Super Contribution Caps Explained
Superannuation caps set the rules for how much you can contribute each year without facing extra tax. Understanding which cap applies to you - and how they change over time - is essential for making the most of your super strategy.
Last updated: April 2026 · ATO-Aligned Information 8 min read
In this article
- The three caps - a quick overview
- Concessional contributions cap
- How the cap is indexed - AWOTE explained
- Non-concessional contributions cap
- Maximum super contribution base (MSCB)
- What happens if you exceed a cap?
- Frequently asked questions
The three caps - a quick overview
Australia's superannuation system has three distinct limits you need to be aware of. They each serve a different purpose and apply in different situations.
| Cap | 2025–26 limit | Who it applies to |
|---|---|---|
| Concessional contributions cap | $30,000 | Everyone - limits total before-tax contributions |
| Non-concessional contributions cap | $120,000 | Those with TSB under $2 million - limits after-tax contributions |
| Maximum super contribution base | $62,500/qtr | Employers - caps the earnings base for mandatory SG contributions |
Each of these is explained in detail below. It is important to note that contributions from all your super funds are combined and counted together - there is no separate cap per fund.
Concessional contributions cap
The concessional contributions cap is the maximum amount of before-tax contributions you can make to your super each financial year without being subject to extra tax. "Concessional" refers to the tax concession - contributions taxed at just 15% inside the fund rather than at your marginal income tax rate.
The cap applies to the total of all concessional contributions across all your super funds, including:
- Employer Superannuation Guarantee (SG) contributions
- Salary sacrifice contributions
- Personal contributions for which you claim a tax deduction
Concessional cap history
| Financial Year | Concessional Cap | Non-concessional Cap |
|---|---|---|
| 2017–18 to 2020–21 | $25,000 | $100,000 |
| 2021–22 to 2023–24 | $27,500 | $110,000 |
| 2024–25 & 2025–26 ✦ Current | $30,000 | $120,000 |
| 2026–27 (confirmed) | $32,500 | $130,000 |
Don't forget your employer contributions count toward the cap
With the SG rate now at 12%, an employee earning $100,000 already has $12,000 of their concessional cap used by employer contributions alone. That leaves $18,000 for salary sacrifice or personal deductible contributions before hitting the $30,000 limit. At higher salaries - up to the maximum super contribution base - employer contributions can consume the cap entirely.
How the cap is indexed - AWOTE explained
The concessional contributions cap doesn't stay fixed forever - it rises over time in line with wage growth. The mechanism used to do this is called AWOTE: Average Weekly Ordinary Time Earnings.
AWOTE is the Australian Bureau of Statistics' measure of what the average full-time Australian employee earns per week, before overtime. The government uses it as a benchmark for how much wages across the economy are growing. When AWOTE rises, it's a signal that the cap should rise too - otherwise the real value of the contribution limit would gradually erode as wages and costs of living increase.
Think of AWOTE indexation as the government keeping the contribution cap in step with the real world - so that the same proportion of an average salary can go into super each year, regardless of wage growth.
How the indexation mechanism works
Each year, the ATO checks whether the December quarter AWOTE figure - released by the Australian Bureau of Statistics in late February - has grown enough to trigger an increase. The concessional cap rises in fixed $2,500 increments (rounded down), meaning it only moves once enough AWOTE growth has accumulated to justify the next step up.
This is why the cap doesn't move every year. It sat at $25,000 for four years (2017–18 to 2020–21), then jumped to $27,500, stayed there for three years, then moved to $30,000 in 2024–25. The next confirmed increase is to $32,500 from 1 July 2026, following AWOTE data released in February 2026.
Indexation rules at a glance
| Indexed to | AWOTE (Average Weekly Ordinary Time Earnings) |
| Increment size | $2,500 (rounded down) |
| Data source | ABS December quarter AWOTE, released ~February each year |
| Effective from | 1 July of the following financial year |
| Non-concessional cap link | Always exactly 4× the concessional cap |
| Next confirmed change | $32,500 concessional / $130,000 non-concessional from 1 July 2026 |
Non-concessional contributions cap
Non-concessional contributions (NCCs) are after-tax contributions - money that has already been taxed before it enters your super fund. Because no tax deduction is claimed, these contributions are not taxed again on the way in. The trade-off is that they are subject to their own annual cap.
The non-concessional cap is always set at exactly four times the concessional contributions cap. This relationship is fixed by legislation. So as the concessional cap rises, the non-concessional cap rises proportionally:
| Financial Year | Concessional cap | Multiplier | Non-concessional cap |
|---|---|---|---|
| 2021–22 to 2023–24 | $27,500 | × 4 | $110,000 |
| 2024–25 & 2025–26 ✦ Current | $30,000 | × 4 | $120,000 |
| 2026–27 (confirmed) | $32,500 | × 4 | $130,000 |
Eligibility to make non-concessional contributions
Not everyone can make non-concessional contributions. Your ability to contribute - and how much - depends on your Total Superannuation Balance (TSB) on 30 June of the previous financial year:
| TSB on 30 June 2025 | NCC available in 2025–26 | Bring-forward available |
|---|---|---|
| Under $1.76 million | $120,000 | Up to $360,000 over 3 years |
| $1.76m to under $1.88m | $120,000 | Up to $240,000 over 2 years |
| $1.88m to under $2 million | $120,000 | No bring-forward available |
| $2 million or more | $0 - nil cap applies | Not applicable |
The bring-forward rule for non-concessional contributions
If you are under 75 and your TSB is below the relevant threshold, the bring-forward rule allows you to contribute up to three years of non-concessional cap in a single financial year - up to $360,000 in 2025–26. This is distinct from the carry-forward rule (which applies to concessional contributions) and works differently: once triggered, your bring-forward cap is locked in for the period, meaning you cannot benefit from a cap increase mid-way through. The bring-forward cap rises to $390,000 from 1 July 2026.
Projected contribution caps over the next 10 years
Because the concessional cap is indexed to AWOTE in $2,500 increments, it doesn't move every year - it only steps up once enough wage growth has accumulated to justify the next increment. The table below shows projected cap levels through to 2035-36, assuming 3.7% AWOTE growth per year (the current default rate used in financial modelling).
The non-concessional cap is always exactly four times the concessional cap, so it moves in $10,000 steps. The three-year bring-forward maximum is three times the annual non-concessional cap.
| Financial Year | Concessional Cap | Non-Concessional Cap | 3-Year Bring-Forward |
|---|---|---|---|
| 2025–26 Current | $30,000 | $120,000 | $360,000 |
| 2026–27 Confirmed | $32,500 | $130,000 | $390,000 |
| 2027–28 projected | $32,500 | $130,000 | $390,000 |
| 2028–29 projected | $32,500 | $130,000 | $390,000 |
| 2029–30 projected | $35,000 | $140,000 | $420,000 |
| 2030–31 projected | $37,500 | $150,000 | $450,000 |
| 2031–32 projected | $37,500 | $150,000 | $450,000 |
| 2032–33 projected | $40,000 | $160,000 | $480,000 |
| 2033–34 projected | $40,000 | $160,000 | $480,000 |
| 2034–35 projected | $42,500 | $170,000 | $510,000 |
| 2035–36 projected | $45,000 | $180,000 | $540,000 |
Projections assume 3.7% AWOTE growth per annum from the confirmed 2026–27 base. The concessional cap moves in $2,500 increments (rounded down), so years with insufficient accumulated growth show no change. The non-concessional cap is legislatively set at 4× the concessional cap. Actual caps will depend on ABS AWOTE data released each February and may differ from these projections. These figures are indicative only.
Maximum super contribution base (MSCB)
The maximum super contribution base (MSCB) is a separate and often misunderstood limit. It does not cap your personal contributions - it caps the earnings base on which your employer is legally required to pay the Superannuation Guarantee.
In practical terms: if you earn above the MSCB, your employer is only required to pay SG contributions on the portion of your salary up to the quarterly limit - not your full earnings. Any salary above this threshold is, from an SG perspective, effectively ignored.
Example
You earn $70,000 per quarter in 2025–26
| Your quarterly salary | $70,000 |
| MSCB (earnings base your employer uses) | $62,500 |
| Mandatory SG contribution (12% of $62,500) | $7,500 |
| Salary above MSCB - no SG required on this portion | $7,500 (not covered) |
Your employer is legally required to contribute SG only on the first $62,500 of your quarterly earnings. The remaining $7,500 of salary carries no mandatory SG obligation - though your employer may choose to contribute on it voluntarily.
How the MSCB is indexed
Like the concessional contributions cap, the MSCB increases each financial year in line with AWOTE. This means it rises gradually as average wages in the economy grow. Unlike the concessional cap (which moves in $2,500 increments), the MSCB is set quarterly and adjusted each financial year based on the same AWOTE data.
What happens if you exceed a cap?
Exceeding a contributions cap triggers additional tax - but the consequences differ depending on which cap you breach.
Exceeding the concessional cap
Excess concessional contributions are included in your assessable income and taxed at your marginal tax rate. You receive a 15% tax offset to account for contributions tax already paid inside the fund. The excess amount also counts toward your non-concessional contributions cap unless you elect to have it released from the fund. The ATO will notify you if this has occurred.
Exceeding the non-concessional cap
Excess non-concessional contributions are subject to a tax equal to the top marginal rate (47%), applied to the "associated earnings" calculated by the ATO. You have two choices: withdraw the excess (plus associated earnings) from your fund, or leave it in and pay the tax. Withdrawing is almost always preferable - leaving excess NCCs in the fund effectively taxes them at 47%, eliminating all the benefits of contributing.
The ATO calculates and notifies you - but prevention is better
The ATO uses information from your tax return and your super fund's annual reporting to identify excess contributions. You'll receive a notice, but by then the tax outcome is largely set. The most effective approach is to track your contributions throughout the year - your super fund's online portal and ATO Online Services via myGov both show year-to-date contributions in real time.
Frequently asked questions
Do the caps apply per fund or across all my super accounts?
Across all funds. Both the concessional and non-concessional caps are totals across every super account you hold. If you have multiple funds, all contributions to all accounts are added together by the ATO. This is a common cause of accidental excess contributions for people consolidating super or maintaining multiple accounts.
When does the concessional cap next increase?
The concessional cap increases to $32,500 from 1 July 2026, confirmed following AWOTE data released in February 2026. The non-concessional cap will simultaneously rise to $130,000, and the maximum 3-year bring-forward amount will increase to $390,000.
Can I contribute more than the concessional cap if I use carry-forward amounts?
Yes. If your Total Superannuation Balance was below $500,000 on 30 June of the previous year, you can access unused concessional cap amounts from the prior five financial years and contribute above the standard annual cap without extra tax. This is known as the carry-forward rule. See our separate guide on carry-forward contributions for the full detail.
My employer earns me more than the MSCB. Can I ask them to contribute more?
Yes. The MSCB only sets the floor for what your employer must legally do. An employer can always choose to pay SG contributions on earnings above the MSCB limit - it is simply not required. Alternatively, you can top up your super independently via personal contributions or salary sacrifice arrangements, subject to your overall concessional cap.
Is there a cap on super contributions for people over 75?
Broadly, voluntary contributions cannot be made to super once you turn 75 (with the exception of certain mandated employer contributions and downsizer contributions). The bring-forward rule for non-concessional contributions is available up to age 75. The contribution caps themselves do not change based on age - the restrictions are on eligibility to contribute at all.
Does the concessional cap include the SG contributions my employer is required to make?
Yes. The $30,000 concessional cap is the total of all before-tax contributions - including mandatory employer SG contributions. There is no separate "employer only" cap. This means your available room for voluntary concessional contributions (salary sacrifice or personal deductible contributions) is the cap minus whatever your employer has already contributed.
General information only. This article provides general information about Australian superannuation contribution caps and does not constitute financial product advice. It does not take into account your personal objectives, financial situation or needs. Superannuation rules are complex and subject to change.
