Super is one of the few legal tax breaks a tradie gets — money going in is taxed at 15% instead of your marginal rate. But there are caps, and blowing through them is taxable. Here are the 2025–26 caps, the three ways to put extra in, and the government top-up for lower-income years.
The caps (2025–26)
Two separate caps limit what you can contribute each year:
- Concessional (before-tax) cap: $30,000. Covers your SG, salary sacrifice and personal deductible contributions combined, across all funds. Money in is taxed 15% in the fund.
- Non-concessional (after-tax) cap: $120,000. After-tax money you have already paid tax on and do not claim a deduction for.
From 1 July 2026 these are indexed up — projected to $32,500 concessional and $130,000 non-concessional — but treat the 2026–27 figures as indexed estimates and confirm them closer to the date. Go over a cap and the excess is effectively taxed back at your marginal rate (and can attract extra charges), so the caps are a ceiling to plan against.
Salary sacrifice (for employees)
You agree in writing for your employer to pay part of your gross wage into super, on top of compulsory SG:
- The sacrificed amount is taken before tax, so it is not subject to PAYG withholding like normal wages.
- It is taxed 15% in the fund (or 30% if your income plus concessional contributions exceeds $250,000 — the Division 293 tax).
- If your marginal rate is above 15% (most full-time tradies), you come out ahead.
Worked example: sacrifice $100 of wages. Taken as cash at a 34.5% marginal rate, you would keep about $65.50. Salary-sacrificed, the $100 goes to super and is taxed 15% — $85 lands in your super. Same $100, about $20 better off, just locked away until preservation age. It still counts toward the $30,000 concessional cap (and any EBA-mandated extra contributions count too).
Personal deductible contributions (the sole-trader lever)
If you are self-employed (or want to top up beyond salary sacrifice), you can contribute from your own pocket and claim it as a deduction — turning after-tax money into a concessional contribution:
- Make the contribution to your fund before 30 June.
- Lodge a "Notice of intent to claim a deduction" with the fund, stating the amount.
- Get the fund's written acknowledgment — without it, you cannot claim.
- Claim it in your tax return at "Personal super contributions".
Keep the total (SG + salary sacrifice + this) within the $30,000 cap. It is taxed 15% in the fund and reduces your taxable income — the same arbitrage as salary sacrifice, but you control the timing.
Carry-forward and bring-forward
Two rules let you put in more than the annual cap:
- Carry-forward (concessional): if your total super balance was under $500,000 at the previous 30 June, you can use unused concessional cap from the last 5 years on top of this year's cap — ideal for a big-income year or after a profitable job. The ATO shows your available carry-forward amount in myGov.
- Bring-forward (non-concessional): if eligible, bring forward up to 3 years of the NCC cap — up to about $360,000 at the current $120,000 cap — useful after selling an asset or a business.
Government co-contribution (lower-income years)
If you are on a lower income and put after-tax money in (no deduction claimed), the government tops it up:
- Contribute $1,000 after-tax and earn under about $47,488 (2025–26) → the government adds the maximum $500 (50c per $1).
- The top-up tapers between $47,488 and $62,488, and cuts out above $62,488.
- You must be under 71, have a total super balance under $2 million, earn at least 10% of your income from work or business, and lodge a return. (Claim a deduction on that contribution and it becomes concessional — which disqualifies it from the co-contribution.)
Common mistakes
- Exceeding the $30,000 concessional cap (remember SG counts toward it).
- Forgetting the notice of intent — no acknowledgment, no deduction.
- Claiming a deduction on a contribution you wanted the co-contribution on.
- Assuming the 2026–27 figures are locked — they are indexed estimates.
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