full transfer balance cap will not receive any increase.

Each member’s personal transfer balance cap is calculated individually, based on previous pension activity. Your updated cap information will be available through MyGov.

Concessional and non-concessional contribution caps

The concessional contribution cap is expected to increase from $30,000 to $32,500 from 1 July, reflecting recent wage growth.

If confirmed, this change would also increase:

• The non-concessional contribution cap to $130,000

• The three-year bring-forward rule limit to $390,000

These super contribution limits apply across all super funds and are an important consideration when making larger contributions.

Planning before 30 June

Timing can make a difference. Starting a retirement phase pension or triggering the bring-forward rule before indexation may lock in lower contribution limits.

Members already in a bring-forward period should be aware that:

• The original bring-forward cap generally continues for the remainder of the period

• Indexation does not automatically increase the remaining contribution amount

Age-based contribution rules should also be considered, especially if this is the final year you are eligible to make contributions to super.

Why these super changes matter

The upcoming superannuation cap increases may allow eligible members to:

• Transfer more super into a tax-free retirement phase pension

• Make larger concessional or non-concessional contributions, where rules allow

Reviewing your super contribution strategy and retirement planning before 30 June can help ensure you are well positioned to take advantage of the new limits.