Following the recent release of the December 2025 quarter average weekly ordinary times earnings (AWOTE) the annual concessional contribution (CC) cap will increase from $30,000 to $32,500 from 1 July 2026. The annual non-concessional contribution (NCC) cap will also increase to $130,000.

When considering contribution opportunities some individuals may have higher caps due to the carry forward CC rules or the NCC bring forward rules, while others with higher super balances may have a reduced or nil NCC cap. This will depend on your total superannuation balance (TSB) at the prior 30 June.

Concessional contributions

Concessional contributions are pre-tax contributions and can include compulsory superannuation guarantee (SG), voluntary salary sacrifice contributions and personal deductible contributions.

If your SG contributions are below your cap, you may be able to reduce your annual tax bill by making either salary sacrifice or personal deductible contributions. You may also have access to any unused concessional cap from the prior 5 years if your TSB was below $500,000 on the prior 30 June.

Non-concessional contributions

Non-concessional contributions are post-tax contributions. Although there typically isn’t an immediate tax saving on NCCs the superannuation accumulation (pre-retirement) tax rate of 15% is typically lower than many people’s marginal tax rate and the tax rate on superannuation earnings and drawdowns may be tax-free in retirement (subject to a pension transfer balance cap of $2,100,000 from 1 July 2026).

It can also be possible to bring forward 2 years of your NCC contribution cap and contribute 3 years at one time ($390,000 from 1 July 2026). However, the rules are complex and your TSB and any prior NCC contributions in the current and prior two financial years need to be considered.

There may be NCC opportunities this financial year if your TSB was below $2,000,000 on 30 June 2025.

If you would like to understand how superannuation contributions may reduce your current and future tax bill, please reach out to your accountant or financial adviser.