Superannuation rules, rates and thresholds continue to change, and the start of a new financial year is a practical time to review your contribution strategy. From 1 July 2026, updated contribution caps create new planning opportunities for SMSF members and who want to build retirement wealth tax-effectively.
1. Increase of Concessional Contribution Cap to $32,500
Concessional contributions are made into your Superannuation Fund from your before-tax income (employer contributions) and after-tax income where you claim a deduction for the contribution in your personal tax return (personal concessional contributions).
From 1 July 2026, the concessional contribution cap increases to $32,500. This cap includes employer super guarantee contributions, pre-tax salary sacrifice amounts and any personal contributions you claim as a tax deduction. The super guarantee rate is 12%, so it is worth checking how much of your cap will already be used by employer contributions before making any additional concessional contributions.
If you are currently in a salary sacrifice arrangement, or you plan to make personal deductible contributions, we recommend speaking to a financial advisor to review your strategy against the new cap and your broader tax position.
2. Non-Concessional Cap Increases to $130,000, With Bring-Forward of up to $390,000
Non-concessional contributions are made from after-tax income and no tax deduction is claimed for these contributions. From 1 July 2026, the annual non-concessional contributions cap increases to $130,000. Eligible individuals may also be able to use the bring-forward arrangement, allowing up to $390,000 to be contributed in one financial year.
Eligibility for non-concessional contributions and the bring-forward arrangement depends on your age, your Total Superannuation Balance at 30 June of the prior financial year, and whether you have already triggered a bring-forward arrangement. We recommend that you speak to a financial advisor before making any non-concessional contributions to ensure you are eligible.
3. Carry Forward Concessional Contributions
If you have not used your concessional contribution cap in full in previous financial years, you may be able to use those unused amounts in the current financial year. This can allow you to make concessional contributions above the standard annual cap, which may be useful if you have additional income, a bonus, a capital gain or cash flow available to boost your retirement savings.
The ATO allows unused concessional cap amounts to be carried forward for up to 5 years . To be eligible to use carry-forward amounts, your Total Superannuation Balance must be less than $500,000 at 30 June of the previous financial year. Any unused amounts are applied from the oldest year first and will expire if not used within the five-year window.
Review Your Contribution Strategy Before Acting
With higher concessional and non-concessional caps available from 1 July 2026, the new financial year is an ideal time to review your contribution strategy. A financial adviser can help you understand how the updated caps apply to your income, tax position, Total Superannuation Balance and retirement goals .
4. Check Your Pension Drawdowns and SMSF Liquidity
For SMSF trustees - if your SMSF is paying an account-based pension, the start of the financial year is an ideal time to confirm the minimum pension amount required for each member. Minimum pension payments are recalculated each year based on the member’s age and account balance, so trustees should ensure the fund’s cash flow and investment strategy can support the required payments.
SMSF members should also consider whether the fund has sufficient liquidity to meet pension payments, tax obligations, administration costs and insurance premiums without being forced to sell investments at an unfavourable time. This is a good opportunity to speak with a financial advisor to review the investments and liquidity of your SMSF.
5. Review SMSF Borrowing, Cash Flow and Investment Settings
For SMSFs with limited recourse borrowing arrangements (LRBAs) or property-related debt, the new financial year is a useful time to review loan terms, repayment capacity and the fund’s overall investment strategy. Borrowing costs, rental income, contribution plans and pension payments should all be considered together.
A review by a finance broker or SMSF specialist can help determine whether refinancing, restructuring or updating the fund’s investment strategy is appropriate. Any changes should be considered in light of the fund’s trust deed, investment strategy and each member’s retirement objectives.
While the Government has recently announced a ban on new LRBA’s for residential property this has not restricted the ability to refinance existing LRBAs or new LRBAs on commercial properties .
Talk to BlueRock’s Wealth, Finance & Superannuation Experts
Whether you have an SMSF or not, superannuation should be a major consideration in your wealth building and retirement planning strategies. It’s never too late to start maximising super and its potential tax benefits, so reach out to our Melbourne-based financial planners or SMSF experts via the form below to learn more about how we can help.
Disclaimer: The information in this article is intended as general information only and should not be considered as advice on any matter and should not be relied upon as such. This information has been prepared without taking into account any individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information before acting or seek advice before making any financial decisions.
