Super Contributions explained: Caps, rules and limits

What is a super contribution?

A super contribution is money added to a super fund to build up retirement savings. Contributions can be made by employers, individuals, spouses or sometimes even the Government. They are subject to limits and rules designed to make sure the valuable tax breaks provided to super are limited. Generally speaking, the rules revolve around:

• Your age – because super is primarily designed to build up wealth while you’re working to support you in your retirement, and
• How much you already have in super – because the Government wants to cap the tax concessions provided.

How are super contributions made?

The vast majority of contributions are made by transferring cash into the fund.

There are certain circumstances where you can make a contribution by transferring assets you already own into super instead – for example, listed shares, certain properties, certain managed funds etc. If you want to do this, it’s really important to talk to your accountant or adviser about the transaction first. There are strict rules about the sorts of assets that a super fund can acquire like this.

Sometimes transactions that don’t even “feel like” contributions can be classified as contributions too. Learn more about what is considered a contribution to super

Main contribution types

Most super contributions fall into one of two categories:

You may hear about other types of contributions – downsizer contributions, government co-contributions, CGT exempt contributions and more.  These are explained below.

Super contribution caps – a simple overview

Contribution caps are simply limits on the amount of contributions which receive the best tax treatment. It’s not illegal to make contributions that are bigger than your caps but most people try to avoid it – we’ll cover the consequences of going over your cap a bit later. 

The basic contribution limits for 2025/26 and 2026/27 are: 

The limits apply to the total of your contributions even if they come from several sources. For example, if you have two jobs, the limit on your employer contributions is $30,000 in total for 2025/26, not $30,000 from each job. Similarly, if you’re making personal contributions and your spouse is also contributing for you, the combined limit is $120,000 p.a. However, your spouse also has their own $120,000 limit if they are still allowed to contribute to superannuation.  

What happens if you exceed the caps?

These days, if you go over the caps it’s often not a disaster. (The rules on this particular issue have changed several times since the current caps were first introduced in 2007 so don’t be surprised if you’ve made this mistake before and had a much worse outcome.)

The exact treatment is different depending on which cap you’ve exceeded. We’ve explained the different treatments here: What happens if you exceed the contributions limits?

Importantly, sometimes you will end up taking money out of super if you exceed a contribution cap. There is a specific process for this. For example, even if you have an SMSF you can’t simply transfer money back out of super when the ATO tells you about exceeding a cap. You will have to notify the ATO you intend to do this via myGov first and then wait for them to issue a special notice known as a “release authority” to your SMSF.

Special types of super contributions

There are some types of contribution that aren’t counted towards these normal caps. Some have no cap at all while others have their own special cap.

Government co-contributions

These are contributions made by the Government to add even more to your super when you make your own non-concessional contributions. Not everyone is eligible for these – you generally need to be working, not earning too much and not have too much in super. The maximum co-contribution amount in a single year is $500.

Downsizer contributions

These are special contributions only available to people aged over 55 who sell their home. There are a number of terms and conditions to meet but the cap on downsizer contributions is $300,000 per person (so a combined $600,000 for a couple) and might be lower if the proceeds from the sale are less. Downsizer contributions are only valid if a special form is provided to the super fund trustee before the contribution is made.

CGT small business contributions

If you sell a business and meet certain conditions, there are some special rules that allow you to make an extra super contribution. These contributions are often called “CGT small business contributions” and have their own special cap. In 2025/26 this is $1,865,000 but it increases virtually every year. How much of this cap you are able to use will depend on things like the size of your capital gains on selling your business and which particular capital gains tax exemption you’re able to use.

Personal injury contributions

Certain people who receive a pay out because they are badly injured can contribute some or all of that payout to super. The cap is simply the amount of the payout they received. As with all the other special types of contribution there are strict rules to follow.

In every other sense, Government co-contributions, downsizer contributions, CGT small business contributions and personal injury contributions are just like non-concessional contributions. They are not tax deductible to you (or the Government) when you make them and they are not taxed when received by the fund.

Age based rules

The rules around who can contribute to super (or have contributions made for them) change as you age.

1 To satisfy the work test you need to do paid work (which can include work in your own business) for at least 40 hours in a 30 day period during the financial year. Some people get a special exemption from this test – if they had less than $300,000 in super at the end of the previous year and also met the work test in that year (but haven’t met it this year). You can only use this special exemption once.

You may also be interested in...

• What is considered a contribution to super?
• What happens if you exceed the contribution caps?

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.