Non-Concessional Contributions: The Complete Australian Guide (2026-27)
Non-concessional (after-tax) super contributions in 2026-27: the $130,000 cap, the bring-forward rule, tax treatment, and what happens if you go over.
By Timothy Hirou GaschereauPublished 9 min read
Try it yourself
Non-concessional contributions are the after-tax money you put into your super fund yourself. No tax deduction on the way in, but a seriously attractive deal on the way out. If you've ever wondered how Australians park large lump sums inside the super tax shelter, this is the mechanism. Here's everything you need for 2026-27, as part of our retirement and super guide.
🎯 The essential: The 2026-27 non-concessional (after-tax) cap is $130,000 a year, and the bring-forward rule lets eligible under-75s put in up to $390,000 in one financial year. But if your total super balance is $2.1 million or more, your cap is $0.
What are non-concessional contributions?
Non-concessional contributions (NCCs) are personal super contributions made from money you've already paid income tax on: the “no deduction” contributions. They contrast with concessional contributions, the before-tax kind (employer super guarantee, salary sacrifice, and personal deductible contributions), which are taxed at 15% on the way in. NCCs aren't taxed on entry because you've already paid your marginal rate. Common examples: a personal bank transfer to your fund, spouse contributions, and proceeds from selling an asset contributed after tax.
The non-concessional contributions cap for 2026-27
From 1 July 2026, the annual non-concessional contributions cap is $130,000, up from $120,000 the year before, following indexation. A few things to keep in mind: the cap applies per person per year, it counts contributions across all your funds combined, and if your total super balance was $2.1 million or more on 30 June 2026, your NCC cap for 2026-27 is $0. The concessional cap for 2026-27 is $30,000, and maxing that out first is usually the priority because you get a tax deduction. Once that's done, NCCs are the next lever.
The bring-forward rule: up to 3 years at once
The bring-forward rule lets eligible people contribute up to three years' worth of non-concessional contributions in a single year. For 2026-27 that's up to $390,000 in one hit, genuinely useful if you've just sold a business, received an inheritance, or come into a large lump sum. You don't apply for anything: contributing more than the annual cap in one year automatically triggers it, as long as you're under 75 at some point during the year.
How much you can bring forward depends on your total super balance on 30 June 2026:
| Total super balance at 30 June 2026 | Bring-forward period | Maximum contribution |
|---|---|---|
| Less than $1.84 million | 3 years | $390,000 |
| $1.84m to less than $1.97m | 2 years | $260,000 |
| $1.97m to less than $2.1m | No bring-forward | $130,000 |
| $2.1 million or more | No cap available | $0 |
Worked example: Sarah is 58 with a total super balance of $400,000. She sells an investment property and, because her balance is under $1.84m, uses the full 3-year bring-forward to contribute $390,000 in 2026-27. Her bring-forward now covers 2026-27, 2027-28 and 2028-29, so she can't make further NCCs until 2029-30 (unless she has cap left over).
Total super balance thresholds and your cap
The general transfer balance cap (the ceiling on how much you can move into a tax-free retirement pension) is $2.1 million for 2026-27, and it's also the hard stop for non-concessional contributions. But the thresholds bite well before that:
| Total super balance at 30 June 2026 | Annual NCC cap | Bring-forward available? |
|---|---|---|
| Less than $1.84 million | $130,000 | Yes, up to $390,000 |
| $1.84m to less than $1.97m | $130,000 | Yes, up to $260,000 |
| $1.97m to less than $2.1m | $130,000 | No |
| $2.1 million or more | $0 | No |
The logic is simple: the government doesn't want people with very large balances continuing to pour money into a concessionally taxed environment. If you're at or above the transfer balance cap, the door is closed.
Why people use non-concessional contributions
NCCs aren't just for people who've maxed their concessional cap, though that's a common trigger. People also reach for them after selling a business or investment property (sheltering future earnings from tax), when they receive an inheritance or windfall (super earnings are taxed at a maximum of 15%, versus your marginal rate in a bank account), and to boost a low-balance spouse's super. The downsizer contribution (up to $300,000 per person from selling your home if you're 55 or older) sits outside the NCC cap but counts toward your total super balance.
Tax treatment: why after-tax contributions are so attractive
NCCs aren't taxed going into your fund, because you've already paid tax on the money. Inside the fund they sit in the tax-free component of your balance, separate from the taxable component where concessional contributions and their earnings live. The long game: pay tax now at your marginal rate, get the money into super, let it compound in a low-tax environment, and pull it out completely tax-free after 60. For someone in the 45% bracket there's no deduction going in, but tax-free compounding and tax-free withdrawals after 60 can still make NCCs very worthwhile, especially for large lump sums. (New to how super works? Start with what is superannuation.)
What happens if you exceed the cap
Going over is a mistake worth avoiding. The ATO issues an excess non-concessional contributions determination, and you choose between two options. Option 1: withdraw the excess plus 85% of its associated earnings; those earnings are added to your assessable income and taxed at your marginal rate, with a 15% offset. This is usually better. Option 2: leave the excess in super, where it's taxed at the top marginal rate plus Medicare levy (currently 47%), almost always the worse outcome. You get 60 days to respond to the determination; ignore it and the ATO applies the 47%. The lesson: track your contributions carefully across the year, especially with the bring-forward running over multiple years.
Government co-contribution and spouse contributions
Two related strategies are worth knowing. The government co-contribution tops up personal after-tax contributions for lower earners: if your total income is under $64,293 in 2026-27, contributing $1,000 can earn up to $500 from the government (full amount if you earn $49,293 or less, tapering above that). And spouse contributions can earn you a tax offset of up to $540 for contributing $3,000 to a spouse earning $37,000 or less. Both count toward the receiving person's NCC cap.
The bottom line: non-concessional contributions are one of the most powerful tools for building wealth inside super's tax-advantaged environment. The 2026-27 cap is $130,000, with the bring-forward allowing up to $390,000 in a single year if your total super balance is under $1.84 million. They won't suit everyone (if you're near $2.1 million the door is closed, and in a lower bracket the deductible concessional route usually wins), but for people with a lump sum to deploy, they're worth understanding properly. Get advice for your own numbers.
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❓ Frequently asked questions
Can I make non-concessional contributions if I'm retired?
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Yes, in most cases. If you're under 75 you can generally make non-concessional contributions without meeting a work test. The work test only applies to personal contributions you want to claim as a tax deduction, and only for people aged 67 to 74. Once you turn 75, you can no longer make personal non-concessional contributions.
Do non-concessional contributions affect the Age Pension?
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Potentially, yes. Your super balance is counted as an asset under the Age Pension assets test, and deemed income from super is assessed under the income test. Adding more to super increases your assessed assets and deemed income, which can reduce or eliminate your entitlement. It's worth getting specific advice if this applies to you.
What is the work test for people aged 67 and over?
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The work test requires you to be gainfully employed for at least 40 hours within a consecutive 30-day period during the financial year. Since 1 July 2022 it no longer applies to non-concessional or salary sacrifice contributions. It only applies if you're aged 67 to 74 and want to claim a personal contribution as a tax deduction.
Can I contribute to my spouse's super fund on their behalf?
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Yes. Spouse contributions are a type of non-concessional contribution made to your partner's fund, and they count toward your spouse's cap, not yours. If your spouse earns $37,000 or less, you may be eligible for a tax offset of up to $540 when you contribute $3,000. The offset tapers to zero once their income reaches $40,000.
What actually counts as a non-concessional contribution?
+
Any contribution to super that is not included in your assessable income: personal after-tax contributions where you don't claim a deduction, spouse contributions, and certain other amounts. Concessional contributions (employer SG, salary sacrifice, personal deductible contributions) do not count toward the NCC cap. Downsizer contributions are a separate category too.
What is the total super balance threshold for 2026-27?
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Based on your total super balance at 30 June 2026: under $1.84 million gives the full 3-year bring-forward ($390,000); $1.84m to $1.97m gives a 2-year bring-forward ($260,000); $1.97m to $2.1m allows only the annual $130,000 with no bring-forward; and $2.1 million or more means your cap is $0 for the year.
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Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial advice. Superannuation caps, thresholds and rules change over time and are indexed each year, so treat the 2026-27 figures here as a starting point and check the latest ATO figures. Super decisions are personal, so speak to a licensed financial adviser about your own situation.
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Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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