KEY POINTS
Making superannuation contributions continues to be a tax-effective planning tool in Australia, particularly in the form of personal super contributions, which have the effect of reducing an individual taxpayer’s taxable income, and their personal tax liability
Some of the key factors to be borne in mind are:
- Contribution limits or caps – in other words the maximum amount you can contribute to super each year – and making use of what are called carry forward concessional contributions.
- Personal super contributions must be received by the super fund before 30 June 2026 to be deductible in the 2026 tax year.
- What is called Div 293, which gives rise to additional tax payable where the taxpayer has a higher level of income.
SUPERANNUATION CONTRIBUTION LIMITS
Here are details of the limits on superannuation contributions:
| Concessional (before tax) This is employer + personal + salary sacrificed contributions | The carry forward unused concessional contributions cap | |
| Contribution limit | $30,000 annually Increasing to $32,500 from 1 July 2026 | You can carry forward unused concessional contributions from 1 July 2020 (the last 5 years) to increase the maximum amount of your personal superannuation contributions in a given year. |
| Age limit | Under 75 years If you are aged 67- 74 years old you are required to meet what is called the work test. | You need to be under the age of 75 and your contribution must be received by your super fund on or before 28 days following the end of the month in which you turn 75. |
| Tax rate paid by the super fund on these contributions | 15% | 15% |
| Total opening super balance | No restriction | Must be less than $500,000 as at 1 July 2025 |
DIVISION 293
- Who pays Div 293 tax
Individuals whose combined income for Div 293 purposes is over $250,000.
The components of income for Div 293 purposes are more than simply your taxable income – they are:
- Your taxable income (assessable income minus allowable deductions)
- Total reportable fringe benefits amounts
- A net financial investment loss
- A net rental property loss
- The net amount on which family trust distribution tax has been paid
- Super lump sum taxed elements with a zero tax rate
- Assessable first home super saver released amount
A further 15% tax is added to the standard 15% tax paid by super funds on contributions, meaning a 30% tax rate on affected concessional contributions.
- How it works
The ATO will automatically calculate the Div 293 tax after receiving your 2026 tax return, and will send a 2026 Div 293 Notice of Assessment to you if you have a Div 293 tax liability.
- Payment Options
You can pay the tax directly, or choose to release money from your superannuation fund to pay by completing a Division 293 election online.
YEAR END 2026 SUPERANNUATION CHECKLIST
Here is a checklist to help you with your end of 2026 tax year superannuation planning:
| Checklist item | Description | Checked and Actioned | |
| Make a personal super contribution | Identify the maximum available amount of the personal super contribution which you might make. Then determine the actual personal super contribution you want to make, and remit the contribution to your super fund. Funds should be received by your super fund on or before 30 June 2026. We suggest making super contributions on or before Thursday 25 June 2026. | ||
| Make an election. | Before you lodge your 2026 personal income tax return the super fund must issue a Section 290-170 Notice which confirms the tax deductible amount you can claim in your 2026 personal income tax return. The contribution itself does not allow you to claim a tax deduction. | ||
| Communicate with your tax agent | Advise your tax agent that you have made a personal super contribution, and forward the copy of the acknowledgement. | ||
| Div 293 additional tax | Be aware that if you have exceeded the threshold for Div 293 tax you will receive a separate Notice of Assessment from the ATO. |
HOW CAN BDH TAX HELP?
- If you are already a client we can review your personal tax situation as we can access information in relation to your personal tax which is available to us through the ATO’s tax agent portal.
Note: If you are not a client of bdh Tax – contact us as soon as possible by completing the enquiry form on this web page so we can discuss how we can help with your tax planning and tax compliance, and our fees.
- We can provide a record of concessional contributions relevant to the tax year ending on 30 June 2026, in the form of employer superannuation guarantee contributions and personal contributions.
- We can work with you to prepare a pro forma income tax calculation for the tax year ending on 30 June 2026, which brings together your estimated taxable income for the year, to identify the tax that will be saved if you make a personal superannuation contribution during the current tax year. This will include consideration of contributions made already, and the ability to make use of the presently unused carry forward concessional contributions cap.
Note: If you have moved to Australia recently you can still access the unused concessional contribution cap for the last five tax years, even if you were not a tax resident of Australia throughout those five years.
- We can then summarise the maximum personal super contribution which you might make, and the personal income tax you will save if you make the personal super contribution, so you can make an informed tax planning decision.
- If a Div 293 tax liability arises we can complete and submit a Div 293 election form with the Australian Taxation Office to ask that funds are released from your super fund to pay the Div 293 tax.
If you would like to discuss the above more fully with a view to receiving a fee proposal for our assistance please complete the enquiry form on this web page.