Concessional Contributions
Before-tax super contributions taxed at 15% inside the fund, including employer SG, salary sacrifice, and personal deductible contributions.
Concessional contributions (CCs) are super contributions made from pre-tax income. They include employer Superannuation Guarantee (SG) contributions, salary sacrifice contributions, and personal contributions for which you claim a tax deduction. These contributions are taxed at 15% inside the super fund (or 30% for individuals with income above $250,000 under Division 293), which is typically lower than the individual's marginal tax rate.
For 2026-27, the concessional contributions cap is $32,500 per year (up from $30,000 in 2025-26). Contributions exceeding this cap are included in your assessable income and taxed at your marginal rate (minus a 15% offset for the tax already paid in the fund). The cap has risen in steps: $27,500 (2021-22 to 2023-24), $30,000 (2024-25 to 2025-26), and $32,500 from 2026-27.
Since 1 July 2018, you can carry forward unused concessional cap amounts from the previous 5 years, provided your total super balance was below $500,000 at the end of 30 June of the previous year. This is particularly useful for people with fluctuating incomes or those who want to make a large one-off contribution. For example, if you only contributed $20,000 in each of the last 3 years (a total of $30,000 unused cap), you could contribute up to $60,000 in the current year without exceeding your available cap.
How it works
Concessional contributions are pre-tax money going into super — employer SG, salary sacrifice, and personal contributions you claim a tax deduction for all fall into this bucket. Rather than being taxed at your marginal rate, they're taxed at 15% inside the fund (30% for the portion caught by Division 293 if your income plus contributions exceeds $250,000). The annual cap for 2026-27 is $32,500, and it's a combined cap across all three sources, not a separate limit for each.
In practice, your super fund's annual statement lists your concessional contributions for the year, and if you're making a personal deductible contribution you need to lodge a formal notice of intent to claim with your fund before you lodge your tax return, or before the fund pays out a benefit, whichever comes first — miss that step and the ATO won't treat the contribution as concessional.
Go over the cap and the excess is added to your assessable income and taxed at your marginal rate, minus a 15% offset for the tax already paid inside the fund, plus an excess concessional contributions charge. If your total super balance was under $500,000 at the end of the previous 30 June, you can carry forward unused cap from up to five previous years, which is particularly useful if your income is irregular or you want to make one large catch-up contribution.
Example: employer SG and salary sacrifice against the cap
Over the year, your employer contributes $14,000 in SG, you salary sacrifice an extra $15,000, and you make a $2,000 personal contribution you plan to claim as a deduction. Total concessional contributions for the year come to $31,000 — under the $32,500 cap for 2026-27, with $1,500 of headroom left.
If instead you'd salary sacrificed $20,000 rather than $15,000, your total would be $36,000, exceeding the cap by $3,500. That $3,500 excess gets added to your assessable income and taxed at your marginal rate, less a 15% offset for the contributions tax already paid inside the fund.
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Salary Sacrifice
An arrangement where you direct part of your pre-tax salary into super (or other benefits), reducing your taxable income.
Superannuation Guarantee (SG)
The compulsory minimum percentage of an employee's qualifying earnings (formerly ordinary time earnings) employers must contribute to their super fund.
Non-Concessional Contributions
After-tax super contributions that are not taxed inside the fund, with an annual cap of $130,000 (2026-27).
Carry-Forward Unused Cap
The ability to use unused concessional contribution cap amounts from the previous 5 years, if your total super balance is under $500,000.
Division 293 Tax
An additional 15% tax on concessional super contributions for individuals with income and super contributions above $250,000.