SUPERANNUATION SNAPSHOT 2025–2026
Stay Ahead. Stay Informed.
The 2025–2026 financial year brings key updates to Australia’s superannuation rules. Whether you’re contributing for the first time, catching up on unused caps, or helping a spouse boost their balance, understanding these changes can help you get the most from your super.
Contribution Limits & Strategies
- Concessional Contributions Cap: $30,000/year
- Includes employer SG and personal deductible contributions.
- Exceeding the cap? You’ll be taxed at your marginal rate plus Medicare, with a 15% offset.
- Excess not withdrawn also counts toward your non-concessional cap.
Carry-Forward Concessional Cap
Haven’t maxed your concessional contributions in previous years?
- If your super balance is under $500,000 (as at 30 June last year), you may carry forward unused cap space for up to 5 years.
- The ATO automatically applies this if you go over the standard cap.
Non-Concessional Contributions (NCC)
- Annual NCC Cap: $120,000
- Only available if your total super balance is below $2 million.
- Exceed the cap? You must release the excess (plus 85% of associated earnings) or pay top marginal tax on the earnings.
- Bring-Forward Rule: Up to $360,000 over 3 Years
Eligibility depends on your total super balance:
| Super Balance | Max NCC Cap |
| Less than $1.76m | $360,000 |
| $1.76m – $1.88m | $240,000 |
| $1.88m – $2m | $120,000 |
| Over $2m | Not eligible |
- Must be under 75 on 1 July to trigger the bring-forward rule.
Work Test & Exemptions
Work Test; Required for those 67 or older who want to claim a tax deduction
- Must work 40 hours in a consecutive 30-day period.
Work Test Exemption; Haven’t worked recently but still want to contribute?
- One-time exemption available if super balance is under $300,000 and you met the work test in the previous year.
Other Super Opportunities
- Superannuation Guarantee (SG): 12%
- Applies to income up to $62,500 per quarter ($250,000 annually).
- Government Co-Contribution: Up to $500
- Contribute $1,000 after-tax and get a boost from the government (if eligible):
- Full $500 if income is below $47,488
- Scaled down to $0 at $62,488
- You must be under 71, submit a tax return, and earn 10%+ of income from employment.
Spouse Contributions: Tax Offset Up to $540
- Get a tax break for helping your spouse save for retirement:
- Full offset for incomes under $37,000
- No offset if spouse earns over $40,000
- Spouse must be under 75.
Super Splitting; Share your super:
- Split up to 85% of concessional contributions, within cap limits.
- Only allowed from the previous financial year, and only if spouse is under 65 and hasn’t retired.
Transfer Balance Cap: $2 Million
- This is the maximum amount that can be used to start a retirement income stream (e.g. account-based pension).
- If you’ve used your full personal cap, no indexation applies.
- A credit/debit system tracks your usage across your lifetime.
These updated super rules create new opportunities to boost your retirement savings — but also new traps to avoid. The right strategy depends on your age, income, and super balance.
Need help tailoring your contributions? Let’s review your situation and ensure you’re making the most of your super in 2025–2026.
General advice disclaimer General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC and VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement for this purpose
