Superannuation, and the strict rules surrounding super contributions, can sometimes be quite confusing. So much so that this can often be off putting to those who are looking to build their wealth through superannuation for retirement.
In this piece, we break down the different ways you can contribute to super, and the strategies you could consider to help grow your superannuation for the long term.
Key takeaways
- There are two main ways to contribute to super: concessional contributions and non-concessional contributions.
- Concessional contributions are tax deductible and can be made through salary sacrifice or personal contributions. The cap is $32,500 per year from 1 July 2026.
- Non-concessional contributions are made from after-tax money and do not attract a tax deduction. The cap is $130,000 per year from 1 July 2026.
- Contributing early, through either type, can make a significant difference to your final retirement benefits.
- Contribution caps change over time, so always check current figures before contributing, and seek advice where needed.
How can I grow my super through contributions?
There are two main ways to contribute to superannuation: concessional contributions and non-concessional contributions.
Adding funds to your super at an early age, through either type of contribution, can make a significant difference to your final retirement benefits over the long term.
Superannuation rules and restrictions are quite complicated, and you should always consider seeking advice prior to making any additional contributions to your superannuation fund.
Concessional contributions
Concessional contributions are the most tax effective way of contributing money into super, as you are eligible for a tax deduction for the contributions made.
There are two ways you can make a concessional contribution.
Firstly, through salary sacrifice via your employer, where additional funds are taken out of your regular wage or salary and contributed to super on your behalf.
Alternatively, you can make a personal concessional contribution using money you have already been paid, and claim a tax deduction at the end of the year.
Many Australians look to boost their concessional super contributions through salary sacrifice, as it is a simple way to contribute to superannuation before tax is taken out.
What is the current concessional contributions cap?
From 1 July 2026, the concessional contributions cap is $32,500 per year, up from $30,000 in the 2025-26 financial year.
You can find the most current figures on the ATO's concessional contributions cap page.
Non-concessional contributions
Non-concessional contributions do not attract a tax benefit. They are made from money that has already had tax paid on it, and simply allow you to add more funds to superannuation to boost the value of your funds.
Contributing to super this way may be done to take advantage of the lower tax rate within the superannuation environment. However, like all superannuation monies, non-concessional contributions are restricted in the way of accessing the funds before retirement.
What is the current non-concessional contributions cap?
From 1 July 2026, the non-concessional contributions cap is $130,000 per year, up from $120,000 in the 2025-26 financial year.
You can find the most current figures on the ATO's non-concessional contributions cap page.
What to do next
Super contributions, and the caps that apply to them, can make a real difference to your retirement outcome, and they are not always straightforward.
If you're weighing up your options, it's worth exploring superannuation advice, and you can read more on how much super is enough,
Speak with a Morgans financial adviser to learn more.
Frequently asked questions
What is the difference between concessional and non-concessional super contributions?
Concessional contributions are made before tax, or claimed as a tax deduction, and are taxed within your super fund. Non-concessional contributions are made from money that has already been taxed, and do not attract a further tax deduction.
How much can I contribute to super each year?
From 1 July 2026, you can contribute up to $32,500 per year in concessional contributions and up to $130,000 per year in non-concessional contributions, subject to eligibility.
What happens if I exceed my concessional contributions cap?
The excess amount is generally included in your assessable income and taxed at your marginal tax rate, with a tax offset available to account for the contributions tax already paid within your fund.
What happens if I exceed my non-concessional contributions cap?
Excess non-concessional contributions can attract additional tax, unless you elect to withdraw the excess amount and any associated earnings from your fund. It is worth seeking advice if you think you may have exceeded your cap.
How can I grow my super in Australia?
The two main ways to grow your super are through concessional contributions, such as salary sacrifice, and non-concessional contributions from your after-tax savings. Contributing early and consistently, within the relevant caps, can make a meaningful difference over the long term.
