Superannuation contribution caps for 2026-27: what changed and what did not

The indexed figures for the current year, alongside the year just completed:

Eligibility for the bring-forward depends on total super balance at 30 June of the previous year. For 2026-27, measured at 30 June 2026: under $1.84 million gives the full $390,000 over three years; $1.84 million to under $1.97 million gives $260,000 over two years; $1.97 million to under $2.1 million gives $130,000 with no bring-forward; and $2.1 million or more gives nil.

The equivalent 2025-26 thresholds were $1.76 million, $1.88 million and $2.0 million.

Carry-forward concessional contributions let a member use unused cap space from the previous five years — but only where their total super balance was under $500,000 at 30 June of the prior year. That $500,000 figure is not indexed, so as balances and caps rise, fewer members qualify each year. Unused cap from 2021-22 expires on 30 June 2027.

Division 293 tax applies an additional 15% where income plus concessional contributions exceeds $250,000, on the lesser of the concessional contributions or the excess over the threshold. That threshold has been frozen since 1 July 2017 and is likewise not indexed.

The general transfer balance cap is $2.1 million from 1 July 2026, indexed to CPI in $100,000 increments. But a member's personal transfer balance cap indexes proportionally — only on their unused cap space.

A member who has fully used their cap receives no increase at all. This is routinely misunderstood by clients who read the headline figure and assume everyone moves up together.

The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 and its companion imposition Act passed the Senate on 10 March 2026 and received Royal Assent on 13 March 2026.

The tax applies from 1 July 2026, making 2026-27 the first income year. The first total super balance test is at 30 June 2027, with first assessments expected in 2027-28.

In the ATO's terminology, a large superannuation balance threshold of $3 million attracts an additional 15%, and a very large superannuation balance threshold of $10 million attracts a further 10% — giving effective rates of 30% and 40% on the relevant portion of earnings.

Two features of the final legislation differ from earlier drafts and are worth stating clearly, because a great deal of commentary still describes the original design. Unrealised gains are not taxed: the tax applies to realised earnings only. And the thresholds are indexed to CPI, in $150,000 and $500,000 increments respectively. Negative earnings can no longer be carried forward, a change from the draft.

Downsizer contributions remain available from age 55, up to $300,000 per person or $600,000 per couple, within 90 days of settlement, once only. They sit outside both the concessional and non-concessional caps, which makes them a useful route where a client's total super balance has closed off the bring-forward.

This article is general information for registered practitioners, not personal advice. Superannuation thresholds change annually and some are indexed on different bases; confirm the current figures and the client's total super balance before advising.