Non-Concessional Contributions in 2026/27: What's Changed and Who's Affected

As we kick off the start of a new financial year, individuals with some extra cash might like to top up their super balance.  But there are two things which might get in their way – they may be too old, or they may already have too much super.

Key Rules for Non-Concessional Contributions in 2026/27

Non-concessional contributions (such as personal after-tax contributions or spouse contributions) need to be made to super ahead of the member’s 75th birthday (28 days after the month in which the member turned 75 to be exact).  There is also a limit on the amount of non-concessional contributions.  This limit is determined by the individual’s total super balance at the previous 30 June.  For the 2026/27 financial year, an individual with a total super balance of $2.1m or more at 30 June 2026 has a non-concessional contributions cap of $nil.  Whereas members with a total super balance of less than $2.1m at 30 June 2026 have a non-concessional contributions cap of $130,000.

Can you use the Bring-Forward Rules in 2026/27?

Members who are considering making non-concessional contributions of more than $130,000 will need to check they are able to use the bring forward rules.  Again, age matters.  Firstly, they will need to be age 74 or less on 1 July 2026.  Next, they will need to see if they can make extra non-concessional contributions over either a two or a three year period. Again, this is determined by the member’s total super balance:

• Those with a total super balance at 30 June 2026 of $1.84m or more but less than $1.97m can make non-concessional contributions over two years of up to $260,000,
• Those with a total super balance of less than $1.84m can make non-concessional contributions over three years of up to $390,000.

Strategy Considerations for Non-Concessional Contributions

If possible, it is always best to “use up” the cap in full in the first year.  If contributions are to be made over more than one financial year, the member will need to ensure their total super balance remains under the general transfer balance cap (currently $2.1m) at the start of the beginning of each remaining financial year.

Does the Member’s Personal Transfer Balance Cap affect Non-Concessional Contributions?

A common misconception by older individuals is that they can no longer make non-concessional contributions because they have already used up their personal transfer balance cap (the lifetime limit on the amount of super they can transfer into a tax-free retirement phase pension).  But this isn’t relevant when determining whether they are able to make non-concessional contributions.  Provided they are young enough and their total super balance is less than the general transfer balance cap, they are not excluded.  It just means they won’t be able to commence new retirement phase pensions, without stopping all or some of an existing retirement phase pension first.

Can you re-qualify to make Non-Concessional Contributions?

Since we have had a combination of a steady stream of indexation (the general transfer balance cap has increased by over 20% in the last 5 years), along with members steadily withdrawing benefits or experiencing some decline in investment returns, it is definitely worth checking whether clients who previously had “too much” in super, have scope to make non-concessional contributions again. 

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