Types of super contributions
Super contributions fall into two buckets: concessional contributions, made from pre-tax money and taxed at 15% inside the fund, and non-concessional contributions, made from money you have already paid income tax on, which enter the fund tax-free.
Definition
Concessional contributions
Definition
Non-concessional contributions
If you are still deciding whether super is the right tax lever at all, the income tax guide helps frame how super fits beside deductions, HELP, and other planning decisions. Eligible low-to-middle income earners can also collect a government co-contribution of up to $500 on personal after-tax contributions.
Concessional contributions cap 2025–2026
The concessional contributions cap is $30,000 for 2025–2026. It is a combined limit — every concessional contribution counts towards it, regardless of source.
| What counts towards the $30,000 cap | Notes |
|---|---|
| Employer SG contributions (12%) | Compulsory employer payments — always concessional |
| Salary sacrifice contributions | Voluntary pre-tax contributions via your employer |
| Personal contributions (tax-deductible) | After lodging a valid Notice of Intent with your fund |
Worked example: how much cap is left?
The cap is indexed — it rises from 1 July 2026
Concessional contributions are taxed at 15% inside the fund. For anyone paying more than that at their marginal rate, the trade-off is usually attractive — provided the money can stay inside super. If you are contributing through payroll, the salary sacrifice guide explains the mechanics and trade-offs in more detail.
Non-concessional contributions cap
The non-concessional contributions (NCC) cap is $120,000 per year for 2025–2026. These are after-tax contributions — you have already paid income tax on the money, so it enters the fund tax-free.
Bring-forward rule
If you are under 75 and your total super balance (TSB) is below $2.00 million at 30 June of the prior year, you can bring forward up to two future years of NCC cap — a lump sum of up to $360,000 over three years.
| Total super balance (prior 30 June) | Maximum NCC (3-year period) |
|---|---|
| Under $1.76 million | $360,000 (full bring-forward) |
| $1.76 million – $1.88 million | $240,000 (2-year bring-forward) |
| $1.88 million – $2.00 million | $120,000 (no bring-forward) |
| $2.00 million or more | Nil — NCC cap is $0 |
Division 293 tax
Division 293 tax adds an extra 15% tax on concessional contributions when your income plus concessional super contributions exceeds $250,000 — bringing the effective contributions tax to 30% for high earners. It reduces, but does not eliminate, the tax advantage of salary sacrifice.
| Scenario | Income + super | Div 293 applies? | Tax on contributions |
|---|---|---|---|
| $200,000 salary + $24,000 super | $224,000 | No | 15% |
| $240,000 salary + $28,800 super | $268,800 | Yes | 30% |
| $300,000 salary + $36,000 super | $336,000 | Yes | 30% |
Division 293 tax is assessed after lodging your tax return — the ATO sends a notice and you can pay it from your super fund or personally. Even at 30%, concessional contributions can still beat keeping the earnings at the top marginal rate (47% including the Medicare levy).
Carry-forward unused concessional cap
Unused concessional cap from any year since 2018-19 can be carried forward for up to five years and used in a later year — as long as your total super balance is under $500,000 at 30 June of the previous financial year. That can allow a much larger concessional contribution in a single year.
Where this rule is useful
Your available carry-forward amount is visible in the ATO section of your myGov account. Funds report contributions annually, so balances and unused caps update after each financial year.
Low Income Super Tax Offset (LISTO)
The Low Income Super Tax Offset (LISTO) refunds up to $500 of contributions tax to your super fund if your adjusted taxable income is $37,000or less. It exists so low-income earners don't pay more tax on super contributions than on their take-home pay — and the ATO pays it automatically, with no application needed.
| Condition | Detail |
|---|---|
| Income threshold | Adjusted taxable income $37,000 or less |
| Maximum payment | $500 per year |
| How it is calculated | 15% of total concessional contributions (capped at $500) |
| Who pays | ATO — credited directly to your super fund |
| Eligibility | Australian tax resident; must have received concessional contributions |
Worked example: LISTO on $30,000
Voluntary contributions — is it worth it?
Extra concessional contributions save tax by redirecting pre-tax income into super at 15% instead of your marginal rate — a saving of up to $320 per $1,000 for top-bracket earners. The trade-off is that the money is locked away until preservation age (60 for most people born after 30 June 1964).
| Taxable income | Marginal rate (incl. Medicare) | Super tax rate | Tax saved per $1,000 |
|---|---|---|---|
| $45,001 – $135,000 | 32% | 15% | $170 |
| $135,001 – $190,000 | 39% | 15% | $240 |
| $190,001+ | 47% | 15% | $320 |
| $250,001+ (Div 293) | 47% | 30% | $170 |
Super is preserved until age 60
If you are comparing this saving with other options such as deductions, HELP repayments, or a novated lease, the income tax guide is a useful cross-check.
Government co-contribution
The government co-contribution adds up to $500 to your super when you earn less than $62,488 and make a personal (non-concessional) contribution. It is a direct government top-up to your own contribution, paid automatically after you lodge your tax return.
| Your income | Co-contribution rate | To receive max $500 |
|---|---|---|
| $47,488 or below | $0.50 per $1 contributed | Contribute $1,000 |
| $47,489 – $62,488 | Tapers to zero | Co-contribution reduces as income rises |
| $62,489+ | Nil | Not eligible |
If you are getting your records ready before lodging, the tax return checklist is a useful reminder of the documents and year-end steps that usually matter.
Frequently asked questions
What is the concessional contributions cap for 2025-26?
The concessional contributions cap is $30,000 for 2025-26. It is a combined limit covering employer Superannuation Guarantee payments, salary sacrifice, and personal contributions you claim as a tax deduction. The cap is indexed to wage growth, so it rises periodically — check the ATO contributions caps page for the year you are planning for.
What is the difference between concessional and non-concessional contributions?
Concessional contributions are made from pre-tax money (employer SG, salary sacrifice, personal deductible contributions) and are taxed at 15% inside the fund, capped at $30,000 a year. Non-concessional contributions are made from after-tax money, enter the fund tax-free, and are capped at $120,000 a year.
Can I claim my personal super contribution as a tax deduction?
Yes. If you make a personal (after-tax) contribution to super and lodge a 'Notice of intent to claim a deduction' with your fund before lodging your tax return, those contributions are treated as concessional and taxed at 15% in the fund. They count towards the $30,000 concessional cap.
What happens if I exceed the concessional or non-concessional cap?
Excess concessional contributions are included in your assessable income and taxed at your marginal rate, with a 15% offset for tax already paid in the fund. Excess non-concessional contributions are taxed at 47% unless you elect to withdraw them (with associated earnings) from your fund.
How much super can I contribute tax-free each year?
Non-concessional (after-tax) contributions of up to $120,000 a year enter your fund with no contributions tax. If you are under 75 with a total super balance below $2.00 million, the bring-forward rule lets you contribute up to $360,000 across three years in one go.
What is the carry-forward (catch-up) concessional rule?
If you don't use your full concessional cap in a year, the unused amount carries forward for up to five years. You can use accumulated unused cap as long as your total super balance was under $500,000 at 30 June of the previous financial year. Your available amount is visible in ATO online services via myGov.
When can I access my super?
You can generally access your super when you reach your preservation age (60 for those born after 30 June 1964) and retire, or turn 65 regardless of employment status. There are limited grounds for early access such as severe financial hardship or terminal illness.
Can my employer refuse salary sacrifice into super?
Salary sacrifice is a voluntary arrangement — employers are not legally required to offer it. The 1 January 2020 legislative change ensured that salary sacrifice cannot reduce your SG entitlements, but it did not mandate employers to provide salary sacrifice. Whether your employer facilitates it depends on your employment contract, enterprise agreement, and payroll capability.
Who is eligible for the Low Income Super Tax Offset (LISTO)?
Australian tax residents with adjusted taxable income of $37,000 or less who receive concessional contributions (employer SG or salary sacrifice) are eligible. The ATO automatically calculates and credits up to $500 directly to your super fund — you don't need to apply.