In this guide
Key points about concessional contributions
- Current annual cap: $32,500 for 2026-27 (up from $30,000 in 2025-26).
- Tax treatment: Most concessional contributions are taxed at 15%. Higher-income earners may also pay Division 293 tax.
- Common types: Employer Superannuation Guarantee (SG) contributions, salary sacrifice contributions and personal contributions you claim as a tax deduction.
- Contributing more: Eligible people can carry forward any unused concessional contributions cap amounts from the previous five financial years.
- Exceeding the cap: Excess concessional contributions are included in your assessable income and taxed at your marginal tax rate, less a 15% tax offset to account for the contribution tax you already paid.
If you’re like most Australians, you’ll see frequent concessional contributions from your employer on your annual super statement.
Despite how common they are, many people don’t know what makes contributions concessional, the limit that applies, or how to add them to their super.
To help you learn more about these important super contributions, SuperGuide has put together this comprehensive guide.
What is a concessional super contribution?
Concessional contributions are any of the contributions paid into your super account that receive a concessional (or lower) tax rate. As they are made from money that has not yet been taxed, concessional contributions are sometimes referred to as being before-tax contributions.
Concessional super contributions are generally taxed at the special low rate of 15% (if your income plus concessional contributions is under $250,000) to help you save for your retirement. For many people, this tax rate is lower than the marginal or top tax rate they pay on their income.
If you make concessional contributions to an untaxed (constitutionally protected) super fund for government employees, no tax is deducted. You will instead pay tax when you withdraw your super after retirement. You may still be liable for Division 293 tax on your super contributions if you have high income.
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What types of contributions are concessional?
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