Good news for anyone looking to grow their superannuation and reduce their tax — the contribution caps are going up from 1 July 2026.

Following the release of the December 2025 quarter average weekly ordinary times earnings (AWOTE) figures, both the concessional and non-concessional contribution caps will increase. Here's what's changing and what it could mean for you.

What's changing?

From 1 July 2026:

• The concessional contribution (CC) cap increases from $30,000 to $32,500
• The non-concessional contribution (NCC) cap increases to $130,000

These are the headline numbers — but your personal cap may be higher or lower depending on your individual circumstances, including your total superannuation balance (TSB) at the prior 30 June.

Concessional contributions — the pre-tax opportunity

Concessional contributions are made from pre-tax dollars and include your compulsory superannuation guarantee (SG), salary sacrifice contributions and personal deductible contributions.

If your employer's SG contributions aren't using up your full cap, you may be able to top up voluntarily and reduce your tax bill in the process. The higher the gap between your SG and the cap, the greater the potential saving.

There's also a carry-forward opportunity worth knowing about. If your TSB was below $500,000 on 30 June last year, you may be able to access any unused concessional cap from the previous five years — potentially allowing a significantly larger pre-tax contribution in one go.

Non-concessional contributions — the longer game

Non-concessional contributions are made from after-tax money, so there's no immediate tax deduction. But don't overlook them.

Once money is inside superannuation, earnings are taxed at just 15% during the accumulation phase — well below most people's marginal tax rate. In retirement, those earnings and drawdowns can be entirely tax-free, subject to the pension transfer balance cap of $2,100,000 from 1 July 2026.

There's also a bring-forward option that allows you to contribute up to three years' worth of NCCs in a single year — $390,000 from 1 July 2026 — which can be particularly powerful for those looking to move a lump sum into super quickly.

A word of caution: the bring-forward rules are complex. Your TSB, any NCCs made in the current and prior two financial years, and your eligibility all need to be carefully assessed before you act.

If your TSB was below $2,000,000 on 30 June 2025, there may also be NCC opportunities available to you before this financial year closes on 30 June 2026 — worth reviewing now.

What should you do next?

The window before 30 June 2026 is short, and super decisions made in the wrong order or without proper planning can have lasting consequences. If you'd like to understand how these changes could reduce your current and future tax bill, reach out to our team. We'll help you work through the numbers and identify the right strategy for your situation.

Please note: This article is general in nature. Superannuation and contribution rules are complex and your individual circumstances — including your total super balance, age and prior contributions — must be considered before acting. Please speak with your tax adviser or financial planner before making any decisions.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.