If you’ve ever wondered “How much can I put into my SMSF?” or “What’s the limit when I start a pension?” you’re not alone. Getting money in and out of your SMSF can feel like decoding a secret financial language… but trust me, once you know the rules, it’s a powerful way to take control of your financial future.

Getting Money Into Your SMSF

Before your SMSF can invest, grow and eventually pay you a pension, you need to get contributions in. And the ATO has very specific caps on how much you can add each year.

1. Concessional Contributions (Before-Tax): $30,000 a year

These include:

• Employer contributions

• Salary sacrifice

• Personal contributions you claim as a tax deduction

From 1 July 2025, the concessional cap is $30,000 per financial year.

These contributions are generally taxed at 15% in your fund - which for many people is lower than their marginal tax rate. A win for long-term compounding.

2. Non-Concessional Contributions (After-Tax): $120,000 a year

These are personal contributions made from your already-taxed money.

The non-concessional cap is $120,000 per year in 2025–26.

If you're under the relevant Total Super Balance thresholds, you may also be able to use the bring-forward rule, letting you pull forward up to three years’ worth of contributions in one go. Perfect for people who’ve sold a property, received a bonus, or want to accelerate their wealth early.

3. Your Total Super Balance (TSB) Matters

Your ability to make certain contributions depends on your TSB at 30 June the previous year.

If your balance is too high, you may be restricted or even blocked from making non-concessional contributions. It's the ATO’s way of ensuring caps benefit those still building, not those already maxed out.

Moving Into Pension Phase: What’s the Maximum?

Once you're ready to shift some or all of your SMSF into the retirement (pension) phase, another limit kicks in - and this one’s big.

The Transfer Balance Cap (TBC): $2 million

From 1 July 2025, the general Transfer Balance Cap is $2 million.

This is the maximum you can move into the tax-free pension phase. Earnings on assets supporting a retirement pension are generally tax-free, which is why this cap matters so much.

If you exceed the cap:

• You may have to remove the excess back to accumulation phase

• You might pay extra tax

• You could face stricter reporting requirements

The bottom line? Plan ahead and speak to us - especially if you’re close to the threshold or running multiple pensions.

Getting Money Out of Your SMSF

Once you’re in the pension phase and have met a condition of release (think retirement, reaching preservation age, terminal illness, etc.), your fund can start paying you a pension.

Your pension payments must meet minimum annual withdrawal percentages, but beyond that, SMSFs offer huge flexibility in how you structure your retirement income. This is exactly why younger generations are increasingly choosing SMSFs: control, transparency and strategic tax benefits.

Why This Matters for SMSFai Clients

The beauty of an SMSF is choice — but choice comes with responsibility.

At SMSFai, we make the complexity digestible. Whether you’re gearing up your contributions, navigating caps, or preparing for retirement phase, our tech-driven platform and expert team keep you compliant and confident.

The rules may be strict, but the opportunities are enormous when you know how to use them. And that’s exactly what we help trustees do every single day.

Final Word

At the end of the day, your SMSF is one of the most powerful wealth-building tools you’ll ever have. Getting money in and out wisely and within the rules will shape your long-term financial future more than almost any other decision.

And remember: just because you can contribute more or move to pension phase earlier doesn’t mean you should. Strategy beats speed every time and this is a great example of an area where professional financial advice is appropriate.

For a referral to a Financial Adviser, please contact us.