Quick Reference: 2025-26 Contribution Limits
| Contribution Type |
Annual Limit |
Tax Treatment |
| Concessional (before-tax) |
$30,000 |
15% tax in fund |
| Non-Concessional (after-tax) |
$120,000 |
No tax in fund |
| Bring-Forward (3 years) |
$360,000 |
No tax in fund |
| Downsizer (age 55+) |
$300,000 per person |
No tax, one-time only |
| Transfer Balance Cap |
$2,000,000 per person |
Pension phase limit |
💡 Key Point: These limits apply per person, not per fund. If you have multiple super accounts (SMSF + industry fund), contributions to all accounts count toward your caps.
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Concessional Contributions Explained
Concessional contributions are before-tax contributions that are taxed at 15% when they enter your super fund. The annual cap for 2025-26 is $30,000.
What Counts as Concessional?
- Employer contributions: Superannuation Guarantee (SG) contributions from your employer (currently 11.5% of ordinary time earnings)
- Salary sacrifice: Pre-tax salary you direct to super
- Personal deductible contributions: After-tax contributions you claim as a tax deduction
Tax Treatment
Concessional contributions are taxed at 15% in your super fund. This is usually lower than your marginal tax rate, making them tax-effective.
Example: If you earn $100,000 and your marginal tax rate is 32.5%, salary sacrificing $10,000 to super saves you:
- Personal tax saved: $10,000 × 32.5% = $3,250
- Super tax paid: $10,000 × 15% = $1,500
- Net benefit: $1,750
⚠️ Division 293 Tax: If your income plus concessional contributions exceed $250,000, you'll pay an additional 15% tax (total 30%) on the amount over $250,000. See the Division 293 section below for details.
Age-Based Rules
| Age |
Concessional Contributions Allowed? |
Work Test Required? |
| Under 67 |
✅ Yes |
❌ No |
| 67-74 |
✅ Yes |
❌ No (changed July 2022) |
| 75+ |
⚠️ Employer only |
N/A |
Non-Concessional Contributions Explained
Non-concessional contributions are after-tax contributions made from your already-taxed income. They're not taxed again when they enter your super fund. The annual cap for 2025-26 is $120,000.
What Counts as Non-Concessional?
- Personal contributions: After-tax money you contribute (without claiming a deduction)
- Spouse contributions: Contributions you make to your spouse's super
- Voluntary contributions: Any additional after-tax contributions
When to Make Non-Concessional Contributions
Non-concessional contributions are useful when:
- You've maxed out your $30,000 concessional cap
- You have a windfall (inheritance, property sale, bonus)
- You're approaching retirement and want to maximize super
- You want to take advantage of the bring-forward rule
- You're over 75 and can't make concessional contributions
Example: Sarah, 45, receives a $200,000 inheritance. She can contribute $120,000 this year as non-concessional, or trigger the bring-forward rule to contribute the full $200,000 (using $120K this year + $80K from future years' caps).
Total Super Balance Test
Your ability to make non-concessional contributions depends on your total super balance on June 30 of the previous financial year:
| Total Super Balance |
Non-Concessional Cap |
Bring-Forward Available? |
| Less than $1.66M |
$120,000 |
✅ Yes ($360,000) |
| $1.66M - $1.78M |
$120,000 |
⚠️ Partial ($240,000) |
| $1.78M - $1.9M |
$120,000 |
⚠️ Partial ($120,000) |
| $1.9M or more |
$0 |
❌ No |
Bring-Forward Rule Explained
The bring-forward rule allows you to contribute up to three years' worth of non-concessional contributions ($360,000) in a single year. This is powerful for people who receive large lump sums or want to maximize super quickly.
How It Works
- Trigger: You trigger the bring-forward by contributing more than $120,000 in a single year
- Access: Once triggered, you have access to the full three-year amount ($360,000)
- Period: The three-year period starts in the year you trigger it
- Lockout: You can't trigger it again until the three-year period ends
Example: Bring-Forward in Action
Year 1 (2025-26): John contributes $250,000, triggering the bring-forward rule. He has $360,000 available over three years.
Year 2 (2026-27): John contributes $100,000. Total used: $350,000. Remaining: $10,000.
Year 3 (2027-28): John contributes $10,000. Total used: $360,000. Bring-forward period ends.
Year 4 (2028-29): John can trigger a new bring-forward period if needed.
Eligibility Requirements
- Age: Must be under 75 at any time during the financial year
- Balance: Total super balance must be under $1.9M on June 30 of previous year
- Not already triggered: Can't be in an existing bring-forward period
Partial Bring-Forward
If your balance is between $1.66M and $1.9M, you get a reduced bring-forward amount:
| Balance on June 30 |
Bring-Forward Amount |
| Under $1.66M |
$360,000 (3 years) |
| $1.66M - $1.78M |
$240,000 (2 years) |
| $1.78M - $1.9M |
$120,000 (1 year only) |
| $1.9M or more |
$0 (no non-concessional allowed) |
⚠️ Important: The bring-forward is triggered automatically when you contribute over $120,000. You don't need to notify anyone, but you must track your usage over the three-year period. Exceeding the $360,000 total results in penalties.
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Division 293 Tax Explained
Division 293 tax is an additional 15% tax on concessional contributions for high-income earners. It applies when your income plus concessional contributions exceed $250,000.
How It's Calculated
Formula: Division 293 tax applies to the lesser of:
- Your concessional contributions, or
- The amount by which (income + concessional contributions) exceeds $250,000
Tax rate: 15% (bringing total tax on those contributions to 30%)
Examples
Example 1: Partial Division 293
- Income: $230,000
- Concessional contributions: $30,000
- Total: $260,000
- Amount over threshold: $260,000 - $250,000 = $10,000
- Division 293 tax: $10,000 × 15% = $1,500
Example 2: Full Division 293
- Income: $270,000
- Concessional contributions: $30,000
- Total: $300,000
- Amount over threshold: $300,000 - $250,000 = $50,000
- But limited to contributions: $30,000
- Division 293 tax: $30,000 × 15% = $4,500
Payment Options
When you receive a Division 293 assessment from the ATO, you can:
- Pay from personal funds: Pay the tax bill directly to the ATO
- Release from super: Request your SMSF release funds to pay the tax
Most people choose option 2 to preserve cash flow, but this reduces your super balance.
Strategies to Minimize Division 293
- Reduce concessional contributions: Contribute less to stay under $250,000 total
- Use non-concessional instead: Make after-tax contributions (no Division 293)
- Spouse contributions: Contribute to lower-earning spouse's super
- Defer income: If possible, spread income across years
- Time contributions: Make contributions in lower-income years
Carry-Forward Contributions
Since July 2018, you can carry forward unused concessional contribution cap amounts for up to 5 years. This allows you to "catch up" on contributions in years when you have extra capacity.
Eligibility
You can use carry-forward contributions if your total super balance is less than $500,000 on June 30 of the previous financial year.
How It Works
Example: Carry-Forward in Action
2023-24: Emma earns $80,000. Employer contributes $9,200 (SG). Unused cap: $30,000 - $9,200 = $20,800
2024-25: Emma earns $85,000. Employer contributes $9,775. Unused cap: $30,000 - $9,775 = $20,225
2025-26: Emma receives a $50,000 bonus. Her super balance is $450,000 (under $500,000 threshold). She can contribute:
- Standard cap: $30,000
- Carry-forward from 2023-24: $20,800
- Carry-forward from 2024-25: $20,225
- Total available: $71,025
Emma salary sacrifices $60,000 from her bonus, staying under her available cap.
Tracking Carry-Forward
The ATO tracks your unused cap amounts automatically. You can view them through:
- ATO online services via myGov
- Your tax return notice of assessment
- Your SMSF administrator
💡 Pro Tip: Carry-forward is excellent for people with variable income (business owners, commission-based workers, contractors) who want to maximize contributions in high-income years.
Contribution Strategies
Strategy 1: Maximize Concessional Contributions
Best for: High-income earners (marginal tax rate 32.5%+)
How:
- Salary sacrifice to reach $30,000 annual cap
- Tax saving: (Marginal rate - 15%) × $30,000
- For 37% tax rate: (37% - 15%) × $30,000 = $6,600 saved annually
Watch out for: Division 293 tax if income + contributions > $250,000
Strategy 2: Bring-Forward for Large Lump Sums
Best for: People receiving windfalls (inheritance, property sale, redundancy)
How:
- Contribute up to $360,000 in one year
- Locks in current contribution caps (protection against future reductions)
- Gets money into tax-advantaged environment immediately
Watch out for: Must be under 75 and have balance under $1.9M
Strategy 3: Spouse Contribution Splitting
Best for: Couples with unequal super balances
How:
- Split up to 85% of concessional contributions to lower-earning spouse
- Balances super between partners
- Maximizes Transfer Balance Cap usage ($2M each = $4M total)
- May improve Age Pension eligibility
Watch out for: Must apply annually, spouse must be under 65 (or 65+ and meeting work test)
Strategy 4: Spouse Contributions for Tax Offset
Best for: People with low-income spouses
How:
- Contribute to spouse's super (non-concessional)
- Receive tax offset up to $540 if spouse earns under $40,000
- Offset phases out between $37,000-$40,000 spouse income
Example: You contribute $3,000 to your spouse's super. Spouse earns $35,000. You receive $540 tax offset (18% of $3,000).
Strategy 5: Downsizer Contributions
Best for: People aged 55+ selling their home
How:
- Contribute up to $300,000 per person ($600,000 per couple) from home sale proceeds
- Doesn't count toward contribution caps
- Home must have been owned 10+ years and been main residence
- Must contribute within 90 days of settlement
Watch out for: One-time opportunity per person, can't be reversed
Strategy 6: Carry-Forward for Variable Income
Best for: Business owners, contractors, commission-based workers
How:
- In low-income years, contribute minimum (build up unused cap)
- In high-income years, use carry-forward to maximize contributions
- Requires balance under $500,000 to access carry-forward
Example: Business owner has 3 lean years ($10K contributions each), then one profitable year. Can contribute $30K + $60K carry-forward = $90K total.
💡 Explore Contribution Scenarios
Our Pro SMSF Suite includes tools to help you model different contribution strategies and their tax implications. These are educational tools—consult your financial adviser or accountant for personalized contribution advice tailored to your circumstances.
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Excess Contributions & Penalties
Excess Concessional Contributions
If you exceed the $30,000 concessional cap, the ATO will:
- Include excess in your assessable income: Taxed at your marginal rate
- Provide a 15% tax offset: To account for the 15% already paid in super
- Charge interest: On the additional tax liability
- Offer release option: You can withdraw the excess (plus earnings) from super
Example: Excess Concessional Penalty
- You contribute $40,000 (excess: $10,000)
- Your marginal tax rate: 37%
- Tax on excess: $10,000 × 37% = $3,700
- Less 15% offset: $3,700 - $1,500 = $2,200
- Plus interest charges: ~$100
- Total penalty: ~$2,300
Excess Non-Concessional Contributions
If you exceed the non-concessional cap (including bring-forward), the ATO will:
- Tax excess at 47%: Unless you withdraw it
- Offer release option: Withdraw excess (plus 85% of associated earnings)
- Associated earnings taxed: At your marginal rate
Example: Excess Non-Concessional Penalty
- You contribute $150,000 without triggering bring-forward (excess: $30,000)
- Associated earnings: $2,000
- Option 1 (leave in super): $30,000 × 47% = $14,100 tax
- Option 2 (withdraw): Withdraw $30,000 + $1,700 (85% of earnings), pay tax on $1,700 at marginal rate (~$630)
- Best choice: Withdraw (saves $13,470)
How to Avoid Excess Contributions
- Track throughout the year: Don't wait until year-end
- Include all sources: Employer, salary sacrifice, personal deductible, multiple funds
- Check ATO online: View your contributions via myGov
- Use contribution tracking tools: Spreadsheets or software to monitor caps
- Communicate with employer: Ensure they know your total contributions
- Be careful with timing: Contributions are counted when received by fund, not when you make them
💡 Pro Tip: If you're close to a cap, make your final contributions early in June to ensure they're processed before June 30. Late contributions may be counted in the next financial year.
Frequently Asked Questions
Q: What are the SMSF contribution limits for 2025-26?
For 2025-26, the concessional (before-tax) contribution cap is $30,000 per year, and the non-concessional (after-tax) contribution cap is $120,000 per year. The bring-forward rule allows up to $360,000 in non-concessional contributions over three years if you're under 75 and haven't triggered the bring-forward in recent years.
Q: What is the difference between concessional and non-concessional contributions?
Concessional contributions are before-tax contributions (employer contributions, salary sacrifice, personal deductible contributions) taxed at 15% in the fund. Non-concessional contributions are after-tax contributions (personal contributions from already-taxed income) not taxed again in the fund. Concessional cap is $30,000/year, non-concessional cap is $120,000/year.
Q: How does the bring-forward rule work?
The bring-forward rule allows you to contribute up to three years' worth of non-concessional contributions ($360,000) in a single year if you're under 75 and your total super balance is below $1.9 million. Once triggered, you have access to the full three-year amount but cannot trigger it again until the three-year period ends. The available amount reduces if your balance is between $1.66M-$1.9M.
Q: What is Division 293 tax?
Division 293 tax is an additional 15% tax (on top of the standard 15%) on concessional contributions for high-income earners. It applies when your income plus concessional contributions exceed $250,000. The tax applies to the amount over $250,000, up to your total concessional contributions. For example, if your income is $270,000 and you contribute $30,000, Division 293 applies to $20,000 (the amount over $250,000), costing an extra $3,000.
Q: Can I carry forward unused concessional contributions?
Yes, you can carry forward unused concessional contribution cap amounts from previous years if your total super balance is less than $500,000 on June 30 of the previous financial year. You can carry forward unused amounts for up to 5 years. For example, if you only contributed $20,000 in 2024-25, you have $10,000 unused that you can use in 2025-26 (in addition to the $30,000 standard cap), allowing a total contribution of $40,000.
Q: What happens if I exceed contribution caps?
If you exceed the concessional cap, excess contributions are included in your assessable income and taxed at your marginal rate (minus a 15% offset). You can choose to withdraw the excess or leave it in super. If you exceed the non-concessional cap, excess contributions are taxed at 47% unless you withdraw them. The ATO will notify you and give you options to release the excess contributions.
Q: What is the Transfer Balance Cap?
The Transfer Balance Cap (TBC) is the maximum amount you can transfer into tax-free retirement phase (pension mode). For 2025-26, it's $2.0 million per person. This is separate from contribution caps. Amounts above the TBC must remain in accumulation phase where earnings are taxed at 15%. The TBC applies to the total amount transferred to pension phase over your lifetime, not annual contributions.
Q: Can I contribute to my spouse's SMSF?
Yes, you can make spouse contributions to your partner's SMSF. These are non-concessional contributions (after-tax) that count toward your spouse's $120,000 annual cap, not yours. You may be eligible for a tax offset of up to $540 if your spouse earns less than $40,000. Spouse contribution splitting (up to 85% of concessional contributions) is also available to balance super between partners.
Q: What are the contribution rules for people over 67?
For people aged 67-74, you can make voluntary contributions without meeting the work test (changed from July 2022). For ages 75+, you can only make downsizer contributions ($300,000 per person from home sale) and mandated employer contributions. Non-concessional contributions are not allowed after age 75. The bring-forward rule is not available after age 75.
Q: How do I track my contribution cap usage?
You can track your contributions through: (1) Your SMSF annual return and financial statements, (2) ATO online services via myGov, (3) Contribution statements from your SMSF administrator, (4) Your SMSF's contribution tracking system. The ATO tracks all reported contributions and will notify you if you approach or exceed caps. Our Pro SMSF Suite includes contribution tracking tools to help monitor your caps.
Q: What is the downsizer contribution?
The downsizer contribution allows people aged 55+ to contribute up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home. This is in addition to standard contribution caps and doesn't count toward them. The home must have been owned for 10+ years and been your main residence. This is a one-time opportunity per person and must be made within 90 days of settlement.
Q: Can I make contributions while receiving a pension from my SMSF?
Yes, you can make contributions while receiving an account-based pension from your SMSF. The contributions go into your accumulation account (or you can have separate accumulation and pension accounts). This is common for people doing transition to retirement (TTR) or continuing to work part-time while drawing a pension. Normal contribution caps apply.
Q: What is contribution splitting?
Contribution splitting allows you to split up to 85% of your concessional contributions to your spouse's super account. This is useful for balancing super between partners, maximizing the Transfer Balance Cap usage ($2M each), and potentially optimizing Age Pension eligibility. You must apply to split contributions from the previous financial year, and your spouse must be under 65 (or 65+ and meeting work test).
Q: How do personal deductible contributions work?
Personal deductible contributions are after-tax contributions that you claim as a tax deduction, converting them to concessional contributions. You must lodge a 'Notice of intent to claim a deduction' with your SMSF before claiming the deduction. These count toward your $30,000 concessional cap and are taxed at 15% in the fund. This is useful for self-employed people or employees wanting to contribute beyond employer contributions.
Q: What are the penalties for excess contributions?
Excess concessional contributions: Taxed at your marginal rate (minus 15% offset), plus interest charges. Excess non-concessional contributions: Taxed at 47% if not withdrawn. The ATO provides options to release excess contributions to avoid penalties. Repeated excess contributions may result in additional penalties. It's critical to track contributions throughout the year to avoid exceeding caps.
🚀 Stay Compliant with Contribution Tracking
Our Pro SMSF Suite includes tools to help you track contributions, monitor caps, and explore contribution strategies. These tools are for educational purposes to assist with compliance planning—always consult your SMSF administrator or accountant for personalized advice.
Explore Pro SMSF Suite →
⚠️ IMPORTANT DISCLAIMER
This guide provides general information only and does not constitute financial or tax advice. The information is based on our understanding of current Australian superannuation laws as of November 2025, which may change. Contribution caps, tax rates, and eligibility rules are subject to change by legislation.
Before making any decisions about SMSF contributions, you should:
• Consider your personal circumstances, income, and retirement goals
• Seek advice from a qualified financial adviser or tax professional
• Consult with your SMSF administrator or accountant
• Review current ATO guidance and legislation
• Consider the tax implications of different contribution strategies
SuperCalc Pro is a calculator and information tool only. We are not licensed to provide financial or tax advice. Always consult with licensed professionals before making contribution decisions.
Contribution caps and rules are updated annually. Check the ATO website for the most current figures and rules.