Last updated on May 26, 2026
What Is the Cap for Non-Concessional Contributions in 2026?
The cap for Non-Concessional Contributions in the 2027 financial year is $130,000 per annum up from $120,000 per annum which was the cap for both the 2025 and 2026 financial years. This cap is per member and involves the contributing of after-tax dollars as opposed to concessional contributions which are before tax contributions, also known as tax deductible contributions. Non-Concessional contributions have much higher caps than concessional contributions and can be useful for members who have low balances when approaching retirement but large personal cash reserves they can use to contribute such as upon the sale of a property or business.
This blog explains what the current limit is, what eligibility criteria must be considered and when the bring-forward rule may apply which can materially increase the amount that can be contributed in the current year but at the cost of being able to contribute in future years.
Why does the Non-Concessional Contribution Cap Change?
A common question we get from clients is What is the cap for Non-Concessional Contributions in 2026? This is because the caps can change year on year as the ATO tries to keep them in line with changes to AWOTE which is the Average Weekly Ordinary Times Earnings. This measure is used to attempt to keep the cap in line with inflation in the wage rate of the average employee wages.
Understanding Non-Concessional Contributions
Non-concessional contributions are after-tax contributions paid into superannuation which means it is effectively just moving a members cash savings from their personal name/bank account to the name of the SMSF and its bank account. Keep in mind that there is no change of mind options with superannuation and we cannot take those funds back to the member once contributed until the member meets a condition of release such as retirement. These are very different from concessional contributions such as the 12% your employer contributes on your behalf or salary sacrifice contributions which reduce your personal tax while they are taxed (generally at 15%) within the superannuation system.
Who Can Use the Non-Concessional Contributions Cap?
Like most things in the Self-Managed Super Fund space there are additional eligibility criteria imposed by the ATO as they try to bring their notion of fairness into the sector. In order to prevent members who already have large member balances from putting more funds into this concessionally taxed environment the ATO has made the eligibility dependent on your Total Super Balance. Eligibility to make non-concessional contributions. In order to contribute any Non-Concessional contributions to your SMSF in 2027 financial year your total super balance (per member, not per fund) will need to be below 2.1 million as at the 30th June 2026.
The Bring-Forward Rule for NCC
The bring-forward rule allows members to contribute up to three years worth of non-concessional contributions in a single year effectively using up those future years thresholds early but, as always, these are subject to limits.
If your total super balance was under $1.76 million at 30 June 2025, you may be able to contribute up to $360,000 being three years of NCC at once. If your balance was between $1.76 million and $1.88 million, the maximum contribution reduces to $240,000. If your balance was between $1.88 million and $2million, the maximum contribution is limited to $120,000. If your balance was $2 million or more, you cannot make any non-concessional contributions.
Note this will change for future years due to indexation with the following table showing the current figures:
| Bring-forward cap first year (applying to 2025-26 and later years) | ||
| Total super balance on 30 June of previous year | Non-concessional contributions cap for the first year | Bring-forward period |
| Less than $1.76 million | $360,000 | 3 years |
| $1.76 million to less than $1.88 million | $240,000 | 2 years |
| $1.88 million to less than $2 million | $120,000 | No bring-forward period, general non-concessional contributions cap applies |
| $2 million or more | nil | Not applicable |
Non-Concessional Caps Versus Concessional Caps
Concessional contributions are ones which are not taxed in your individual name but are taxed in the SMSF, usually at the standard 15% super rate. These contributions include employer contributions which is the 12% required on most Australian wages along with personal contributions whether via salary sacrifice or just personally contributed to the fund with a Notice of Intent to Claim form then completed. The concessional contribution cap for the 2026 financial year is $30,000 and includes all the forms of contributions listed above. For more information about concessional contributions and the carried forward contribution options that may be available to you checkout:
What Happens If You Exceed the Non-Concessional Cap?
It is important to always work out your cap before making any contribution, which is a key area your SMSF Accountant is able to assist with. However, if this has already occurred due to a mistake or poor advice the tax office will send you a letter of determination explaining your options and you can then select a pathway forward.
Option 1 is to release the excess amount from your super fund plus 85% of the associated earnings in relation to the excess amount. If you choose this the ATO will amend your personal income tax assessment to include those earnings along with a 15% non-refundable tax offset on those earnings.
Option 2 if you can’t release the funds (such as when they are tied up into an illiquid asset) or if you choose not to release them for some other reason (or fail to respond in a timely manner) they will issue you an Excess Non-Concessional Contributions (ENCC) tax assessment. This is at the highest marginal tax rate including Medicare Levy which is currently 47% and is paid from your Super Fund directly except in the case of a defined benefit fund which may be unable to make the payment, in which case it lands on you personally to pay the ENCC tax.
Is the Cap the same for SMSFs & Industry Funds?
Yes, the Cap is the same for SMSFs and Industry Funds along with retail funds and public sector funds. The same caps apply to the entire superannuation industry to negate the benefit of contributing to different funds and rolling them to other funds.
Strategic Uses of Non-Concessional Contributions
Once you are comfortable you have met the eligibility criteria and other rules, then making non-concessional contributions can be an effective strategy for moving personal wealth into an SMSF to reduce the long-term tax on the earnings and prepare for retirement. Financial Planners may also recommend it for estate planning and age-pension access reasons as well as pure tax considerations although tax minimisation tends to be the key motivator.
If you need any help understanding your options to put additional contributions into your SMSF then reach out to one of our friendly team today.