Grow Your Super, Grow Your Future
A guide to concessional and non-concessional super contributions — and why making them could be one of the smartest financial moves you make this year.
Superannuation remains one of the most tax-effective ways to build wealth for retirement in Australia. Yet every year, thousands of Australians miss out on valuable tax savings, government incentives and compound growth simply because they don’t make the most of their contribution opportunities before they expire. This guide explains the two main ways you can add to your super — concessional (before-tax) and non-concessional (after-tax) contributions — and the real benefits each can offer you.
| $32,500 Concessional cap per person, per year (2026–27) | $130,000 Non-concessional cap per person, per year (2026–27) | $390,000 Bring-forward option up to 3 years in one hit |
BEFORE-TAX CONTRIBUTIONS
Concessional Contributions (CC)
Concessional contributions are made from your before-tax income. They include your employer’s Superannuation Guarantee (SG) payments, any salary sacrifice you arrange with your employer, and personal contributions you claim as a tax deduction. Instead of being taxed at your marginal rate — up to 47% including the Medicare levy — these contributions are generally taxed at just 15% inside your super fund.
Why make concessional contributions?
- Pay less tax today. Salary sacrifice or claim a deduction for personal contributions and reduce the income tax you pay this financial year, while directing more money toward your retirement.
- Keep more of what you earn. Redirecting income into super at a 15% contributions tax rate (rather than your marginal rate) means more of every dollar you earn ends up working for you, not the tax office.
- Catch up on missed years. If your total super balance is under $500,000, you can carry forward unused concessional cap amounts from the last five financial years — useful if you took time out of work, run a business with irregular income, or received a windfall you’d like to shelter from tax.
- Let compounding do the work. Contributions inside super are invested and taxed concessionally on earnings (up to 15%, and potentially less), so the earlier you contribute, the longer your money has to compound.
- Smooth out a high-income year. If you’re a business owner or self-employed, personal deductible contributions let you build retirement savings and manage your taxable income in the same move — particularly valuable in a high-earning year.
Good to know
The general concessional contributions cap is $32,500 for the 2026–27 financial year. If your income plus concessional contributions exceeds $250,000, an additional 15% Division 293 tax applies to contributions above that threshold — but even then, most high-income earners still come out ahead compared with paying full marginal tax rates on the same income.=
AFTER-TAX CONTRIBUTIONS
Non-Concessional Contributions (NCC)
Non-concessional contributions are made from money you’ve already paid tax on — savings, an inheritance, proceeds from selling a property or business, or simply money sitting in a bank account earning little. Because no tax was deducted going in, these contributions aren’t taxed again when they enter your super fund.
Why make non-concessional contributions?
- Move savings into a lower-tax environment. Once inside super, your money is generally taxed at a maximum of 15% on earnings in the accumulation phase, and can be tax-free in retirement phase — a much friendlier environment than most personal savings or investment accounts.
- Make the most of a windfall, fast. Received an inheritance, downsized the family home, or sold an asset? The bring-forward rule lets eligible individuals under 75 contribute up to three years’ worth of non-concessional cap — currently up to $390,000 — in a single year, making it easy to act on a one-off windfall.
- Boost a partner’s balance — and get a tax offset. Contributing to a spouse’s super who earns a lower income can attract a tax offset of up to $540, while also helping even out retirement savings between partners.
- Get a government top-up. If you’re a low or middle-income earner, personal after-tax contributions may attract a government co-contribution of up to $500 — effectively free money added to your retirement savings.
- Support your retirement and estate plans. Growing your super balance through non-concessional contributions builds a nest egg that isn’t as exposed to the risks and probate delays that can affect assets held outside super, and can form part of a broader estate planning strategy.
Good to know
The non-concessional cap is $130,000 for 2026–27. Eligibility depends on your total super balance as at 30 June the previous year — the bring-forward amount reduces on a sliding scale as your balance approaches $2.1 million, and no non-concessional contributions can be made once your balance reaches that cap. Getting the timing and amount right matters, which is where personalised advice makes a real difference.
CC vs NCC at a Glance
| Concessional (CC) | Non-Concessional (NCC) | |
| Source of funds | Before-tax income (SG, salary sacrifice, deductible) | After-tax savings, windfalls, asset sales |
| Tax on entry | 15% (30% above $250,000 income) | None — already taxed |
| 2026–27 annual cap | $32,500 | $130,000 (up to $390,000 via bring-forward) |
| Key benefit | Reduces taxable income now | Grows super in a low-tax environment |
| Best suited to | Employees and business owners wanting a tax deduction | Those with savings, windfalls, or wanting to boost a spouse’s balance |
Why act before 30 June
Contribution caps don’t carry over from one year to the next in the same way — concessional cap space (if unused and eligible) can only be carried forward for five years before it expires, and non-concessional bring-forward eligibility is assessed against your total super balance at a point in time. Thresholds, caps and rules are also reviewed and indexed periodically, so a strategy that works well this year may look different next year. Planning ahead — rather than rushing a contribution in June — gives you the best chance of making full use of what’s available to you.
Let’s build your strategy together
Everyone’s situation is different — your age, income, super balance, family circumstances and retirement goals all shape which contributions make sense for you, and how much you should contribute and when. The team at Your Financial Future can help you work out a contribution strategy tailored to your circumstances, so your super works as hard as you do.
Contact our team today or call us on 03 8910 8940 book a review.
Get in touch: michaels@yourfinancialfuture.com.au
Michael Stratton
Managing Director – Financial Adviser
Your Financial Future Pty Ltd
IMPORTANT INFORMATION
This document is general information only and does not take into account your personal objectives, financial situation or needs. It has been prepared for marketing purposes and should not be relied upon as financial, tax or legal advice. Contribution caps, thresholds and superannuation rules referenced above are current as at the 2026–27 financial year, are subject to change, and may not apply to your individual circumstances. Contributing beyond the relevant caps can result in additional tax. Before making any decision about superannuation contributions, you should consider your own circumstances and seek personal financial advice from a licensed financial adviser.