Super Tax Concessions Calculator 2026-27

How Super Tax Concessions Work in 2026-27

Superannuation tax concessions are the difference between the flat 15% tax on contributions paid inside your super fund and the higher marginal tax rate you would pay if that money were received as ordinary income. For most Australian workers, this represents a significant tax saving. For the 2026-27 financial year, the concessional contribution cap is $30,000 per year, which includes employer Superannuation Guarantee (SG) contributions at 12%, salary sacrifice amounts, and personal deductible contributions. Non-concessional contributions (after-tax money) have a separate cap of $120,000 per year, with a three-year bring-forward rule allowing up to $360,000 in a single year for those under 75. The Low Income Superannuation Tax Offset (LISTO) effectively refunds the 15% contributions tax for individuals earning $37,000 or less, ensuring low-income earners do not pay more tax on super than on their regular income. The government co-contribution provides up to $500 in matching for eligible individuals earning up to $60,400 who make personal non-concessional contributions. Based on ATO rates from ato.gov.au, effective 1 July 2025.

Division 293 and Division 296 Explained

Division 293 imposes an additional 15% tax on concessional super contributions for individuals with combined income and super contributions above $250,000, bringing the total tax on those contributions to 30%. This measure ensures high-income earners receive a more proportionate tax concession compared to lower earners. The taxable amount under Division 293 is the lesser of the excess above $250,000 or the total concessional contributions for the year. Starting from 1 July 2025, Division 296 introduces an additional 15% tax on investment earnings attributable to super balances above $3 million. This means individuals with very large super balances will effectively pay 30% tax on earnings related to the portion exceeding $3 million (the standard 15% earnings tax plus the 15% Division 296 surcharge). The Division 296 calculation uses a proportional method based on the ratio of the balance above $3 million to the total balance. These provisions are designed to ensure the super system provides retirement income rather than unlimited tax-advantaged wealth accumulation.

Maximizing Your Super Tax Benefits

To maximize your super tax concessions in 2026-27, consider using the full $30,000 concessional cap through a combination of employer SG and salary sacrifice or personal deductible contributions. If your employer contributes 12% of a $100,000 salary ($12,000 in SG), you could salary sacrifice an additional $18,000 to reach the cap. The carry-forward rule allows you to use unused concessional cap space from the previous five years if your balance was below $500,000, potentially enabling larger one-off contributions. For those earning between $37,000 and $60,400, making personal non-concessional contributions can trigger the government co-contribution of up to $500. Timing contributions near the end of financial year and reviewing your total super balance before 30 June can help you avoid exceeding caps and triggering excess contribution penalties. Always check your current contribution totals via your myGov account linked to the ATO. Last updated: April 2026.

Who Benefits Most From Super Concessions

The value of super tax concessions depends primarily on your marginal tax rate. Someone earning $180,001 or above pays 47% marginal tax (including Medicare levy), meaning each dollar contributed to super saves 32 cents in tax compared to the 15% super contribution tax. A person earning $45,001 to $120,000 pays 34.5% marginal tax, saving 19.5 cents per dollar. Those earning under $18,200 (the tax-free threshold) receive no immediate tax benefit from concessional contributions because they already pay no income tax, though LISTO may refund the 15% super tax for incomes up to $37,000. Self-employed individuals can claim personal super contributions as a tax deduction, making super one of the most effective tax planning tools available in Australia.