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Wealth

Super and tax

Super contribution caps and tax on large balances.

Super is taxed lightly, so yearly contributions are capped. A high income or a large balance pays more tax. These are the 2026–27 limits.

Concessional cap

$32,500A year before tax, including your employer’s super

Non-concessional cap

$130,000A year after tax, or $390,000 over 3 years with a balance under $1.84 million

Transfer balance cap

$2.1 millionThe most you can move into a tax-free retirement pension

A high income

Incomes above $250,000

  • Above $250,000 of income and contributions, Division 293 adds 15% on your contributions.
  • With a total balance under $500,000, unused concessional cap from the last 5 years carries forward.
  • The ATO’s online services show your balance and your unused cap.

Source: ATO, 2026–27.

Work it out on Super

Balances over $3 million

Large balances

  • From 1 July 2026, earnings on the part of a balance above $3 million are taxed at 30% in total, and above $10 million at 40%.
  • Only realised earnings count, not gains on paper.
  • Both thresholds rise with inflation: $3 million in steps of $150,000 and $10 million in steps of $500,000.
  • It passed Parliament on 10 March 2026.

Source: Treasury (October 2025 and March 2026); ATO.

What to know

RequirementThe $3 million super tax is lawFrom 1 July 2026, earnings on the part of a super balance above $3 million are taxed at 30% in total, and above $10 million at 40%. It passed Parliament on 10 March 2026.Source: Treasury; ATO

What we don’t

  • Say how much to put into super

Wealth

Self-managed super funds, trusts and advice for large balances.

With a large balance, structures and advice matter more: a self-managed super fund, a family trust or company and a licensed adviser.

A self-managed super fund

Trustees of their own fund

  • Up to 6 members, who are generally all trustees and legally responsible for the fund, even with an adviser. Trustees spend on average more than 8 hours a month on it.
  • Its fixed costs weigh most on a small balance.
  • It must be run from Australia. Trustees can be away for up to 2 years; move away for good and the fund can fail the residency test and be taxed at the top rate.
  • Proposed, not yet law: a levy rise from $259 to $295, and compulsory trustee education.

Source: Moneysmart (June 2026); ATO; Treasury (August 2026).

Trusts and companies you hold

Family and investment structures

For a family or investment trust, or a company that holds investments, we hold and read the deeds and documents and track their dates. Your accountant advises on the structure.

  • A trust needs its trustee resolution by 30 June each year.
  • The ATO can tax the trustee where a beneficiary’s share really benefits someone else and cuts tax.
  • A company has an ASIC annual review and fee each year.
  • Practice entities are under Private Practice.

Source: ATO, including TR 2022/4; ASIC.

What to know

RequirementA trust needs a resolution by 30 JuneA family or investment trust needs its trustee resolution made by 30 June each year. Your accountant prepares it; we make sure the date is not missed.Source: ATO
Good to knowAdvice pays most on a large balanceA licensed adviser charges a fee, so advice pays most where the balance is large. We raise it then, and only if you want it.Source: Vaile

What we do

  • Hold and read your loan, trust and company documents

What we don’t

  • Give financial or structuring advice. A licensed adviser and your accountant do that