SMSF advisers and trustees will have a new set of caps and balances to contend with from 1 July with confirmation the concessional contributions (CC) cap will increase alongside the general transfer balance cap (TBC) on that date.
The change in the CC cap follows the release last week of average weekly ordinary time earnings data for the December quarter 2025, which moved upwards sufficiently to trigger an increase in the cap from $30,000 to $32,500 from the start of the next financial year.
As such, the non-concessional contributions (NCC) cap, which is four times the CC cap, will climb from $120,000 to $130,000, and the three-year NCC bring-forward cap will move up to $390,000.
These shifts follow the release earlier this year of inflation figures for the December quarter 2025, which spiked at the end of last year, resulting in the general TBC being indexed from $2 million to $2.1 million on 1 July 2026, its third increase in four years.
Taken together, these concurrent changes mean the total super balance (TSB) at which point the maximum bring-forward NCC of $390,000 can be applied will increase from $1.76 million to $1.84 million.
Those with a TSB of $1.84 million to under $1.97 million will be able to make a maximum bring-forward NCC of $260,000, while those with a TSB of $1.97 million to under $2.1 million can make a maximum bring-forward NCC of $130,000. Those over $2.1 million will have no ability to make any further NCCs.
Heffron managing director Meg Heffron noted the movements between the general TBC and contribution caps had created more opportunities for practitioners to act.
“As recently as 2021/22, for example, someone with $1.8 million in super couldn’t make NCCs at all without creating an excess – as the threshold was $1.7 million. In 2026/27, they could use the three-year bring-forward rules,” Heffron stated in a post on her firm’s website.
“Back in 2021/22, bring forwards were only possible up until age 67 – whereas now this is something that’s possible up until age 75.
“The transfer balance cap has increased rapidly in recent years – in 2022/23 it was only $1.7 million and in a few months it will be $2.1 million.
“Many clients who have been locked out of making non-concessional contributions for several years will find themselves ‘back in the game’ next year.
“Even those who have fully utilised their personal transfer balance cap might be able to do so. Remember that non-concessional contributions and bring-forward thresholds depend entirely on the general transfer balance cap, not the cap for an individual.”
