Why are Australians contributing more to super in 2026?

CFS FirstChoice members have significantly increased their voluntary contributions to super over the past 14 months, internal CFS contributions data shows¹. 

Personal voluntary contributions made by FirstChoice members to super jumped significantly in the 2025-26 financial year compared with the previous comparable period – and increased further immediately after 1 July 2026¹. 

Over the first two months of the 2026-27 financial year, FirstChoice personal voluntary contributions to super were 28.7% higher than for the same period a year earlier (excluding salary sacrifice and other employer and government payments)¹. 

Australians generally increased the amount of money they invested in voluntary contributions to super in the 2025-26 financial year, superannuation industry data shows².

Member contributions totalled $71.9 billion in the year to 30 June 2026 – an increase of 21% compared with the previous financial year, according to figures released by the Australian Prudential Regulation Authority². 

Australians made 38%, or $28.1 billion, of all super contributions nationally in the three months to 30 June 2026, with employer contributions making up the remaining $46.1 billion (62%)³.  

Sharp increases in voluntary super contributions from 1 July 2026 coincided with changes to tax rules affecting capital gains tax (CGT) and negative gearing that were announced in the May Federal Budget and have now been legislated. The strength of recent super returns and general retirement planning activity may also have influenced behaviour.

Super was exempt from the CGT changes, retaining its 33% Capital Gains Tax discount. Assets in super are generally taxed at 15% rather than an individual’s marginal tax rate, resulting in an effective capital gains tax rate of 10% for investments held longer than 12 months.

It’s worth noting that investment returns are not guaranteed and super, like many other investments, remains subject to market risk. Access to super is also generally restricted until a condition of release is met.

For all assets outside super, including property and shares, the 50% discount on CGT on investments held for more than 12 months will be replaced from 1 July 2027 with CPI indexation. 

Under the new rules, a minimum 30% tax on realised capital gains will also apply, with some exemptions. 

Transitional rules apply for assets purchased prior to 1 July 2027, with the 50% individual CGT discount applying to capital gains that accrue up until 30 June 2027. 

Negative gearing into residential property will be restricted under the new rules. 

"Many CFS members already make voluntary super contributions to their super as part of their retirement planning,” she said. 

“Since the Federal Budget, voluntary contributions have tracked higher than we would typically expect, with the strongest growth among members under 40.  

"The capital gains tax changes don't take effect until 1 July next year, and that will be a key milestone in understanding how members and investors ultimately respond,” she added.

"While it is still too early to draw definitive conclusions, at the moment the data suggests Australians are paying close attention to how new policy settings may influence their long-term financial and retirement outcomes.”

Recent increases in voluntary contributions to super across all APRA-regulated super funds have coincided with a fourth consecutive year of returns that were above the historical average⁴. 

Data from independent research firm Chant West indicates the median growth fund return was 9% or more for each of the past four financial years, while since the introduction of compulsory super in 1992, the annualised return has been 8%⁴.

That puts the cumulative return at 44% over the four-year period to 30 June 2026⁴. This means that if you had invested $100,000 at the start of the four-year period in a super fund that delivered average returns for each of those years, at the end of the period your money would have grown to $144,000, less administration fees⁵. This is a hypothetical example based on median growth fund returns and does not reflect actual returns achieved by any individual investor.

Source: Chant West⁴.

Above-average returns combined with the low tax rate on contributions within super means your money can compound quickly compared with other investment types. 

While recent strong super fund returns may be one factor contributing to increased interest in voluntary contributions, future returns may differ from past outcomes and past performance is not a reliable indicator of future performance. And, unlike most other investments, super generally cannot be accessed until you turn 60 and meet a condition of release, such as retiring from a job.  

See how CFS performed: CFS delivers fourth consecutive year of double-digit returns for members invested in MySuper Lifestage growth and balanced options