As we settle into this new financial year, The SMSF Accountant provides a concise breakdown of the updated superannuation rates, contribution caps, and other super taxes and thresholds.

Super Guarantee Rate

The Super Guarantee Rate was raised to 12% as at 1 July 2025 and remains at 12% for this 2027 financial year.  A reminder that from 1 July 2026, the ATO introduced Payday Super – which increases the frequency of employer superannuation contributions from quarterly to each pay cycle.  For more information, please refer to our specific articles on this topic – both for SMSF’s and Small Businesses.

Concessional Contributions Cap

As at 1 July 2026, the Concessional Contributions Cap has been increased to $32,500.

Concessional Contributions include employer contributions (both superannuation guarantee and salary sacrifice) and personal contributions claimed as a tax deduction.

If your Total Super Balance is less than $500,000 as at 1 July and you have unused concessional cap amounts from the previous 5 years, you may be eligible to utilise these amounts by way of catch-up concessional contributions.  Check out our article or get in touch for further assistance.

Non-Concessional Contribution Cap

The Non-Concessional Contribution Cap has also been increased at 1 July 2026 to $130,000.  These contributions are made from post-tax income – and are not taxed as they enter your superannuation fund.

Subject to eligibility criteria based on your age and total superannuation balance, you may be able to “bring forward” up to two future years of this cap.  Known as the bring-forward arrangement, it allows you to make a much larger contribution in a single year.  To ensure your eligibility, please contact us. Further information can be found in our article.

General Transfer Balance Cap

The Transfer Balance Cap is the lifetime limit on the total amount of superannuation which can be moved into retirement phase.

The General Transfer Balance Cap has increased to $2.1m as at 1 July 2026.  This limit is for individuals who are starting their first retirement pension.

Individuals who had previously commenced a retirement phase pension may have received a proportional indexation to their Personal Transfer Balance Cap as at 1 July 2026.  This means they may have the availability to commence an additional pension in their Fund.  We can advise you on your personal cap space by reviewing your Transfer Balance Account Report and transactions.  Please contact us if you require any assistance.

Minimum Pension Drawdowns

A reminder that minimum pension amounts must be withdrawn from your Fund by 30 June 2027.  Such pension payments must be withdrawn in cash and meet the minimum standards as set by the ATO.  These percentages are based on your age and pension account balance as at 1 July 2026.

Additional taxes on Superannuation income

Division 293 is an additional tax of 15% applied on concessional contributions for high-income earners.  It applies if your adjusted taxable income (including concessional contributions) is greater that the threshold of $250,000.

The ATO issues the assessment to the individual, who may elect to release the funds from their superannuation fund for payment of this tax.

Division 296 is a new tax applied on superannuation earnings for individuals with a Total Super Balance (TSB) exceeding $3m.  This tax commences on 1 July 2026 and levies an extra 15% tax on earnings for balances between $3m and $10m and a further 10% tax (totalling 25%) on earnings for balances greater than $10m.

A significant change from the initial draft legislation is that this tax is no longer applicable to unrealised capital gains.  Only realised capital gains will be included in the calculation.  More details will follow shortly on this new tax, including the opportunity for any Funds to opt in on cost base adjustments specifically for Div 296 calculations.

The ATO will issue these assessments to the individual, who may elect to release the funds from their superannuation fund for payment of this tax.

Other Super rates and thresholds

For any other specific superannuation rates or thresholds, such as the LRBA safe-harbour interest rates, please contact Diana to discuss.

Other changes applicable to SMSFs

Please refer to our recent article regarding the changes to the LRBA space for residential property in SMSFs.  These changes were brought about via the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026.

Also in this Act, the Government introduced new negatively gearing limits for residential property investments.  This measure starts at 1 July 2027, however, does not impact SMSFs, as complying superannuation funds are explicitly excluded.