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. People who meet the relevant conditions may also collect a government co-contribution of up to $500 on personal after-tax contributions.
Concessional contributions cap 2026–2027
The concessional contributions cap is $32,500 for 2026–2027. It is a combined limit — every concessional contribution counts towards it, regardless of source.
| What counts towards the $32,500 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
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. Those contributions are also reportable, so they are added back into the income a study loan repayment is assessed on — the HECS repayment calculator shows the effect.
Non-concessional contributions cap
The non-concessional contributions (NCC) cap is $130,000 per year for 2026–2027. 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, the amount you can bring forward depends on your total super balance (TSB) at 30 June of the prior year. A balance below $1.84 million can unlock up to two future NCC caps — a lump sum of up to $390,000 over three years. Higher balance bands have smaller limits, as the table shows.
| Total super balance (prior 30 June) | Maximum NCC (3-year period) |
|---|---|
| Under $1.84 million | $390,000 (full bring-forward) |
| $1.84 million to under $1.97 million | $260,000 (2-year bring-forward) |
| $1.97 million to under $2.10 million | $130,000 (annual cap only) |
| $2.10 million or more | Nil — no NCC cap is available |
Division 293 tax
Division 293 tax applies when your income for surcharge purposes plus your low tax contributions — concessional contributions excluding any excess over the concessional cap — exceeds the $250,000 threshold. Because the contributions themselves count towards the test, your income alone does not need to reach $250,000. The extra tax is 15% of the lesser of your low tax contributions and the amount above the threshold. A contribution fully within that lesser amount faces a total fund-tax rate of 30%; near the threshold, only part of the contributions may attract the extra tax. Members of defined benefit funds and constitutionally protected funds are covered by modified Division 293 rules.
| Scenario | Income + super | Div 293 applies? | Illustrative Div 293 extra tax |
|---|---|---|---|
| $200,000 salary + $24,000 super | $224,000 | No | — |
| $240,000 salary + $28,800 super | $268,800 | Yes | $2,820 |
| $300,000 salary + $32,500 super | $332,500 | Yes | $4,875 |
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. Where the full extra tax applies, 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.
Source: ATO — concessional contributions cap and carry-forward rules.
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 $37,000 or 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 and no requirement to lodge a tax return.
| 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 | Income, at least 10% of total income from employment or business, and residency and visa conditions must all be met |
Worked example: LISTO on $30,000
Voluntary contributions — is it worth it?
Extra concessional contributions normally 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. Division 293 can reduce that saving. The trade-off is that the money is generally locked away until you meet a condition of release.
| 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 |
| Where a contribution is subject to Div 293 | Depends on the income mix | 30% maximum | Varies near the threshold |
Super may be locked away for years
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 can add up to $500 to your super when you make an eligible personal (non-concessional) contribution and meet the income, age, residency, total-super-balance and employment-or-business-income tests. It is a direct government top-up, paid after you lodge your tax return.
| Your income | Co-contribution rate | To receive max $500 |
|---|---|---|
| $49,293 or below | $0.50 per $1 contributed | Contribute $1,000 |
| $49,294 – $64,293 | Tapers to zero | Co-contribution reduces as income rises |
| $64,294+ | 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 2026-27?
The concessional contributions cap is $32,500 for 2026-27. 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 $32,500 a year. Non-concessional contributions are made from after-tax money, enter the fund tax-free, and are capped at $130,000 a year.
Can I claim my personal super contribution as a tax deduction?
Yes, if you are eligible and give your fund a valid Notice of intent to claim a deduction before lodging your tax return (or the end of the following income year, if earlier). Your fund must acknowledge the notice before you claim the deduction. The amount claimed becomes concessional, is normally taxed at 15% in the fund, and counts towards the $32,500 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 non-refundable tax offset equal to 15% of the excess for the 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 $130,000 a year enter your fund with no contributions tax. If you are under 75 and your prior 30 June total super balance is below $1.84 million, the bring-forward rule can allow up to $390,000 across three years. Higher balances can allow only two years or the annual cap, so check the bring-forward table before contributing.
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 super when you reach preservation age and retire, start a transition-to-retirement income stream, cease an employment arrangement on or after age 60, or turn 65. Reaching age 60 by itself does not always release unrestricted super. There are limited early-release grounds, including severe financial hardship and 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)?
LISTO is available only when all eligibility conditions are met. This includes adjusted taxable income of $37,000 or less, concessional contributions, at least 10% of your total income coming from employment or business, and the relevant residency and visa conditions. You do not need to lodge a tax return to receive it — the ATO can work it out from your fund's reporting and other income data, and credits up to $500 directly to your super fund.