From 1 July 2026, you can put more into super each year. The concessional (before-tax) cap rose from $30,000 to $32,500. The non-concessional (after-tax) cap rose from $120,000 to $130,000.
That extra room matters if you run a business. Your income often moves around from year to year, and super is one of the more tax-effective places to park a good year. Here’s what changed and how to think about using it.
The two caps, plainly
There are two ways money goes into your super, and each has its own annual limit.
Concessional contributions are before-tax money. This covers the compulsory super your business pays you, salary sacrifice, and personal contributions you claim a tax deduction for. The cap is now $32,500 a year.
Non-concessional contributions are after-tax money, so contributions you make from savings you’ve already paid tax on and don’t claim a deduction for. The cap is now $130,000 a year.
The jump isn’t huge, but an extra $2,500 in the concessional cap and $10,000 in the non-concessional cap gives you more scope to build super over time.
Why concessional contributions can cut your tax
Concessional contributions are generally taxed at 15% inside your super fund. For a lot of business owners, that’s well below the marginal tax rate you’d pay if the same money landed in your personal income.
So if you’ve had a strong year and you’re sitting in a higher tax bracket, directing some of that income into super as a concessional contribution can be tax-effective. You get money working toward retirement, and it’s taxed at a lower rate along the way.
There’s a catch worth knowing. Some people can also carry forward unused concessional cap from earlier years, which lets you make a larger deductible contribution in a single year. Whether that’s available to you depends on your total super balance and how much cap you’ve actually used, so it needs checking against your own numbers before you rely on it.
What to weigh up before you contribute
More room to contribute doesn’t automatically mean you should max it out. A few things shape the right call.
Cash flow comes first. Money you put into super is locked away until you meet a condition of release, usually retirement. If contributing leaves the business short, or leaves you reaching for a loan later, the tax saving isn’t worth it. Only commit money you genuinely won’t need.
Timing matters too. Contributions count in the financial year the fund receives them, not the day you hit send. If you’re planning a contribution to land before 30 June 2027, allow time for it to clear. Leaving it to the last week is how people accidentally push a contribution into the next year, or worse, tip over the cap.
Then there’s your own situation. Your age, how close you are to retirement, your total super balance, whether you run an SMSF, and how your business income sits across the year all change what makes sense. Going over a cap can trigger extra tax, so the aim is to use the room deliberately, not to fill it for the sake of it.
Where this fits with the rest of your plan
Super is one piece. How much to contribute, and when, sits alongside your tax planning for the year and your longer-term financial goals. For business owners with variable income, the smart move is usually to look at super, tax and cash flow together rather than treating any one in isolation.
That’s the kind of thing we work through with you. We handle the tax planning side, and for financial planning and retirement strategy we work with our partner Merchants of Wealth, so the super decision connects to a plan that actually fits your circumstances. If you run an SMSF, we can help you keep contributions inside the caps and the fund compliant.
The higher caps are a genuine opportunity. The right amount for you depends on your numbers, and that’s worth getting right before 30 June rolls around again.
Want to talk it through? Book a free first consultation or call us on 1300 226 722.
This is general information only and not personal financial or tax advice. Please speak with us about your own circumstances before acting.
This article is part of our complete 2026-27 guide to small business tax in Australia.
