Recent data released by the Australian Bureau of Statistics confirms that several important superannuation limits will increase from 1 July 2026 due to indexation.

Transfer Balance Cap (TBC)

From 1 July 2026, the maximum amount of superannuation that can be transferred into a tax-free retirement pension account will increase to $2.1 million (up from $2 million).

If you have not yet started a retirement pension, you will be able to use the full $2.1 million cap when you do so.

However, if you have already started a pension, you may only receive part of the increase. This is because your personal cap increases based on how much of the cap you have already used.

If you have already used your full cap before 1 July 2026, you will not receive any increase.

Important: Existing pensions with balances exceeding the cap (due to investment growth) do not need to be reduced or recalibrated; the TBC only limits new transfers into retirement phase.

Contribution Caps

The limits on how much can be contributed to super each year will also increase from 1 July 2026.

Concessional contributions (before-tax contributions such as employer super and salary sacrifice) will increase to $32,500 per year (up from $30,000).

Non-concessional contributions (after-tax contributions) will increase to $130,000 per year (up from $120,000).

Because the non-concessional cap is linked to the concessional cap, it increases automatically when the concessional cap increases.

Bring-Forward Rule Changes

The increase in these limits also affects the thresholds that determine:

-    when someone can use the three-year 'bring-forward' rule for non- concessional contributions, and

-    when their non-concessional contribution limit reduces to zero.

These updated thresholds are shown in the table below.

Important considerations

The increase in the contribution caps means that larger super contributions can be made, provided the individual is eligible.

For people who previously could not make non-concessional contributions (NCCs) because their total super balance exceeded the limit (which is $2,000,000 for the 2025–26 financial year), the increase in this threshold to $2,100,000 from 1 July 2026 may allow them to make additional NCC contributions in the 2026–27 financial year.

However, if someone has already triggered the bring-forward rule, the increase in the caps will not change the amount they have already locked in, nor will it extend the time remaining in their current bring-forward period.

For this reason, it is important to carefully consider whether to trigger a bring-forward period before 1 July 2026.

From 1 July 2026, employers must pay superannuation guarantee (SG) contributions on payday, ensuring funds reach employees' super funds like SMSFs within seven business days. This shifts from the old quarterly system, aiming to cut underpayments and boost retirement savings. For SMSF trustees, this means contributions for yourself, family, or employees will arrive much more often—weekly, fortnightly, or monthly—requiring better cash flow and admin planning.

Furthermore, late lodgement of SMSF annual returns carries heightened risks under Payday Super changes effective 1 July 2026. The ATO may remove non-compliant SMSFs from the Super Fund Lookup (compliance register), blocking employers from paying contributions into the fund. This directly threatens receipt of frequent SG payments, as trustees must ensure the SMSF remains listed to avoid contributions being rejected or redirected. SMSF trustees should prioritise timely lodgements to maintain register status.

Additionally, employers that rely on the ATO Small Business Superannuation Clearing House (SBSCH) should note that the SBSCH will close from 1 July 2026, requiring a transition to an alternative clearing house or payroll solution. Click Here for further information.

This article is for general information only. It does not constitute financial product advice and has been prepared without taking into account any individual’s personal objectives, situation or needs. It is not intended to be a complete summary of the issues and should not be relied upon without seeking advice specific to your circumstances.