Concessional contributions include employer super guarantee payments, salary sacrifice contributions, and personal deductible contributions.<\/p>\n
All three count toward the cap.<\/p>\n
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Image source: Getty Images<\/p>\n
An extra $2,500 in concessional contributions per year might not sound significant.<\/p>\n
However, over a long investment horizon, the maths adds up.<\/p>\n
According to<\/a> Pitcher Partners, an additional $2,500 per year contributed to super on a concessional basis, invested at a long-term return of around 7% per annum, could grow to approximately $37,000 over 10 years.<\/p>\n The tax benefit compounds that further: every dollar of salary sacrificed into super at 15% rather than at a marginal tax rate of 32.5% or higher is a permanent tax saving.<\/p>\n For a worker on a salary of $90,000 contributing the full extra $2,500 via salary sacrifice, the income tax saving is approximately $437 per year.<\/p>\n The non-concessional cap and bring-forward rule also increased <\/p>\n The cap increase does not stop at concessional contributions.<\/p>\n The non-concessional contributions cap also rose<\/a> to $130,000 from 1 July 2026, up from $120,000.<\/p>\n For investors under 75 with a total super balance below $2.1 million, the three-year bring-forward rule now allows up to $390,000 in non-concessional contributions in a single financial year.<\/p>\n The transfer balance cap also rose<\/a> to $2.1 million. This lifts the maximum amount that can be moved into a tax-free retirement income stream and gives retirees more room to shelter earnings from tax.<\/p>\n An important catch-up deadline that just passed <\/p>\n One critical change that came into effect this month deserves separate attention.<\/p>\n From 1 July 2026, any unused concessional contribution cap amounts from FY21 and earlier are permanently forfeited.<\/p>\n Investors who were eligible to carry forward unused amounts from 2020-21 and chose not to use them by 30 June 2026 have now lost that opportunity permanently.<\/p>\n Looking ahead, the five-year carry-forward window now runs from FY22 to FY27, giving investors with super balances below $500,000 the ability to catch up on contributions they missed in those years.<\/p>\n Two ASX shares that benefit from a growing superannuation pool <\/p>\n More money flowing into superannuation benefits the wealth management platforms that administer and invest those assets.<\/p>\n Hub24 Ltd (ASX: HUB<\/a>) and Netwealth Group Ltd (ASX: NWL<\/a>) are the two most direct ASX beneficiaries of this dynamic.<\/p>\n