The contribution rules inside super are among the most precise in Australian tax law. Get them right and you can build significant wealth inside a concessionally taxed environment. Miss a deadline, exceed a cap, or misfile a notice and you face excess contributions tax, penalties, or opportunities you cannot recover.
This guide covers every contribution type available to SMSF trustees in 2025-26, the strategies worth considering before 30 June 2026, and the decisions that matter now that contribution caps are increasing on 1 July 2026.
Key Takeaways
- The concessional contributions cap is $30,000 for 2025-26, rising to $32,500 from 1 July 2026.
- The non-concessional contributions cap is $120,000 for 2025-26, rising to $130,000 from 1 July 2026.
- The carry-forward rule lets you use unused concessional cap amounts from prior years if your Total Super Balance was below $500,000 at 30 June 2025. The oldest available year is now 2020-21.
- The bring-forward rule allows up to $360,000 in non-concessional contributions in a single year. Starting a bring-forward period before or after 30 June 2026 produces different outcomes.
- Bring-forward NCC thresholds for 2025-26 are based on your TSB at 30 June 2025 (see table in the bring-forward section below).
- Downsizer contributions allow up to $300,000 per person from eligible property proceeds, with no Total Super Balance limit.
- Contributions must be received in your fund’s bank account by 30 June - not just initiated.
- Division 296 tax changes the contribution strategy for members with balances at or approaching $3 million from 1 July 2026.
Contents
- Types of Contributions
- Concessional Contributions
- Non-Concessional Contributions
- Carry-Forward Concessional Contributions
- The Bring-Forward Rule
- Downsizer Contributions
- Government Co-Contribution
- Spouse Contributions
- Contribution Splitting
- Claiming a Tax Deduction on Personal Contributions
- The 30 June Deadline
- Contribution Strategies and Division 296
- What to Raise with Your Adviser Before EOFY
- Frequently Asked Questions
Types of Contributions
Contributions to an SMSF fall into two main categories: concessional and non-concessional. Each has its own cap, tax treatment, and eligibility rules.
Concessional contributions are made from pre-tax income. They include employer Super Guarantee (SG) payments, salary sacrifice arrangements, and personal contributions for which you lodge a Notice of Intent to claim a tax deduction. The fund pays 15% tax on concessional contributions when received.
Non-concessional contributions are made from after-tax income. No deduction is claimed on these amounts, so the fund does not pay contributions tax when it receives them.
Beyond these two categories, several other contribution types have specific eligibility conditions: downsizer contributions, government co-contributions, and spouse contributions. Each is covered separately below.
For a consolidated reference on current caps, thresholds, and balance limits across all contribution types, see the SMSF Contribution Caps page. To model how different contribution strategies affect your fund’s balance, use the SMSF Contribution Planner.
Concessional Contributions
The concessional contributions cap for 2025-26 is $30,000 per member.
This cap applies to all concessional contributions across all funds in which you hold an interest - not just your SMSF. Employer Super Guarantee payments (currently 11.5% of ordinary time earnings), salary sacrifice amounts, and personal contributions you intend to claim as a deduction all count toward this single cap.
From 1 July 2026, the concessional cap increases to $32,500.
Who can make concessional contributions
For 2025-26, there is no upper age limit for concessional contributions provided you are below age 75. Members aged 67-74 must satisfy the work test or the work test exemption to make personal concessional contributions. Members aged 75 and over cannot make personal contributions, but mandated employer contributions (Super Guarantee) are still accepted.
What happens if you exceed the cap
If you exceed the concessional cap, the excess is included in your assessable income and taxed at your marginal rate, with a 15% offset applied to account for the contributions tax already paid by the fund. You also pay an excess concessional contributions charge. The ATO will notify you and give you the option to release the excess from super to help meet the tax liability.
Track concessional contributions before year-end. Employer SG contributions are not always visible in real time, particularly for SMSF trustees who are also business owners or salary sacrifice participants.
Non-Concessional Contributions
The non-concessional contributions (NCC) cap for 2025-26 is $120,000 per member.
To make non-concessional contributions in 2025-26, your Total Super Balance (TSB) at 30 June 2025 must have been below $2 million. Members with a TSB at or above $2 million at 30 June 2025 cannot make non-concessional contributions for the 2025-26 year.
From 1 July 2026, the NCC cap increases to $130,000.
Non-concessional contributions are made from after-tax money and are not included in your assessable income when made. The benefit is long-term: earnings on those funds accumulate and compound inside a concessionally taxed environment.
Carry-Forward Concessional Contributions
If you have not used your full concessional cap in recent years, you may be able to carry forward unused amounts and contribute more than $30,000 in 2025-26.
Two conditions apply:
- Your TSB at 30 June 2025 must have been below $500,000.
- Unused cap amounts are available for up to 5 years from the year they arose.
The 2019-20 unused amount expired permanently on 30 June 2025. The oldest year now available to carry forward is 2020-21. If you have not made full concessional contributions in any year from 2020-21 onward, those unused amounts can be added to your 2025-26 cap.
For someone who was self-employed, part-time, or not salary sacrificing, carry-forward balances can be substantial. This remains one of the most underused strategies available to members who meet the TSB condition.
To check your available carry-forward balance, log into myGov, select ATO, then Super. Your unused cap history will be listed there, or ask your accountant to confirm it from their ATO portal access.
The Bring-Forward Rule
The bring-forward rule allows eligible members to contribute up to three years’ worth of non-concessional contributions in a single financial year. For 2025-26, the maximum is $360,000.
The rule triggers automatically the moment you contribute more than the annual NCC cap of $120,000 in a single year. Once triggered, you are locked into a 3-year bring-forward period whether you intended to use it or not.
Eligibility in 2025-26
Your access to the bring-forward rule depends on your TSB at 30 June 2025:
| TSB at 30 June 2025 | Bring-forward access | Maximum NCC |
|---|---|---|
| Below $1.76M | 3-year | $360,000 |
| $1.76M to below $1.88M | 2-year | $240,000 |
| $1.88M to below $2M | 1-year only | $120,000 |
| $2M and above | Nil | $0 |
The exact thresholds are updated each year. Always confirm current figures at the SMSF Contribution Caps page before making a large contribution.
The timing decision: before or after 1 July 2026?
A genuine timing decision applies this financial year.
If you start a bring-forward period before 30 June 2026, you lock in the current $360,000 limit for your 3-year period. If you wait until after 1 July 2026, the bring-forward maximum rises to $390,000 (three years at the new $130,000 NCC cap). On face value, waiting saves you from locking in a lower limit.
But the right answer depends on your circumstances. Members whose TSB is approaching the $2 million NCC eligibility threshold may be better off acting now, before a further increase in their balance shuts the window. Members in pension phase drawing down their balance may find their TSB falls below a higher bring-forward band by 1 July 2026.
There is no universal answer. Model it against member balances and projected movements before the end of May.
Downsizer Contributions
If you are aged 55 or older and sell an eligible Australian residential property, you can contribute up to $300,000 per person ($600,000 for a couple) from the proceeds directly into super.
Key conditions:
- The property must have been owned for 10 or more years.
- It must have qualified for the main residence CGT exemption at some point during your ownership (not necessarily at the time of sale).
- The contribution must be made within 90 days after the property settlement date.
- It counts toward your transfer balance cap once you move those funds into pension phase, but does not count toward the standard NCC cap.
- There is no Total Super Balance limit for downsizer contributions. Members with a TSB above $3 million can still use this strategy.
The absence of a TSB limit makes this one of the few remaining pathways for high-balance members to add funds to super. For members approaching the NCC eligibility cut-off of $2 million, a property sale can allow a contribution that the standard NCC rules would otherwise prevent.
If a property settlement is upcoming in 2025-26, the 90-day window is strict. The clock starts from settlement, not from when you receive the funds. Raising this with your accountant before settlement - not after - gives you time to structure the contribution correctly.
For how downsizer contributions interact with pension phase and the transfer balance cap, see the SMSF Pension Guide.
Government Co-Contribution
The government co-contribution is available to lower-to-middle income earners who make personal after-tax contributions to their super.
For 2025-26, if your total income is below $47,488, the government will match 50 cents for every dollar of eligible personal after-tax contributions, up to a maximum co-contribution of $500. The benefit phases out and is nil at $62,488. These thresholds are indexed annually and the figures for future years should be confirmed with the ATO or your accountant.
To be eligible, you must:
- Earn at least 10% of your total income from employment or business activity.
- Lodge your tax return for the relevant year.
- Be below the TSB threshold for making non-concessional contributions.
The government calculates and deposits the co-contribution automatically after your tax return is lodged. No separate application is required.
This is smaller in dollar terms, but for eligible members - particularly a spouse with low employment income - it is simple and valuable.
Spouse Contributions
If your spouse (including a de facto spouse) has a low income or is not working, you can contribute to their super account and potentially access a tax offset.
For 2025-26, you can claim an 18% tax offset on contributions of up to $3,000 made to your spouse’s super, provided their income is below $37,000. The maximum offset is $540. It phases out completely once your spouse’s income reaches $40,000.
Spouse contributions are treated as non-concessional contributions for the receiving spouse and count toward their NCC cap and TSB eligibility.
This strategy is worth considering where one fund member has a low income and the couple is looking to grow both members’ balances. It is also a simple way to build the lower-balance member’s position without requiring separate carry-forward or bring-forward analysis.
Contribution Splitting
Contribution splitting allows SMSF members to redirect up to 85% of their concessional contributions from the previous financial year into their spouse’s account within the same fund. It is a reallocation of contributions already made, not a new contribution.
The primary use case is equalising balances between two fund members. This matters in several situations:
- One member’s balance is approaching the $3 million Division 296 threshold.
- One member has significantly more transfer balance cap headroom than the other.
- One member is older or closer to retirement, and the couple wants to grow the younger member’s balance.
The request must be made before 30 June of the financial year after the contributions were made. For contributions made in 2024-25, the deadline to split is 30 June 2026.
For funds with a material balance imbalance, discuss contribution splitting with your accountant before the end of May.
For how balance levels between members interact with estate planning and binding death benefit nominations, see the SMSF Death Benefits and Estate Planning Guide.
Claiming a Tax Deduction on Personal Contributions
If you make personal (non-employer) concessional contributions to your SMSF and intend to claim them as a tax deduction, you must lodge a Notice of Intent to Claim a Deduction with your fund.
This notice must be lodged before the earlier of:
- Lodging your personal income tax return for the year the contribution was made.
- 30 June of the financial year following the contribution.
- Starting to draw a pension from the fund on the account those contributions went into.
If you miss this deadline, you cannot claim the deduction. The contribution will be treated as a non-concessional contribution instead - which may push you over your NCC cap and trigger a penalty.
Failure to lodge the Notice of Intent on time is the most common contribution-related mistake made by SMSF trustees. The deadline is firm and the ATO does not grant retrospective relief.
Your fund trustee (which in an SMSF is you) must acknowledge receipt of the notice in writing before the deduction is valid. This acknowledgement should be documented in your fund records.
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The 30 June Deadline
Contributions must be received in your SMSF’s bank account by 30 June 2026. The date of payment initiation is irrelevant. Only the date of receipt counts.
Bank transfers - particularly between accounts at different financial institutions - can take 1 to 3 business days. In the final days of June, processing delays are common. The last business day before 30 June is one of the highest-volume transfer days of the financial year for Australian banking systems.
Allow at least 5 business days before 30 June when making any contribution you intend to count for 2025-26. A transfer initiated on 27 June may not settle until 1 July 2026, permanently costing you the contribution for that year.
The same receipt rule applies to employer SG and salary sacrifice contributions. Check settlement dates, not just payment initiation dates.
For a full list of contribution-related deadlines and other SMSF compliance dates for 2025-26, see the SMSF Compliance Calendar.
Contribution Strategies and Division 296
If your TSB is approaching or above $3 million, the standard contribution strategy analysis changes materially from 1 July 2026.
Division 296 tax applies an additional 15% tax on super earnings attributed to the portion of your balance above $3 million, bringing the effective tax rate on those earnings from 15% to 30%. It is a personal tax assessed to the individual - not the fund.
Concessional contributions above $3 million
Concessional contributions may still make sense for members above $3 million because the upfront tax benefit remains intact. The question is whether the ongoing 30% effective earnings tax on the portion above $3 million changes the long-term comparison with investing outside super. For many members on top marginal rates, super may remain tax-effective, but the comparison should be modelled.
That inside-super versus outside-super comparison may also shift under the 2026 budget CGT proposals. See our worked examples in the SMSF budget 2026 CGT, negative gearing and trust changes explainer before committing new money to growth assets.
Non-concessional contributions above $3 million
The case for non-concessional contributions is weaker for members already well above the $3 million threshold. Adding after-tax money increases the asset base subject to the higher effective earnings tax rate, without any upfront tax benefit. Review carefully unless there are specific structural reasons such as estate planning, asset protection, or investment access.
Contribution splitting becomes more strategic
For members with two fund members where one balance is significantly higher than the other, contribution splitting from concessional contributions becomes a direct lever to manage the higher-balance member’s TSB trajectory. Shifting 85% of concessional contributions annually across to the lower-balance member slows the growth of the higher balance while keeping the total pool of assets inside the same SMSF.
For a full explanation of the CGT cost base election available to SMSF trustees before 30 June 2026, see the Division 296 CGT cost base reset guide.
What to Raise with Your Adviser Before EOFY
Five questions worth putting to your accountant or SMSF adviser before the end of May:
1. What is my total concessional contribution figure for 2025-26 to date?
Include employer SG, salary sacrifice, and any personal contributions. Many trustees do not have a clear figure until their accountant pulls it from the ATO portal.
2. Do I have carry-forward concessional amounts available from 2020-21 onward?
Only relevant if your TSB was below $500,000 at 30 June 2025, but can significantly increase your effective cap.
3. Does the bring-forward rule make sense this year - and is it better to act before or after 1 July 2026?
The $30,000 difference in maximum bring-forward ($360,000 vs $390,000) needs to be weighed against TSB trajectory and eligibility.
4. Are there any upcoming property settlements that would open a downsizer contribution window?
The 90-day clock from settlement is strict. This needs planning before settlement, not after.
5. Has contribution splitting from 2024-25 been actioned?
The deadline is 30 June 2026. If you have not yet split the 2024-25 concessional contributions and your fund has a material balance imbalance between members, this is time-sensitive.
These questions require current numbers. Early May is the right time for the conversation; late June removes options.
For a broader view of your fund’s governance and documentation obligations alongside contributions, see the SMSF Trustee Obligations Guide.
Frequently Asked Questions
Can I make contributions to my SMSF if I am retired?
It depends on your age and work status. Members under 67 can make personal contributions without any work test. Members aged 67-74 must satisfy the work test (at least 40 hours of gainful employment in a consecutive 30-day period during the financial year) or the work test exemption to make personal contributions. Members aged 75 and over cannot make personal contributions, but employer mandated Super Guarantee contributions can still be received by the fund. Downsizer contributions have no upper age limit.
What happens if I accidentally exceed the contribution caps?
For concessional contributions, the excess is included in your assessable income and taxed at your marginal rate, with a 15% offset for contributions tax already paid. You can elect to release the excess from super. For non-concessional contributions, you can release the excess, but 85% of associated earnings are included in your assessable income. Leaving excess NCC inside the fund attracts penalty tax. The ATO will notify you after your fund lodges its annual return.
Does the bring-forward rule apply to members over 75?
No. Members aged 75 and over cannot make non-concessional contributions and cannot access the bring-forward rule. Members aged 67-74 can access it provided they satisfy the work test or work test exemption and their TSB is below the relevant threshold.
Can I make contributions when my SMSF is in pension phase?
Yes, if your fund operates both accumulation and pension accounts. New contributions go into accumulation. If all member interests are in pension phase, you may need to open a new accumulation interest before contributing. Your accountant can advise. For more, see the SMSF Pension Guide.
How does the downsizer contribution interact with the transfer balance cap?
Downsizer contributions are received into accumulation phase and do not count against your transfer balance cap at contribution. If you later start an account-based pension with those funds, the amount transferred counts against your $2 million transfer balance cap. If your cap is fully used, the funds remain in accumulation phase unless withdrawn.
Is contribution splitting the same as a spouse contribution?
No. Spouse contributions are new after-tax contributions made directly to your spouse’s super account. Contribution splitting redirects up to 85% of concessional contributions already made to your account into your spouse’s account after the event. Both can help equalise balances, but the rules and timing are different.
Do I need to update my investment strategy after making a large contribution?
Yes, if the contribution materially changes the fund’s asset allocation or a member’s financial position. A large cash contribution awaiting investment can be enough to prompt a review. For the ATO’s requirements, see the SMSF Investment Strategy guide.
What is the work test and who needs to satisfy it?
The work test requires you to have been gainfully employed for at least 40 hours within a single consecutive 30-day period during the financial year in which you want to contribute. Members aged 67-74 must satisfy this to make personal contributions (both concessional and non-concessional). The work test exemption applies in the first financial year after you last met the work test, provided your TSB was below $300,000 at the start of that year. Employer SG contributions are not affected by the work test - those must still be accepted by the fund regardless of the member’s work status.
What counts as a contribution for cap purposes?
Most transfers of value into your SMSF count as contributions, including cash and in-specie transfers valued at market value. Rollovers from other super funds are not contributions. Loan repayments under an LRBA are not contributions. If you are unsure whether a transfer counts, check with your accountant before it occurs.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consult a licensed financial adviser or SMSF specialist before making decisions about your fund.