Maximise Your Super: Making Sense of Contribution Caps in 2025–26

Learn how concessional & non-concessional contribution caps work in 2025–26, and how to use them smartly to grow your super for retirement.

If you are in your 50s or 60s, chances are you have built up a good nest egg in super - but you might still be wondering: “Am I doing everything I can to boost it before retirement?”

The good news is, there are clear rules about how much you can put into super each year, and when you understand these contribution caps, you can make the most of tax savings and top up your super without breaching any limits.

In this guide, we will break down the two main types of contributions - Concessional and Non-Concessional - and share some practical strategies may be able to be utilised to maximise your super in the lead-up to retirement.

What Are Contribution Caps?

Think of contribution caps as the “speed limits” on how much money can go into your super each year. These limits are set by the government.

There are two types of caps you need to know about:

• Concessional contributions (before-tax contributions)

• Non-Concessional contributions (after-tax contributions)

Let’s unpack each one.

Concessional Contributions: Pre-Tax Super Boosters

Concessional contributions are those made into your super fund before tax is taken out. They include:

• Employer contributions (Super Guarantee – now 12% of salary from 1 July 2025)

• Salary sacrifice contributions (where you choose to put more of your pay into super)

• Personal contributions you claim a tax deduction for.

For the 2025–26 financial year, the concessional contributions cap is $30,000 per person, per year.

Why it matters: These contributions are usually taxed at a maximum of 15% inside your super fund, which is lower than many people’s Marginal Tax Rate. For higher earners, there may be an extra 15% tax (called Division 293 tax), but even then, the rate is often still lower than paying full marginal tax.

As an example: If you earn $100,000 and salary sacrifice $10,000 into super, instead of paying up to 34.5% in income tax (including Medicare levy), that money is taxed at 15% - leaving you with more in retirement savings.

Non-Concessional Contributions: After-Tax Super Boosters

Non-concessional contributions are made from your take-home pay or savings, after tax has already been paid.

For 2025–26, the cap is $120,000 per year.

If you want to make a larger contribution, the bring-forward rule may allow you to put in up to three years’ worth ($360,000) in one go, provided your super balance is below the relevant threshold.

This can be particularly helpful if you have sold a business, downsized property, or simply have extra cash you would like to hold in super’s tax-friendly environment.

Smart Strategies to Maximise Your Contributions

Carry-Forward Concessional Contributions

Didn’t use all of your Concessional cap in the past five years? If your balance was under $500,000 at the last 30 June, you may be able to carry forward unused cap amounts and catch up.

This is especially useful if your income is higher in certain years - enabling you to contribute more and claim bigger tax deductions.

Downsizer Contributions

If you are aged 55 or over and sell your home, you may be able to contribute up to $300,000 from the sale into super. This contribution does not count towards your usual caps, making it a great one-off boost. 

Spouse Contributions and Splitting

Couples can make use of contribution splitting or spouse contributions to even out balances. This can help both partners make the most of their caps and potentially improve Age Pension eligibility down the track.

What Happens If You Go Over the Cap?

Exceeding the caps can lead to penalties. Excess concessional contributions are taxed at your Marginal Tax Rate (minus a 15% credit for the tax already paid in super). Excess Non-Concessional contributions may be taxed at the top marginal rate.

That is why planning ahead (and keeping track of employer contributions as well as your own) is so important.

Looking Ahead: Pension Phase & Transfer Balance Cap

It is also worth remembering that once you move into retirement and start an account-based pension, there is a separate transfer balance cap (the maximum amount you can transfer into a tax-free retirement income stream). From 1 July 2025, this cap is $2 million.

Contribution caps may seem like dry rules, but when you know how to work within them, they can be powerful tools to build your super faster and smarter. By combining strategies like salary sacrifice, carry-forward contributions, or even downsizer contributions, you can put yourself in a much stronger financial position for retirement.

As always, the use of these thresholds and strategies is entirely dependent on your personal circumstances so prior to implementing anything, chat with a licensed and registered Financial Adviser about which strategies may be appropriate for your situation. Getting it right could mean thousands of extra dollars working for you in retirement, and getting it wrong could come with unintended consequences.

General Advice Warning! This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. (If applicable) You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.