Australia’s superannuation system applies legally defined contribution caps that limit how much money can be added to superannuation each financial year. These caps are established in tax law and administered by the Australian Taxation Office (ATO), with consumer-facing explanations published by MoneySmart, operated by ASIC. The information below reflects general settings for the 2025–26 financial year, based on publicly available ATO and ASIC guidance.
Purpose
Contribution caps exist to support the integrity of the superannuation system. They limit the tax concessions available within superannuation and are designed to ensure those concessions are distributed within legislated boundaries. Caps apply automatically under tax law and are enforced through the income tax system rather than through superannuation funds themselves.
Cap Types
Australia distinguishes between two primary categories of superannuation contributions. Each category has a separate cap, different tax treatment, and different compliance consequences.
Concessional Caps
Concessional contributions are contributions made from pre-tax income and are generally taxed within the superannuation fund.
General Cap
For 2025–26, the general concessional contributions cap is $30,000 per financial year, as published by the ATO. This cap typically covers employer Super Guarantee contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed, as summarised by MoneySmart.
Carry Forward
Unused portions of the concessional cap may be carried forward for up to five financial years, subject to eligibility conditions set out by the ATO. MoneySmart highlights the key control mechanism: a person’s total super balance must be under $500,000 at 30 June of the previous financial year for unused cap amounts to be available.
Non-Concessional Caps
General Cap
For 2025–26, the general non-concessional contributions cap is $120,000 per financial year, according to MoneySmart.
Bring Forward
The ATO describes a bring forward arrangement that may allow access to multiple years of non-concessional caps at once. The amount available is determined by a person’s total super balance at 30 June of the prior financial year and other legislated conditions.
A commonly published structure consistent with the ATO framework for 2025–26 is:
- Total super balance under $1.76 million: up to $360,000 over three years
- $1.76 million to under $1.88 million: up to $240,000 over two years
- $1.88 million to under $2.0 million: $120,000 (no bring forward period)
- $2.0 million or more: nil non-concessional cap
Technical guidance also notes that age interacts with the bring forward rules, with eligibility generally framed around being under age 75 at the relevant time window.
Employer Limits
Some limits affect compulsory employer contributions but are not contribution caps in the same legal sense.
Super Guarantee
For 2025–26, the Super Guarantee rate is 12%, as confirmed by the ATO. Employers are not required to pay Super Guarantee on earnings above the maximum super contribution base.
The ATO lists the 2025–26 maximum super contribution base as $62,500 per quarter, which implies a maximum compulsory employer contribution of $7,500 per quarter at the 12% rate.
Related Thresholds
Several contribution eligibility rules reference the general transfer balance cap, which was indexed to $2.0 million from 1 July 2025, according to ATO publications. While this is not a contribution cap, it is a key threshold within the superannuation framework.
Enforcement
Contribution caps are monitored by the ATO using information reported by employers, superannuation funds, and individuals. Where contributions exceed a legislated cap, tax law sets out specific consequences and administrative processes. These outcomes are applied through the tax system rather than through discretionary decisions by funds.
Clarifications
Some commonly misunderstood points warrant clarification:
- Contribution caps are set by law, not by superannuation funds.
- The practical cap that applies can differ from the headline cap due to total super balance, timing, or previously triggered periods.
- Employer Super Guarantee limits and contribution caps are separate concepts with different legal purposes.
- Caps and thresholds are indexed over time and may change between financial years.
Currency
Superannuation contribution caps and thresholds are subject to legislative change and indexation. Readers should always rely on current information published by the Australian Taxation Office and MoneySmart when confirming figures.
Superannuation contribution caps define the maximum amounts that can be added to super under Australian tax law. For 2025–26, these include a $30,000 concessional cap and a $120,000 non-concessional cap, with additional rules linked to total super balance, age, and reporting thresholds. The ATO enforces these limits through the tax system, and published guidance should be consulted to confirm current figures and definitions.
General Information Disclaimer
This article provides general information only and does not take into account individual objectives, financial situations, or needs. It is not intended to be, and should not be relied on as, financial advice.
