Superannuation Caps for 2025/26 financial year

The ATO has now released the increased superannuation caps which will apply for the 2026 tax year. The more significant caps are set out below.

Concessional contributions cap - $30,000 (no increase).

Non-concessional contributions cap - $120,000 (no increase).

Bring - forward non-concessional contributions cap - $360,000 (no increase).

CGT non-concessional contributions cap - $1,865,000 (an increase of $85,000 over the cap which applied for the 2025 tax year).

Transfer Balance Cap - $2,000,000 (an increase of $100,000). Individuals who are considering commencing their first retirement phase income stream will have to consider whether to commence the income stream before 1 July 2025 (and lock in a personal transfer balance based upon $1.9m) or defer commencing the income stream until after 30 June 2025 (to lock in a personal balance cap based upon $2m).

Superannuation Guarantee Contributions Rate (SGC rate) – 12.00% (previously 11.50% for 25 tax year). After almost a 33 year journey, the SGC rate has increased from 4% to its maximum rate of 12%. It seems that there is no current proposal to further increase the rate beyond 12%.

The maximum contribution base will be $62,500 per quarter (previously $65,070 per quarter). The maximum contribution base for 2026 tax year has decreased compared to the maximum base for the 2025 tax year. This reduction is due to the fact that the relevant legislation provides that the maximum contribution base for a quarter cannot exceed the quarterly salary which, if paid, by an employer would give rise to a SGC contribution by that employer equal to one quarter of the concessional contribution cap.