Superannuation contribution caps are set to increase

An update worth noting for client conversations.

From 1 July 2026:

• The concessional contributions cap is expected to increase to $32,500
• The non-concessional contributions cap is therefore expected to rise to $130,000, calculated at four times the concessional cap

Why this matters:

Concessional contribution caps are indexed in line with Average Weekly Ordinary Time Earnings (AWOTE), which drives periodic increases.

What this could mean for your clients

• Eligible individuals may be able to claim up to $2,500 more in deductible concessional contributions
• This may also allow for up to $10,000 more per year in non-concessional contributions, depending on personal circumstances

While the ATO is yet to formally confirm the caps for the 2026–27 financial year, these changes are worth keeping in mind when reviewing client structures and borrowing needs. Clients should always seek advice from appropriately licensed professionals to ensure contributions align with their objectives.

A useful update for future SMSF conversations

If you are reviewing SMSF structures or future lending opportunities with clients, your Connective Lending Manager or Connective Elevate BDM can help you work through the scenario alongside these broader contribution changes.