Super contribution caps, Division 293 tax and minimum drawdown rules in Australia.
How much you can add to super each year, what it’s taxed at, and the minimum you must draw down once a pension starts — kept current as government rules change.
Concessional (before-tax) contributions cap.
Concessional contributions are the before-tax amounts that go into your super — employer Superannuation Guarantee (SG), salary sacrifice, and personal contributions you claim as a tax deduction. They are taxed at 15% inside your fund (subject to Division 293 above $250,000, see below).
| Financial year | Concessional cap |
|---|---|
| 2026–27 | $32,500 |
| 2025–26 | $30,000 |
| 2024–25 | $30,000 |
| 2023–24 | $27,500 |
Carry-forward (catch-up) concessional contributions.
If your Total Super Balance (TSB) was below $500,000 on 30 June of the previous financial year, you can carry forward unused concessional cap amounts from up to five previous financial years (available from 2019–20 onward) and contribute more than the standard annual cap in a single year. Unused amounts expire after five years.
Non-concessional (after-tax) contributions cap.
Non-concessional contributions are made from money you’ve already paid tax on — they don’t attract the 15% contributions tax. The cap is generally four times the concessional cap.
| Financial year | Non-concessional cap |
|---|---|
| 2026–27 | $130,000 |
| 2025–26 | $120,000 |
| 2024–25 | $120,000 |
Under-75s who meet eligibility rules may be able to bring forward up to three years of non-concessional cap (up to $390,000 at the 2026–27 rate) and contribute it in a single year. The cap is nil once your Total Super Balance reaches the general transfer balance cap ($2,000,000 from 1 July 2025).
Division 293 tax — the extra 15% for higher incomes.
If your combined income and low-tax contributions are above $250,000 in a financial year, the portion of your concessional contributions above that threshold is taxed an additional 15%, on top of the standard 15% contributions tax — an effective 30% total.
Minimum pension drawdown rates.
Once you start an account-based pension, the government sets a minimum percentage of your balance you must draw down each financial year. There’s no maximum (unless you’re in transition-to-retirement phase). The minimum is based on your age on 1 July each year (or the pension start date in the first year).
| Age | Minimum annual drawdown |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 and over | 14% |
Worked example.
Catching up on concessional cap
Sarah is 58, earns $95,000, and has a Total Super Balance of $310,000. She only used $12,000 of her $30,000 concessional cap in 2025–26. In 2026–27 her standard cap is $32,500, and because her TSB is under $500,000 she can carry forward the unused $18,000 from 2025–26 — giving her up to $50,500 in concessional contributions this year before the extra tax applies.
Minimum drawdown at 67
Tom is 67 with $600,000 in an account-based pension. His minimum drawdown rate is 5%, so he must draw at least $30,000 this financial year, even in a year he’s spending less — he can always draw more, just not less.
Frequently asked questions.
Do employer contributions count toward my concessional cap?
Yes. Superannuation Guarantee contributions, salary sacrifice and any personal contributions you claim as a tax deduction all count toward the concessional cap together.
What happens if I go over a cap?
Excess contributions are generally included in your assessable income and taxed at your marginal rate, less a 15% offset for tax already paid, plus an interest charge. Rules differ for concessional and non-concessional excess — get advice before contributing near a cap.
Can I draw down less than the minimum?
No. The minimum percentage is a legislated floor for account-based pensions. You can draw more than the minimum at any time, but not less, in a given financial year.
Does the minimum drawdown apply from age 60?
The minimum applies once an account-based pension has started, whatever age that is (commonly from your preservation age). It is not tied specifically to age 60 — the percentage itself then increases in the age bands shown above.
Updates — what’s changed and when.
| Date | Change |
|---|---|
| 1 July 2026 | Concessional cap increased from $30,000 to $32,500. Non-concessional cap increased from $120,000 to $130,000 (bring-forward maximum now $390,000). |
| 1 July 2026 | Age Pension deeming thresholds increased to $66,800 (singles) and $110,600 (couples combined); deeming rates unchanged at 1.25% / 3.25%. |
| 1 July 2026 | Age Pension assets test full-pension and cut-off thresholds increased across all household types. |
| 1 July 2026 | Age Pension income test free areas increased to $226 (singles) and $396 (couples combined) per fortnight. |
| 1 July 2025 | General transfer balance cap increased to $2,000,000. |
| 1 July 2025 | Concessional cap increased from $27,500 to $30,000; non-concessional cap increased from $110,000 to $120,000. |
Apply this to your own plan.
Pension Pilot’s calculator uses these current caps and drawdown rules in your report, alongside your Age Pension modelling. These figures are educational and should be checked against official ATO and Services Australia sources before you make contribution decisions.