Super contributions
Concessional contributions: types, tax and the 2026–27 cap
By easySMSF, SMSF Specialist Team · Updated
Concessional super contributions are amounts that reach super before personal income tax, or amounts you later claim as a tax deduction. Employer contributions, salary sacrifice and personal deductible contributions all share one annual cap. This guide explains what belongs in that category, how the 15% contributions tax works, and the records an SMSF must keep.
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Concessional contributions cap for 2026–27
The standard concessional contributions cap is $32,500 per person for 2026–27, up from $30,000 in 2025–26. Employer, salary-sacrifice and personal deductible contributions across all super funds count toward the one member cap.
What counts toward the concessional contributions cap
The category covers employer Super Guarantee, employer contributions above the minimum, salary-sacrifice amounts and personal contributions for which the member claims an income-tax deduction. Some defined-benefit interests also generate notional taxed contributions. The label follows the tax treatment, not who transferred the money.
The fund generally deducts 15% contributions tax. A separate Division 293 assessment can impose another 15% on some or all concessional contributions where the member's Division 293 income and concessional contributions exceed $250,000. This differs from tax on investment earnings and from any tax payable when a benefit is eventually withdrawn.
For 2026–27, the standard concessional cap is $32,500 per person across every super account combined. Employer payments consume part of that cap before salary sacrifice or a personal deductible top-up is counted. Members should use contribution-received dates shown by each fund, rather than payslip dates alone, when checking the financial year.
Carry-forward rules may increase the available cap. A member whose Total Super Balance was below $500,000 at the previous 30 June can use available unused concessional cap amounts from the preceding five years. The oldest amount is applied first and expires if it remains unused after five years.
A personal contribution is not deductible merely because it was deposited into super. The member must give the fund a valid notice of intent and receive an acknowledgement before lodging the relevant tax return, and before certain rollovers, withdrawals or pension commencements. The SMSF should retain the notice, acknowledgement, deposit evidence and allocation record for its accounts and independent audit.
If the cap is exceeded, the excess is generally included in assessable income with a 15% offset and an interest charge. The ATO determination explains the release option, which can permit up to 85% of the excess to leave super. This is separate from non-concessional excess rules.
- Includes employer, salary-sacrifice and personal deductible contributions
- Generally taxed at 15% inside the fund
- 2026–27 standard cap: $32,500 per member across all funds
- Carry-forward may use five years of unused cap when the balance test is met
- Personal deductions require a valid notice of intent and fund acknowledgement
- Division 293 may add 15% tax for affected higher-income members
- SMSFs must classify, report and retain evidence for every contribution
Compare this category with non-concessional contributions or use the side-by-side contribution guide.
Current thresholds are collected in the 2026–27 contribution caps summary. Also review bring-forward non-concessional contributions and the self-managed super fund guide.
2025–26 and 2026–27 concessional caps
| Financial year | Standard cap | Balance test for carry-forward |
|---|---|---|
| 2025–26 | $30,000 | TSB below $500,000 at 30 June 2025 |
| 2026–27 | $32,500 | TSB below $500,000 at 30 June 2026 |
Carry-forward concessional contributions
Eligible members can use unused concessional cap amounts from the previous five financial years. The oldest available amount is applied first. The carry-forward rule increases the member's available cap; it does not create a separate contribution type, and the Total Super Balance test is applied at the previous 30 June.
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General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).