Super contribution caps
Australian super contribution caps for 2025–26
Every concessional, non-concessional, bring-forward, downsizer and Transfer Balance Cap figure that applies to Australian super funds — including SMSFs — in the 2025–26 financial year, plus the early read on what changes from 1 July 2026.
Updated December 2026 — easySMSF Specialist Team.
The 2025–26 numbers at a glance
| Cap | 2025–26 amount | Notes |
|---|---|---|
| Concessional contribution cap | $30,000 | Indexed to AWOTE in $2,500 steps. Same as 2024–25. |
| Carry-forward concessional | Up to $30,000 + unused cap from 5 prior years | Available only if your TSB at 30 June 2025 was under $500,000. |
| Non-concessional contribution cap | $120,000 | Capped at $0 if your 30 June 2025 TSB was $1.9m+. |
| Bring-forward non-concessional | Up to $360,000 over 3 years | Three-year cap if TSB under $1.66m; reduced bands $240,000 / $120,000 for higher TSB. |
| Downsizer contribution | $300,000 per person | Age 55+, qualifying main residence held 10+ years. Outside the normal caps. |
| CGT cap (small business) | $1,780,000 (lifetime) | Indexed annually; for the 15-year exemption and retirement exemption pathways. |
| General Transfer Balance Cap | $1,900,000 | Lifetime cap on amounts moved into retirement-phase pensions. |
| Defined benefit income cap | $118,750 | 10% of the TBC; income above this is partly taxable. |
| Super Guarantee rate | 12% | Final scheduled SG increase — applies from 1 July 2025. |
| Low Rate Cap (lump sums age 60–under preservation) | $245,000 lifetime | For taxable component lump sums between preservation age and 60. |
| Government co-contribution upper income threshold | $60,400 | Lower threshold $45,400. Maximum co-contribution $500. |
What's changed since 2024–25
- Super Guarantee rises from 11.5% to 12% from 1 July 2025 — the last scheduled increase.
- Concessional cap holds at $30,000 — AWOTE didn't lift enough to trigger the next $2,500 step.
- Non-concessional cap holds at $120,000 (always 4× the concessional cap).
- Transfer Balance Cap stays at $1.9m — next indexation likely 2026–27 at earliest.
- Division 296 — proposed 15% extra tax on earnings attributable to TSB > $3m — scheduled to apply from the 2025–26 income year (subject to Parliament).
2026–27 outlook
Concessional cap indexation is gated to AWOTE in $2,500 steps. Based on current ABS wage data, the cap is more likely to lift to $32,500 in 2026–27 than to hold. Non-concessional would step to $130,000 (always 4×). The Transfer Balance Cap indexes in $100,000 steps to CPI and is on the cusp of moving to $2.0 million — possibly from 1 July 2026, possibly a year later. We will republish this page with the final ATO figures as soon as they are gazetted.
SMSF-specific implications
The caps above apply equally to SMSFs and APRA-regulated funds — the rules are member-based, not fund-based. But SMSF trustees should be aware of three things specific to running your own fund:
- Each member's contribution cap is tracked across all super interests they hold — your SMSF accountant needs the contribution history from every other fund the member has paid into in the year.
- Reserves and contribution-splitting strategies (a common SMSF tool) can shift contributions across cap years and between spouses — but the ATO closely scrutinises 'cap-stacking' arrangements.
- Excess contributions trigger Trustee Resolution and Excess Concessional/Non-Concessional Determinations — the SMSF Annual Return must accurately reflect every contribution and rollover, by member.
Frequently asked questions
Sources: ATO — Contribution caps, Transfer Balance Cap, Indexation; Treasury — Better Targeted Superannuation Concessions papers; Income Tax Assessment Act 1997. Related: Division 296 explained · Carry-forward concessional · Downsizer rules · Tax & contributions FAQ.
General information only. Not personal financial advice. easySMSF does not hold an AFSL.