Non-Concessional Contributions: A Complete Guide
By Kaleem UllahLast Updated: Sept 10, 2026|8 min read
Non-concessional contributions are the after-tax money you put into super, and they are one of the most effective ways to build your retirement savings, if you stay within the caps. Because you have already paid tax on this money, it is not taxed again when going into your fund, and it grows in the low-tax super environment. But the caps are strict, they change most years, and going over them triggers extra tax. This guide explains what non-concessional contributions are, the current caps, how the bring-forward rule works, and the traps to avoid.
QUICK ANSWER: WHAT ARE NON-CONCESSIONAL CONTRIBUTIONS?
Non-concessional contributions are personal contributions you make to super from your after-tax income, for which you do not claim a tax deduction. They are not taxed on the way into your fund because tax has already been paid. There is an annual cap on how much you can contribute, and, if you are under 75 and your total super balance is under the threshold, the bring-forward rule lets you use up to three years of the cap at once. Contributions above the cap attract extra tax, so knowing your limit matters.
Current Contribution Caps at a Glance
The figures below apply from 1 July 2026 (the 2026-27 financial year), with the previous year shown for comparison. Caps are indexed and change most years, so always confirm the current figures with the ATO before you contribute.
| Cap or threshold | 2025-26 | 2026-27 (current) |
|---|---|---|
| Non-concessional (after-tax) cap | $120,000 | $130,000 |
| Concessional (before-tax) cap | $30,000 | $32,500 |
| Bring-forward maximum (3 years) | $360,000 | $390,000 |
| Total super balance eligibility threshold | $2.0 million | $2.1 million |
| Full bring-forward available if TSB under | $1.66 million | $1.84 million |
Your non-concessional cap is nil for a year if your total super balance was at or above the eligibility threshold on 30 June of the previous year. In other words, once your super reaches the threshold, you cannot make further non-concessional contributions without triggering excess contributions tax.
What Counts as a Non-Concessional Contribution?
A non-concessional contribution is any contribution made from money that has already been taxed, where no one claims a tax deduction for it. The common types are:
- Personal after-tax contributions you make from your take-home pay or savings and do not claim as a deduction.
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- Spouse contributions made into your account by your partner.
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- Excess concessional contributions that you leave in the fund, which are then counted against your non-concessional cap.
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- Contributions above your concessional cap where a personal deduction is not claimed.
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Concessional vs Non-Concessional Contributions
The difference comes down to tax. It is the single most important distinction in super contributions.
| Feature | Concessional (before-tax) | Non-concessional (after-tax) |
|---|---|---|
| Source | Money before income tax | Money already taxed |
| Examples | Employer SG, salary sacrifice, deductible personal | Personal after-tax, spouse contributions |
| Taxed in the fund | Yes, generally 15% on the way in | No, tax already paid |
| Annual cap (2026-27) | $32,500 | $130,000 |
| Deduction claimed | Yes | No |
The Bring-Forward Rule (the Three-Year Rule)
The bring-forward rule lets eligible people contribute up to three years of the non-concessional cap in a single year, by bringing forward the next two years' caps. It is how someone with a lump sum, such as an inheritance or the proceeds of a sale, can move a large amount into super at once.
To use it, you must be under 75 at some point in the year the bring-forward is triggered, and your total super balance on 30 June of the previous year must be under the relevant threshold. How much you can bring forward is tiered by your total super balance:
| Total super balance on 30 June 2026 | Bring-forward available (2026-27) |
|---|---|
| Under $1.84 million | Up to $390,000 (full 3 years) |
| $1.84 million to under $1.97 million | Up to $260,000 (2 years) |
| $1.97 million to under $2.1 million | $130,000 (1 year only, no bring-forward) |
| $2.1 million or more | Nil |
IF YOU ALREADY TRIGGERED THE BRING-FORWARD
The cap increase does not lift a bring-forward you have already started. If you triggered the bring-forward rule in 2024-25 or 2025-26 and are still inside that three-year period, your total is locked to the caps that applied when you triggered it. You do not get the benefit of the higher 2026-27 cap mid-period. This is a common and costly misunderstanding, so check which year your bring-forward period began before contributing more.
A Worked Example
Sarah, aged 58, receives a $250,000 inheritance and wants to move it into super. Her total super balance on 30 June 2026 was $600,000, well under the $1.84 million threshold, so she is eligible for the full bring-forward.
By triggering the bring-forward rule in 2026-27, Sarah can contribute up to $390,000 in non-concessional contributions over the three-year period, so her $250,000 fits comfortably within a single contribution. If she instead made only the standard annual contribution of $130,000, she would need to spread the rest across the following years. The bring-forward lets her get the full amount into the low-tax super environment now, where it can grow for her retirement.
The Disadvantages and Risks to Weigh
Non-concessional contributions are powerful, but they are not right for everyone or every situation. Consider the trade-offs:
What Happens If You Exceed the Cap?
If you contribute more than your non-concessional cap, the ATO issues a determination. You can generally elect to release the excess contributions plus 85% of the associated earnings from your fund, with those earnings then taxed at your marginal rate (with a 15% offset). If you choose not to release the excess, it is taxed at the top marginal rate of 47%. Because the penalty is steep, tracking your contributions across all your funds during the year is essential, and your total is visible through ATO online services.
A Change on the Horizon
From 30 June 2027, Division 296 introduces an additional 15% tax on a portion of the earnings for individuals with a total super balance above $3 million, with a further step above $10 million. It does not change the contribution caps, but for people with large balances it changes the calculus of adding more to super, and is worth factoring into a long-term plan. If your balance is approaching these levels, our financial planning service in Adelaide can help you model the impact.
How The Kalculators Can Help
We help you use non-concessional contributions effectively: checking your total super balance and remaining cap, timing a bring-forward correctly, and making sure a lump sum goes in without triggering excess contributions tax. If you run a self-managed fund, our guide on whether an SMSF is right for you explains how contributions work inside an SMSF, and our SMSF administration service in Adelaide handles the compliance.
Frequently Asked Questions
Kaleem Ullah
Kaleem is CEO & Author at "The Kalculators". With more than 10 years of experience in financial services, he built Kalculators to transform your financial challenges into strategic triumphs!
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