Below is a breakdown of the changes from 1 July 2026
Transfer Balance Cap to increase to $2.1 million
From 1 July 2026, the general Transfer Balance Cap (TBC) – ie the amount you can convert to pension phase – will increase from $2 million to $2.1 million.
This continues the recent pattern of indexation:
- $1.7m on 1 July 2021
- $1.9m on 1 July 2023
- $2.0m on 1 July 2025
- $2.1m coming on 1 July 2026
Who benefits from the increase?
- Individuals yet to start a retirement phase income stream by 1 July 2026 will receive the full $2.1m personal TBC when they commence their first pension.
- Those who have already used part of their cap will receive only proportional indexation, based on the highest percentage of the cap they’ve previously used.
- Individuals who have fully used their personal TBC at any time prior to 1 July 2026 will not receive any increase.
Contributions caps set to increase
Two key contribution thresholds will also be indexed from 1 July 2026:
Concessional Contributions (CC) cap
- Increasing from $30,000 to $32,500
Non-Concessional Contributions (NCC) cap
- Increasing from $120,000 to $130,000, as the NCC cap remains set at four times the concessional cap.
These changes flow through to related contribution rules and thresholds, including bring‑forward eligibility and TSB limits.
Impacts on bring-forward rules and Total Super Balance (TSB) eligibility
Higher TSB limit for NCC eligibility
From 1 July 2026, the maximum TSB threshold to make NCCs will increase from $2.0m to $2.1m.
This may open the door for individuals who were previously over the limit to make fresh non‑concessional contributions in 2026–27.
Bring-forward periods remain unchanged for those already in one
If a member has already triggered a bring-forward period prior to 1 July 2026:
- Their cap amount stays fixed, and
- The timeframe for their bring‑forward period does not extend.
With multiple thresholds increasing simultaneously, the 2026–27 financial year will present new planning opportunities — and potential pitfalls. Contribution timing, pension commencement strategies, and monitoring TRIS status will be particularly important in the lead‑up to 1 July 2026.
As always, these strategies need to be considered in the context of current legislation and any future Federal Budget announcements that may impact superannuation policy.
If you’d like help reviewing your strategy ahead of these changes, our SMSF and private wealth advisers are here to support you.