The concessional contribution (CC) cap is indexed in line with Average Weekly Ordinary Time Earnings (AWOTE), as published by the Australian Bureau of Statistics (ABS).

Based on the latest AWOTE figures released for the November 2025 reference period, and extrapolating from the May reference period data, there is a strong indication that the superannuation contribution caps will increase from 1 July 2026.

What Is Likely to Change?

If indexation proceeds as expected:

• Concessional Contribution (CC) Cap
  Expected to increase from $30,000 to $32,500
• Non-Concessional Contribution (NCC) Cap
  Expected to increase from $120,000 to $130,000
  (Calculated as four times the CC cap)

This would also increase the bring-forward amounts available under the non-concessional contribution rules.

Why This Matters

An increase in the contribution caps can create significant tax planning opportunities, particularly for:

• Individuals looking to maximise deductible super contributions
• Those using the carry-forward concessional contribution rules
• Clients planning to trigger the bring-forward NCC rules
• High-income earners managing Division 293 exposure
• SMSF members planning large contributions ahead of retirement

Even relatively small cap increases can materially change contribution strategies, especially where timing is critical around 30 June.

When Will It Be Confirmed?

We are awaiting formal confirmation of the updated superannuation caps. While the AWOTE figures strongly indicate indexation will occur, official confirmation is expected closer to 1 July 2026.

We will provide a further update as soon as the new caps are formally confirmed.

Watch This Space

These potential changes will affect a large number of superannuation and tax planning strategies heading into the 2026–27 financial year.

If you are considering making additional super contributions — or if you would like to review your existing strategy — now is a good time to start planning ahead.

Stay tuned for confirmation and planning guidance.