What Are the Differences Between Concessional Contributions (CC) Cap and Non-Concessional Contributions (NCC) Cap

Understanding Superannuation Contribution Caps — 2026-2027 Financial Year

If you are interested in boosting your superannuation savings, you may want to know the difference between concessional contributions (CC) cap and non-concessional contributions (NCC) cap. Here is an explanation of these terms and how they affect your super.

What are Concessional Contributions?

Concessional contributions are contributions made to your super fund before tax. They include employer contributions (including salary sacrifice payments) and personal contributions that you claim as a tax deduction.

The $32,500 Concessional Contributions (CC) Cap is NOT all for you to use! Super Guarantee (SG) also uses up that cap. The Super Guarantee rate for the 2026-2027 financial year remains 12% of ordinary time earnings.

Concessional contributions are taxed at 15% in your super fund unless you exceed your CC cap or have a high income. The CC cap increases from $30,000 to $32,500 from 1 July 2026. This cap applies to the total of all your super accounts across different funds. If you have unused CC cap from previous years, you may be able to carry it forward and make additional concessional contributions, depending on your total super balance. The treatment of excess CCs is as follows:

• All excess CCs taxed at marginal rates (less 15% offset)
• Individuals have the option to withdraw the excess amount from super (net of 15% fund tax)
• Excess concessional contributions charge does not apply to excess concessional contributions from 1 July 2021

Carry-Forward Concessional Contributions

From 1 July 2018, unused CC cap can be carried forward for up to 5 financial years. Your individual CC cap is increased if:

• Actual CCs are less than the standard CC cap
• You have unused CC cap available from any or all of the 5 prior financial years, and
• Your total superannuation balance is less than $500,000 at 30 June of the prior financial year

Important note for FY2027: From 1 July 2026, any unused concessional contributions from 2020-21 or earlier will no longer be available to use. Individuals who have a total super balance on 30 June 2026 below $500,000 could have a potential concessional contribution cap of up to $175,000 in 2026-27, comprising the 2026-27 cap of $32,500 plus unused amounts from 2021-22, 2022-23, 2023-24, 2024-25, and 2025-26.

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What are Non-Concessional Contributions?

Non-concessional contributions (NCC) are contributions made to your super fund from your after-tax income. They include personal contributions that you do not claim as a tax deduction, spouse contributions, contributions for a child (apart from employer contributions), amounts transferred from an overseas pension scheme that are not taxable in the fund, and excess CCs (grossed up to include the 15% fund tax), excluding the amount of excess CCs which are withdrawn. Non-concessional contributions are not taxed in your super fund, unless you exceed your NCC cap.

NCC cap exemptions include:

• Government co-contributions and low-income superannuation tax offset
• Downsizer contributions (within limit — remains $300,000 per person)
• CGT small business concession contributions (within limit)
• Personal injury contributions
• Contributions relating to superannuation benefits accessed under the COVID-19 early release of super rule (when made from 1 July 2021 and by 30 June 2030)

The NCC cap increases from $120,000 to $130,000 from 1 July 2026. Individuals with a total super balance of $2.1 million or more cannot make non-concessional contributions.

Bring-Forward Rule

If you are under 75 years of age, you may be able to use the bring-forward rule to make up to three times the annual NCC cap in a single year. The maximum bring-forward amount increases from $360,000 to $390,000 from 1 July 2026.

The following thresholds apply for bring-forward contributions triggered in 2026-27, based on your total superannuation balance at 30 June 2026:

• Less than $1.84 million — up to $390,000 over 3 years
• $1.84 million to less than $1.97 million — up to $260,000 over 2 years
• $1.97 million to less than $2.1 million — $130,000 only (no bring-forward)
• $2.1 million or more — NCC cap not available

Bring-forward is applied from 1 July of the first financial year in which NCCs exceed $130,000. Importantly, individuals who triggered the bring-forward rule in 2024-25 or 2025-26 do not benefit from the new indexation and remain subject to the caps that applied when their bring-forward period commenced.

Contribution acceptance rules mean the contribution can only be accepted by the superannuation fund up to 28 days after the month the member turns age 75.

The treatment of excess NCCs is as follows:

• Excess amounts not withdrawn from superannuation are taxed at 47%
• Individuals have the option to withdraw excess amounts and 85% of associated earnings from super, with the total amount of associated earnings taxed at marginal rates less a 15% offset

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Transfer Balance Cap

The general Transfer Balance Cap — the maximum amount you can hold in tax-free retirement phase — increases from $2.0 million to $2.1 million from 1 July 2026.

Division 293 Tax

The Division 293 threshold remains at $250,000 for 2026-27. Individuals whose combined income and concessional contributions exceed this level pay an additional 15% tax on their concessional contributions.

Division 296 Tax — New from 1 July 2026

Division 296 represents a significant structural change to the taxation of superannuation earnings. Under Division 296, an additional personal tax applies to superannuation earnings attributable to the portion of an individual’s Total Super Balance that exceeds $3 million. The legislation has passed both houses of Parliament and applies from 1 July 2026.