1 July 2026 changes
From 1 July 2026, a range of superannuation updates came into effect for the 2026-27 financial year.
The biggest change was Payday Super, meaning all super contributions are now payable more frequently. Find out how this benefits employees.
Here’s what employers and members need to know about the changes.
Contribution caps have increased
Both concessional (before-tax) and non-concessional (after-tax) contribution limits have increased in line with indexation:
- Concessional contributions cap rose from $30,000 to $32,500 per year
- Non-concessional contributions cap increased from $120,000 to $130,000 per year
The bring-forward rule has also lifted, allowing eligible individuals to contribute up to $390,000 over three years (up from $360,000). Find out more about contribution limits.
These changes provide greater opportunity for members to boost their retirement savings.
Transfer balance cap
The general transfer balance cap increased from $2 million to $2.1 million. This is the limit on how much super can be transferred into a retirement income account. For more information on the transfer balance cap, visit the Australian Taxation Office website at ato.gov.au. This change may benefit members approaching or entering retirement, allowing more savings to move into the retirement phase.
New tax for earnings on high super balances
The Australian Government has introduced an additional tax on higher super balances, known as Division 296. It only applies to balances over $3 million and introduces an additional 15% tax to the proportion of your realised total super earnings above that amount. Balances over $10 million will attract an additional 10% tax on top of this.
While it includes super accounts in accumulation and retirement phase, this measure is designed to better target super tax concessions and will affect only a very small proportion of members.
Co-contribution thresholds increased
The government co-contribution income thresholds were indexed.
| Before 1 July 2026 (2025-26) | From 1 July 2026 (2026-27) | |
| Lower income threshold | $47,488 | $49,293 |
| Upper income threshold | $62,488 | $64,293 |
| Maximum co-contribution | $500 | $500 |
This means more lower- and middle-income earners may be eligible for a boost to their super savings.
Find out how much you could receive based on your salary and how much you contribute.
Super Guarantee and other employer changes
The Super Guarantee (SG) rate remains at 12%, with no change for the 2026–27 financial year.
However, other employer-related changes include:
- Payday Super, requiring employers to pay super at the same time as salary and wages
- The ATO Small Business Superannuation Clearing House has also closed
- The maximum contribution base is increasing to $270,830 per year
These updates aim to improve the consistency and timeliness of super contributions.
Payday Super requires a significant change to the way employers pay super. We’ve been helping employers prepare for this for some time, but if you need more assistance, please contact your Employer Relationship Manager.
Paid parental leave
Super will be paid on Government-funded Parental Leave Pay for the first time. This was announced in the 2025 Federal Budget, however super contributions only start from 1 July 2026 for the 2025-26 financial year. This is being administered by the ATO.
A lump sum contribution will be paid directly to your super account after the end of the financial year in which you received parental leave payments from the Government. So, if you took parental leave in 2025-26, you'll receive a lump sum contribution after 1 July 2026. This change supports retirement outcomes for parents.