Exceeded your super contribution cap? What happens and how to respond

If your concessional contributions exceed your cap (generally $30,000 for 2025–26 and $32,500 for 2026–27, plus any carry-forward amounts), the ATO adds the excess to your assessable income and taxes it at your marginal rate, with a 15% tax offset for the contributions tax already paid by the fund. You can elect to release up to 85% of the excess from your fund to help pay the bill. If your non-concessional contributions exceed your cap, you can elect to withdraw the excess plus 85% of associated earnings (the earnings are then taxed at your marginal rate), or leave it in and pay excess non-concessional contributions tax at 47%. In both cases the ATO sends a determination after your funds report the contributions, usually months after the year ends, and the deadlines to respond are short.

This guide explains each outcome, with examples, and the situations that cause most excesses. It is general information; the ATO's determination letter sets out your actual choices and deadlines.

Excess concessional contributions

The excess concessional contributions charge (an interest-like charge) was abolished from the 2021–22 income year, so the cost is now the marginal tax difference rather than an extra charge.

Illustrative example, 2026–27: Sam has a marginal rate of 39% (37% + 2% levy) and concessional contributions of $36,500 with no carry-forward amounts. Excess = $36,500 − $32,500 = $4,000.

• Tax on the excess at 39%: $1,560.
• Less the 15% offset: −$600.
• Extra tax payable: $960.
• Sam can release up to 85% × $4,000 = $3,400 from the fund to help pay it.

If the excess is not released, it also counts toward the non-concessional cap, which can create a second excess for someone already contributing near that cap.

Excess non-concessional contributions

Illustrative example: Jo contributes $150,000 of non-concessional contributions in 2026–27 but cannot use a bring-forward (because her total super balance at 30 June 2026 was $2.0 million, which allows only the $130,000 annual cap). Excess = $20,000.

• If she elects release, $20,000 plus 85% of the associated earnings is paid to her; the associated earnings (say $1,200, illustrative) are taxed at her marginal rate with a 15% offset.
• If she doesn't, tax at 47% = $9,400.

Release is almost always cheaper, but the money leaves super.

Why excesses happen

• Timing of employer contributions. An employer pays June's super in early July, or pays July's in late June, putting two quarters in one year. Contributions count when the fund receives them.
• Bonuses and salary sacrifice. A bonus paid with super guarantee, plus salary sacrifice, lifts the total unexpectedly.
• Several employers or funds. Each employer pays super guarantee independently. If you have several employers, the ATO offers an employer shortfall exemption certificate in some cases so one employer can stop paying.
• Personal deductible contributions. A notice of intent turns an after-tax contribution into a concessional one, and it can push you over.
• Misreading the bring-forward rule. A bring-forward period triggered in an earlier year keeps that year's cap. Higher caps from 1 July 2026 generally don't top it up.
• Using an out-of-date total super balance to test carry-forward or bring-forward eligibility.
• Insurance premiums or defined benefit amounts paid by an employer that count as contributions.

How to prevent an excess

1. Check your contributions and total super balance in ATO online services before making any large contribution.
2. Add up employer super guarantee, salary sacrifice and planned deductible contributions for the year, using the date the fund will receive them.
3. Leave a buffer below the cap for late or early employer payments.
4. For non-concessional contributions, confirm with the fund or the ATO whether you are in an existing bring-forward period.
5. Read the super caps guide and the carry-forward example.

Responding to a determination

• Read the deadlines in the letter. Release elections generally must be made within 60 days of the determination.
• If you think the determination is wrong (for example, the fund misreported a contribution), contact the fund to correct its reporting, then the ATO.
• You can object to a determination within the time limits stated, or ask the ATO to disregard or reallocate contributions in special circumstances. This discretion is narrow and rarely granted for simple timing mistakes.

FAQ

Do excess concessional contributions affect Division 293?

Excess concessional contributions are not low tax contributions, so they are not included in the Division 293 calculation; they are taxed at your marginal rate instead.

Can I fix an excess by withdrawing it myself?

Only through the release process after a determination. Funds cannot generally return contributions on request.

Will the ATO charge a penalty?

There is no separate penalty for an excess; the extra tax is the consequence. Late payment of the resulting tax attracts the general interest charge.

Should I get advice?

If the excess is large, involves a bring-forward period or a self-managed fund, a registered tax agent or licensed adviser can help with the choices.

Sources

• Australian Taxation Office — excess concessional and non-concessional contributions, release authorities, employer shortfall exemption certificates
• Federal Register of Legislation — Income Tax Assessment Act 1997, Divisions 291 and 292; Taxation Administration Act 1953, Schedule 1 Division 131
• Moneysmart — guidance on super contributions

Related: Division 293, common tax return mistakes.