The annual cap for concessional (pre-tax) super contributions is increasing to $32,500. This is great news, if you want to give your savings a boost for retirement. In this article, we discuss how contributions to SASS count towards the concessional cap and how you can take advantage of this opportunity to save on tax and maximise your SASS benefit as you approach retirement.
What has changed?
Several key superannuation caps and thresholds have increased. Here’s a snapshot:
| Cap or threshold | Amount |
|---|---|
| Concessional (before-tax) contributions cap | $32,500 |
| Non-concessional (after-tax) contributions cap | $130,000 |
| Non-concessional bring-forward (3 years) | Up to $390,000 over three years, if your total super balance was under $1.84 million at 30 June 2026 |
| Total super balance cap for making non-concessional contributions | $2.1 million – you can’t make non-concessional contributions if your total super balance was at or above this at 30 June 2026r |
A tax-effective way to boost your retirement savings
Depending on your circumstances, making additional super contributions may provide tax advantages compared with holding savings outside super. There are limits on how much extra you can contribute to your super each financial year before additional tax may apply. But because SASS is a defined benefit scheme, how these caps apply to you works a little differently to a standard accumulation fund.
Calculating your concessional contributions to SASS
Within SASS, your before-tax personal contributions, plus a notional amount representing your employer contribution, are combined and counted towards the cap. To work out your concessional contributions to SASS (including SANCS), use your total benefit factor from the table matching your membership type and insert it into this formula below.
Standard SASS members – total benefit factor
| Contribution role benefit category | Sass benefit factor | SANCS benefit factor | Total benefit factor |
|---|---|---|---|
| 3% or less | 7.2% | 1.2% | 8.4% |
| 4% | 8.4% | 1.2% | 9.6% |
| 5% | 8.4% | 1.2% | 9.6% |
| 6% or more | 9.6% | 1.2% | 10.8% |
Former SPSSS members – total benefit factor
| Contribution role benefit category | Sass benefit factor | SANCS benefit factor | Total benefit factor |
|---|---|---|---|
| 3% or less | 7.2% | 1.2% | 8.4% |
| 4% | 8.4% | 1.2% | 9.6% |
| 5% | 10.8% | 1.2% | 12.0% |
| 6% or more | 12.0% | 1.2% | 13.2% |
Former NRF members – total benefit factor
| Contribution role benefit category | Sass benefit factor | SANCS benefit factor | Total benefit factor |
|---|---|---|---|
| 3.6% or less | 7.2% | 1.2% | 8.4% |
| Over 3.6% to 4.3% | 8.4% | 1.2% | 9.6% |
| Over 4.3% to 5.4% | 8.4% | 1.2% | 9.6% |
| Exactly 5.5% | 9.6% | 1.2% | 10.8% |
| Over 5.5% | 9.6% | 1.2% | 10.8% |
Rates for 1 July 2026 to 1 July 2027.
Been a SASS member for 30 years or more?
If you have 30 or more years of SASS membership and have accrued the maximum 180 benefit points at the start of the financial year, your total benefit factor drops to 1.2% (so only the SANCS benefit factor counts towards your notional employer contribution). This often creates more room within the cap to make additional concessional contributions to another super fund. If you reach 30 years and 180 points partway through the financial year, an apportionment applies for that year. Former SPSSS members have slightly different rules between ages 55 and 58 – call State Super Customer Service on 1300 130 095 if this applies to you.
Special cap protection
A special condition means concessional contributions to SASS are always deemed to be within the cap, unless you’ve lost this protection. For most SASS members, State Super only reports the amount up to the cap to the ATO. You lose this protection permanently if you move to a higher benefit category than the one you were in on 12 May 2009 or 5 September 2006 – the dates the government announced changes to the contributions cap rules. Even when the special conditions apply, if you’re making any additional concessional contributions to another fund, you should ensure your total contributions across all your super accounts are within the cap.
To check whether you have cap protection, call State Super Customer Service on 1300 130 095, or check ‘your membership details – Contribution cap protection’ on your latest statement.
Carry-forward concessional contributions
If your total super balance was under $500,000 at 30 June last year, and you haven’t used your full concessional cap in one or more of the last five financial years, you may be able to carry forward the unused amount. This can help you make additional tax-effective contributions in the years leading up to retirement – for example, by increasing your salary sacrifice contributions to SASS, or making deductible personal contributions to another super fund if you have one.
Non-concessional contribution cap
If you are not making your personal contributions to SASS via salary sacrifice, then they will count towards the non-concessional contributions cap.
The non-concessional cap is $130,000 a year. If you’re under 75 years of age on 1 July, you may be able to bring forward up to three years of after-tax contributions – up to $390,000 over three years – provided your total super balance was under $1.84 million at 30 June 2026. Keep in mind you won’t be able to make non-concessional contributions at all if your total super balance was $2.1 million or more at 30 June 2026.
You can’t make additional lump-sum contributions to SASS itself, but you could add to your retirement savings by making after-tax (non-concessional) contributions to another super fund, up to the relevant cap.
You can also use proceeds from an inheritance or an asset sale to boost your retirement savings. For example, if you sell an investment property and contribute the proceeds into super, this will generally count as a non-concessional contribution, subject to the cap.
Why this matters for SASS members
Making additional contributions can help you save on tax and boost your retirement savings before you retire, whether it’s through increasing your salary sacrifice contributions to SASS, or contributing to super outside SASS.
These changes may be worth a closer look if you:
- are considering making additional contributions before retirement to boost your SASS benefit
- have super outside SASS and want to maximise your retirement savings alongside your SASS benefit
- have reached 180 points – once your notional SASS benefit factor drops to 1.2%, there’s usually more room in the cap to contribute to another super fund and boost your retirement savings
When should you seek advice?
It’s worth speaking with an Aware Super financial planner if you have multiple super accounts, you’re planning to retire in the next few years, you’re considering making large contributions, or you’re unsure how the transfer balance cap applies to your situation.
An Aware Super financial planner can help you understand how the cap changes apply to your circumstances, and how your SASS benefit and any other super savings can work together to support your retirement goals.
FAQ
Possibly, yes. If your total super balance was under $500,000 at 30 June last year, you may be able to carry forward unused concessional cap amounts from the last five years, on top of this year’s $32,500 cap. You could also make after-tax contributions to a super fund outside SASS, up to the non-concessional cap. Because everyone’s situation is different, it’s worth speaking with an Aware Super financial planner before making extra contributions, to make sure it’s the right move for you.
Once you’ve reached 30 or more years of SASS membership and the maximum 180 benefit points, your notional SASS benefit factor drops to 1.2%, which usually leaves more room within the concessional cap for contributions to another super fund.
Watch our video what it means to reach 180 points to learn more about your options. If you'd like help understanding what it could mean for your situation, an Aware Super financial planner can talk you through your options and help you make informed decisions.
Yes. Since you can’t make additional lump-sum contributions to SASS, you could contribute the proceeds to another super fund as a non-concessional (after-tax) contribution, up to the relevant cap – including, potentially, the three-year bring-forward amount if you haven’t used it before. An Aware Super financial planner can help you work out how much you’re able to contribute and the best way to do it.
General advice only. Consider your objectives, financial situation or needs, which have not been accounted for in this information and read the relevant PDS and TMD before deciding to acquire, or continue to hold, any financial product. Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super. You should read the Financial Services Guide, before deciding about our financial planning services. Issued by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340), trustee of Aware Super (ABN 53 226 460 365)
Before changing your SASS contribution rate, it’s important to understand you may lose a special contribution cap protection. By changing your contribution rate may mean you lose the special condition for SASS members, which deems all before-tax contributions to be within the cap limits. State Super will report only the amount up to the cap to the ATO for members with this special contribution cap protection. Members lose this special condition if they move to a higher benefit category than the category they were in on either 12 May 2009 or 5 September 2006.
Before you salary sacrifice to your super you should consider your current financial situation and how much additional money you can afford to contribute to your super. You generally won't be able to access extra contributions until you retire. Salary sacrifice can be a tax-effective strategy and usually suits middle to higher income earners.