01 Aug The 2025–26 Super Contribution Rules: What’s Changed and What It Means for You

The 2025–26 Super Contribution Rules: What’s Changed and What It Means for You

• The concessional contributions cap remains at $30,000 for FY2025–26.
• The non-concessional contributions cap remains at $120,000 (or up to $360,000 using the bring-forward rule).
• The Super Guarantee (SG) has increased from 11.5% to 12% as of 1 July 2025.
• You may be able to carry forward unused concessional cap amounts from the past five years if your super balance is under $500,000.
• Government co-contributions of up to $500 are available for eligible low-income earners.
• Strategies like salary sacrifice, personal deductible contributions, spouse contributions, and co-contributions can help boost your super and reduce tax.

What’s New This Financial Year?

There are two main updates for the 2025–26 financial year:

1. The concessional contributions cap remains at $30,000, allowing you to contribute more to super at the concessional 15% tax rate.
2. The Super Guarantee (SG)—your employer’s compulsory super contribution—has increased from 11.5% to 12% of your ordinary time earnings. This helps your retirement savings grow faster without lifting a finger.

Why It Matters

Superannuation continues to be one of the most effective long-term investment vehicles in Australia due to its tax advantages and compounding growth.

But many Australians don’t take full advantage of the available contribution limits. Whether it’s due to busy lives, confusion around the rules, or a lack of planning, unused caps represent missed opportunities to grow your future retirement nest egg.

Strategies to Maximise Your Super This Year

1. Salary Sacrifice

Ask your employer to direct some of your pre-tax salary into your super fund. This can reduce your taxable income and boost your retirement savings.

Example: If you’re in the 37% tax bracket, salary sacrificing $10,000 could save you over $2,000 in tax while investing more into your future.

2. Personal Deductible Contributions

You can make a personal after-tax contribution and claim a tax deduction. This is great for self-employed people or those who receive bonuses or other one-off income.

Just remember to notify your fund with a “Notice of Intent to Claim a Deduction.”

3. Carry-Forward Contributions

If your total super balance is under $500,000, you may be able to “catch up” on unused concessional caps from the previous five years (dating back to 2018–19).

This is especially useful if you’ve had a high-income year or received a windfall.

4. Spouse Contributions

If your spouse earns under $40,000, you may be eligible for a tax offset of up to $540 by contributing to their super. This helps build retirement savings together and can reduce your tax bill.

5. Government Co-Contribution

If you earn less than $58,445, you may be eligible for a government co-contribution of up to $500 by making a personal after-tax contribution.

Example: If you earn $42,000 and contribute $1,000 after tax, the government may contribute $500 to your super fund. It’s essentially a 50% return.

A Note on Non-Concessional Contributions

These are personal contributions made from after-tax income and not claimed as a tax deduction. The annual cap is $120,000, or up to $360,000 over three years if you’re under 75 and meet the eligibility rules.

This is a common strategy for people who receive an inheritance or sell an investment property and want to boost their super balance tax-effectively.

Final Thoughts

With SG increasing and contribution caps holding steady, now is the time to review your super strategy and make sure you’re on track for your future retirement goals.

But keep in mind—there are important eligibility criteria, balance thresholds, and timing rules that apply, especially when using carry-forward or bring-forward strategies, or qualifying for the co-contribution.

We’re here to help you navigate the rules and make the most of your personal situation. Reach out to FinPeak Advisers for a tailored strategy that works for you.

Important information and disclaimer

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide.

FinPeak Advisers ABN 20 412 206 738 is a Corporate Authorised Representative No. 1249766 of Spark Advisers Australia Pty Ltd ABN 34 122 486 935 AFSL No. 458254 (a subsidiary of Spark FG ABN 15 621 553 786)