Super Contribution Optimizer — Caps for 2026

Educational tool only. Caps indexed — confirm with ATO before contributing.

How Super Caps Work in 2026

Concessional contributions (SG, salary sacrifice, personal deductible) are taxed at 15% in fund (30% with Division 293) and capped at $32,500 from 2026-27. Non-concessional (after-tax) are capped at $130,000 or $390,000 under bring-forward where total super under thresholds. Exceeding caps means excess taxed at marginal rates plus charges — your SOA should model headroom before recommending top-ups. See our super caps guide and recontribution strategies.

Carry-forward lets you use unused concessional amounts for five years if eligible. Division 293 adds 15% where income plus concessional exceeds $250,000. Downsizer $300,000 per person sits outside caps and is modelled separately.

Carry-Forward Worked Example

Take Maya, 48, balance $420,000 at 30 June 2025, SG $14,000 in 2025-26. The $32,500 cap leaves $18,500 unused. If she had $40,000 unused from the prior four years, she could contribute up to $58,500 this year (current headroom plus catch-up) provided total stays within rules and she lodges a Section 290-170 notice for personal deductible amounts. Tax saved at 34.5% marginal versus 15% fund tax is roughly $3,600 on a $20,000 top-up — before Division 293. Your SOA should show this maths line by line, not assert contribute extra in one sentence.

Timing matters: contributions count when received by the fund, not when paid from payroll. Late-June salary sacrifice that lands in July counts next year and can bust caps. Splitting with a spouse, using bring-forward for non-concessional, and sequencing downsizer amounts (outside caps) need a multi-year plan. Bring ATO carry-forward balances to the meeting — advisers cannot guess unused amounts accurately.

Division 293, Bring-Forward and Downsizer Traps

Division 293 hits where income for surcharge purposes plus concessional exceeds $250,000 — extra 15% on the lesser of excess or concessional, effectively 30% fund tax. High earners near the threshold should model whether salary sacrifice still wins after surcharge versus non-concessional or spouse splitting. Division 296 on balances above $3 million is proposed and would add further tax — SOAs recommending large top-ups near that line must address it explicitly.

Bring-forward triggers automatically with any non-concessional above annual cap and locks three years — a $150,000 contribution in year one leaves $240,000 for years two-three combined under $390,000. Breaching total-super-balance thresholds ($1.9m transfer cap context, $1.68m–$1.9m bring-forward taper) freezes eligibility. Downsizer $300,000 per person is separate but still counts for transfer-balance and Age Pension means tests — contributing to super moves exempt home proceeds into assessable assets.

What to Ask Your Adviser

Bring the headroom figures to your SOA review: does the recommended salary sacrifice stay within $32,500 including SG? Is carry-forward available and documented with prior-year unused amounts? Has Division 293 been modelled in net benefit? Is bring-forward triggered intentionally and does it breach total-balance rules? If the SOA recommends exceeding caps without explaining excess tax, query it — AdviserCheck flags missing cap analysis under suitability. Confirm Section 290-170 deduction notices, contribution receipt dates before June 30, and spouse-split versus recontribution alternatives are all recorded in writing.

Frequently Asked Questions

What are the caps from July 2026?
Concessional $32,500, non-concessional $130,000 ($390,000 bring-forward). Prior year $30,000/$120,000.

Am I eligible for carry-forward?
Generally if balance under $500,000 at prior June 30. This tool flags eligibility only — confirm unused amounts via ATO online.

What is Division 293?
Extra 15% tax on concessional where income + concessional exceeds $250,000. Division 296 ($3m) is separate and proposed.

Is this advice?
No. Educational estimate. Confirm with ATO/adviser before contributing.

What is a Section 290-170 notice?
A written notice to your fund claiming personal contributions as a tax deduction. It must be lodged and acknowledged before you lodge your tax return or commence a pension with those amounts. Without a valid notice the contribution stays non-concessional and the deduction is lost — your SOA should confirm the notice process and timing.