Key Super Caps for the 2026/27 Financial Year
As Australians navigate an economic landscape where renewed worries about inflation and interest rates have recently dampened consumer sentiment, maintaining a disciplined, long-term perspective on wealth management is vital. While we look to reliable third-party providers like Bloomberg, LSEG Datastream, and the OECD to track broader market data, our house view remains that the RBA is unlikely to pivot to rate hikes as quickly as the market currently expects.
In this environment, we focus on structured, long-term Australian retirement planning rather than highly speculative, short-term investments. A cornerstone of this planning is understanding and utilising superannuation contribution caps.
Contribution caps determine the amount of money you can add to your superannuation while receiving favourable tax treatment. Exceeding these caps generally results in less favourable tax outcomes. Below are the updated caps for the 2026/27 financial year to help you strategize effectively.
Concessional Contributions Cap: $32,500
Concessional contributions are pre-tax contributions. They include Superannuation Guarantee (SG) contributions made by an employer, as well as personal contributions for which the member has claimed a personal tax deduction.
For the 2026/27 financial year, this cap will be $32,500 (an increase of $3,500 from the previous year).
Non-Concessional Contributions Cap: $130,000
Non-concessional contributions are after-tax personal contributions made by a member where no tax deduction is—or can be—claimed.
For the 2026/27 financial year, this cap will be $130,000 (an increase of $10,000 from the previous year).
Bring-Forward Non-Concessional Cap: $390,000
Subject to certain age restrictions and available transfer balance cap space, a member may "bring forward" future non-concessional limits. This allows them to contribute up to $390,000 of personal, after-tax contributions over a bring-forward period of up to three consecutive financial years.
This $390,000 cap covers the 2026/27, 2027/28, and 2028/29 financial years.
CGT Non-Concessional Contributions Cap: $1,935,000
These are personal contributions made by a member who has derived funds from small business Capital Gains Tax (CGT) concessions (specifically, the 15-year exemption or the retirement exemption). These contributions are not tax-deductible.
For the 2026/27 financial year, this cap will be $1,935,000. Importantly, this is a lifetime cap and is not subject to the general transfer balance cap.
General Transfer Balance Cap: $2,100,000
The General Transfer Balance Cap limits the total amount of superannuation that can be moved from the accumulation phase into the tax-free pension phase. It is important to note that this cap limits the starting value of the pension; pension balances can subsequently grow beyond $2,100,000 without losing the tax-free status of investment earnings in the pension phase. This cap also restricts the amount of personal contributions for which no tax deduction can be claimed.
For the 2026/27 financial year, the cap will be $2,100,000 (an increase of $100,000 from the previous year). This is a lifetime cap. Members who have commenced a pension in a previous financial year will only be entitled to a proportional indexation increase based on the extent to which they have not already exhausted their personal cap.
Downsizer Contributions: $300,000 (Unchanged)
Downsizer contributions allow eligible individuals to contribute funds from the sale of their home into their superannuation without it counting toward the standard non-concessional caps, and without requiring a tax deduction to be claimed.
To qualify, the contribution must not exceed the individual's entitlement from the sale price of a residence they (or their spouse) have owned for at least 10 continuous years immediately prior to the sale, and which qualified as their principal place of residence. The contribution must be made by a member aged 55 or older, and strictly within 90 days of the property settlement.
This specific cap remains at $300,000 and has not been indexed or increased since its introduction in 2017.
Properly leveraging these caps requires foresight and careful monitoring. As we navigate the coming financial year, keeping these thresholds in mind will be critical to optimizing your long-term wealth strategy.
For further information, or to book an appointment to ensure your business/trust affairs are in order, give Humble Goode Financial a call on 08 7477 8252 or email planning@hgfp.com.au.
General Advice Warning:The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.