What is the concessional contributions cap for 2026–27?
For the 2026–27 financial year the general concessional contributions cap is $32,500, up from $30,000, according to the Australian Taxation Office. It covers employer contributions, salary sacrifice and personal contributions claimed as a tax deduction, added across all of a person's super funds. The right level of contributions for any one person is a matter for personal advice.
What are concessional contributions?
Concessional contributions are payments into super made from before-tax money. The most common are the super guarantee paid by an employer, salary sacrifice, and personal contributions later claimed as a tax deduction. Inside the fund they are generally taxed at 15%, which is why there is a yearly limit.
How the cap has moved
The ATO indexes the cap in steps of $2,500 in line with average weekly ordinary time earnings. The published figures are:
| Financial year | General concessional cap |
|---|---|
| 2026–27 | $32,500 |
| 2024–25 and 2025–26 | $30,000 |
| 2021–22 to 2023–24 | $27,500 |
Source: Australian Taxation Office, contributions caps, checked 21 October 2026.
What people commonly ask about
- More than one fund. The cap applies to the total across all of a person's accounts, not to each one.
- Employer contributions. Super guarantee and salary sacrifice count towards the cap, so they form part of the total before any personal contribution.
- Carry-forward amounts. ATO online services shows unused amounts from earlier years for people who are eligible.
- Division 293. People with higher incomes may pay extra tax on contributions. This is explained in Division 293 tax explained.
Where personal advice fits
The right level of contributions for any one person depends on their cash flow, other goals, how close they are to retirement and the rules that apply to them. That is a matter for personal advice, which MGB Financial Services provides on retirement planning and superannuation.
How Vermilion can assist
Vermilion offers a free initial 15-minute chat about the questions this article raises. If personal advice is wanted, Vermilion can arrange an introduction to MGB Financial Services, which provides the advice. Vermilion does not give financial advice.
Sources
- Australian Taxation Office, Contributions caps, checked 21 October 2026.
- Australian Taxation Office, Concessional contributions cap, checked 21 October 2026.
- ASIC Moneysmart, Growing your super, checked 21 October 2026.
Questions
Questions people ask
What counts towards the concessional contributions cap?
Employer contributions, including super guarantee and salary sacrifice amounts, and personal contributions claimed as a tax deduction. Where a person has more than one super fund, the ATO adds the contributions to all of them together.
What happens when contributions go over the cap?
The ATO includes the excess in the person's assessable income and taxes it at their marginal rate, less a 15% offset for tax the fund has already paid. The ATO allows people to ask for some of the excess to be released from their fund, and explains the options on its website.
Can unused cap amounts from earlier years be used?
Sometimes. The ATO allows unused concessional cap amounts from up to five previous years to be carried forward where a person's total super balance was under $500,000 at 30 June of the previous financial year. ATO online services, through myGov, shows the amounts available.
Did the non-concessional cap change too?
Yes. From 1 July 2026 the ATO lists the non-concessional (after-tax) contributions cap as $130,000 a year, with eligibility depending on the person's total super balance.
