February’s AWOTE numbers mean the concessional contributions cap will increase to $32,500 from 1 July 2026 (up from $30,000 in 2025/26). This means the non-concessional contributions cap also goes up to $130,000. The new contribution limits and new transfer balance cap will also mean changes to the table of thresholds relevant for bring forward contributions.
January’s CPI release and February’s AWOTE figures mean some big changes from 1 July 2026:
The “bring forward rules” are often a critical aspect of super for those looking to bump up their balances as they near retirement. The key questions are usually:
The new table for 2026/27 will certainly look different to 2025/26
2025/26 |
2026/27 |
||
| Total super balance at 30 June 2025 | Non-concessional contributions cap | Total super balance at 30 June 2026 | Non-concessional contributions cap |
| At least $2m | $nil | At least $2.1m | $nil |
| At least $1.88m but less than $2m | $120k (1 year) | At least $1.97m but less than $2.1m | $130k (1 year) |
| At least $1.76m but less than $1.88m | $240k (over 2 years) | At least $1.84m but less than $1.97m | $260k (over 2 years) |
| Less than $1.76m | $360k (over 3 years) | Less than $1.84m | $390k (over 3 years) |
The truly amazing thing about this table is how different it was just a few years ago. As recently as 2021/22, for example, someone with $1.8m in super couldn’t make non-concessional contributions at all without creating an excess (the threshold was $1.7m). In 2026/27, they could use the three year bring forward rules.
And back in 2021/22, bring forwards were only possible up until age 67 – whereas now this is something that’s possible up until age 75. (Around age 75 can be a tricky time for bring forwards – see our article here Super Contributions After 75: Rules and Deadlines | Heffron about how the rules around that time apply. Note, this uses examples for 2023/24 when the caps and thresholds were different but the same principles apply).
Years like this one are also interesting when it comes to contribution planning.
For example, Len (60) currently has $1.7m in super and was planning to use the three year bring forward rules this year (his super balance was $1.65m back on 30 June 2025). This is one of those years where Len might consider making a $120,000 non-concessional contribution this year and delay his bring forward until next year. As long as his balance is still under $1.84m on 30 June 2026 and he meets all the other requirements for bring forward contributions, he will be able to contribute $390,000 in July 2026.
Even if Len finds his balance is slightly over $1.84m (ruling out a 3 year bring forward), he hasn’t missed out entirely. He will likely have the opportunity to contribute $260,000 in 2026/27. In total, he’ll still contribute $380,000 ($120,000 in 2025/26 and $260,000 in 2026/27) which is more than would be possible if he contributed the maximum amount now ($360,000).
The transfer balance cap has increased rapidly in recent years – in 2022/23 it was only $1.7m and in a few months it will be $2.1m. Many clients who have been locked out of making non-concessional contributions for several years will find themselves “back in the game” next year.
Even those who have fully utilised their personal transfer balance cap might be able to do so. Remember that non-concessional contributions and bring forward thresholds depend entirely on the general transfer balance cap, not the cap for an individual.
For example, Amy started her account-based pension when she retired (aged 64) in December 2022. At the time, her balance was $1.8m and she commenced a pension with $1.7m leaving $100,000 in accumulation phase. These days her balance is $2m (a combination of pension and accumulation accounts). As long as it stays below $2.1m at 30 June 2026, she could make a further $130,000 non-concessional contribution in 2026/27.
Even if she doesn’t want to put any more money into super, this might be a great recontribution opportunity.
In the extreme, she could even withdraw $390,000 in June as part of a recontribution strategy in July. Her total super balance will almost certainly be low enough to recontribute the full amount. She would need to ensure any amount taken from her pension account was treated as a commutation. Even if she did this, the transaction wouldn’t allow her to turn all of her balance (including this new contribution) into a pension as she’d still be limited by her $1.7m personal transfer balance cap. But there would be ways to ensure at least the new contribution ended up in a pension.
The Division 296 tax legislation will change how total super balance is worked out for people with defined benefits. In some cases, it might mean total super balance at 30 June 2026 is much higher than it’s ever been before (or for some people it might be lower). This change would apply even to people who have nowhere near $3m in super and so are not impacted by the new tax, only the change in definition for total super balance.
At this stage there are some crucial things we just don’t know:
Whether the legislation will pass through Parliament,
So for now, watch this space for defined benefit clients and be aware that things may change.
Changes to contribution caps and bring forward thresholds always create opportunities for re-thinking contributions. Given the particular changes this year, the key will be: