Super contribution caps for 2026–27: a guide for business owners
The caps rose on 1 July 2026. For business owners with lumpy income, the carry-forward rules are one of the most useful tools in the tax system.
Published
Business owners rarely have a steady income. A strong year, a business sale or a large capital gain can push income up sharply in one year. Super contributions, timed properly, are one of the few ways to smooth that out legally.
The 2026–27 caps
| Cap | 2025–26 | 2026–27 |
|---|---|---|
| Concessional (before-tax) | $30,000 | $32,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 |
Concessional contributions include employer super guarantee, salary sacrifice and personal contributions you claim a tax deduction for. The cap covers all of them combined.
Carry-forward contributions
If your total super balance was below $500,000 on 30 June of the previous year, you can use unused concessional cap amounts from up to five previous years. For an owner who paid themselves little super during the early years of a business, this can allow a large deductible contribution in a high-income year — such as the year a business or property is sold.
Where we see this work best
The year of a business sale or a large capital gain. Combined with the small business CGT concessions, a deductible carry-forward contribution can materially reduce tax — but the sequencing matters, and the 2027 capital gains changes make the timing of a sale more important.
Non-concessional contributions
After-tax contributions are not taxed on the way in. The bring-forward rule can allow up to three years of contributions at once, depending on your total super balance. Separately, eligible amounts from the small business CGT concessions can be contributed under the CGT cap without counting toward the non-concessional cap.
Division 293
If your income plus concessional contributions exceeds $250,000, an additional 15% tax applies to some or all of the concessional contributions. Even at 30%, contributions can still be tax-effective for many owners.
The new tax on large balances
From 1 July 2026, earnings on balances above $3 million face additional tax. Our explainer on Division 296 sets out how it works.
Common questions
$32,500, covering employer contributions, salary sacrifice and deductible personal contributions combined.
Yes, if your total super balance was under $500,000 at the previous 30 June, you can use unused concessional cap from up to five previous years.
No. It is general information only. Contribution strategies depend on your circumstances and should be considered with personal advice.
Sources
- Australian Taxation Office — key superannuation rates and thresholds (concessional and non-concessional caps 2026–27)
- Accountants Daily — contribution caps set to increase for 2026–27
General information
This article is general advice only and does not take into account your objectives, financial situation or needs. Consider its appropriateness, read the relevant PDS and TMD, and obtain personal advice before acting. Tax commentary is general and not personal taxation advice.
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