Last night the Government delivered the Federal Budget for 2026-27.

This year’s Budget comes at a time of global uncertainty, with rising inflation and slower economic growth. In response, the Government has focused on providing targeted cost of living support while pursuing longer-term economic reform.

There were few direct changes to superannuation, with no major new measures impacting most members. However, previously announced reforms, including Payday Super, remain on track.

We’ve summarised the key updates below. These announcements are proposals only. You can also read the full details at budget.gov.au.

Super update

Payday Super remains on track

Payday Super is still set to start from 1 July 2026.

From this date, employers will be required to pay super at the same time as your salary or wages, rather than quarterly. This means your super should reach your account sooner, giving your money more time to grow.

More frequent payments will also make it easier to keep track of your super and help reduce the risk of unpaid contributions.

There’s nothing you need to do, but it’s a good opportunity to check your personal details are up to date with your employer and your super fund.

More super for low-income earners

$3 million super tax cap

The Budget did not include any new updates on the additional tax on super balances above the $3 million and $10 million thresholds. The measure commences from the 2026-27 income year and applies an overall tax rate of up to 30% to earnings on superannuation balances between $3 million and $10 million. The overall tax rate applied to earnings on superannuation balances above $10 million will be up to 40%. This will affect a small number of members with higher balances.

For the majority of members today, this change won’t apply and won’t impact how your super works.

Other super-related updates

Importantly, broader tax changes in the Budget, including reforms to capital gains tax, will not apply to super funds. Anyone receiving the Age Pension or other income support will also be exempt from the new minimum tax on capital gains.

While these changes don’t directly affect your super, they may change how super compares to other ways of saving and investing.

From 1 July 2027, negative gearing on established residential properties and the 50% capital gains tax discount will be reduced for investments held outside of super. Super funds are exempt from the negative gearing changes and the 50% CGT discount changes for directly held assets. 

The Government also announced funding to strengthen oversight of managed investment schemes and signalled potential changes to the super performance test to support long-term investment.

The Budget also confirmed that super will continue to be paid on Government-funded Paid Parental Leave, helping support more equitable retirement savings.

Additional funding has also been allocated to strengthen protections against fraud and scams across the financial system.

No major changes for super

Budget highlights

Workers will receive additional tax relief, including:

• $250 Working Australians Tax Offset from 1 July 2027
• A new $1,000 instant tax deduction from 1 July 2026, allowing eligible workers to claim work-related expenses without receipts

These measures are designed to put more money back into people’s pockets and simplify tax time.

Housing and property reforms

There are significant changes to investment property tax settings:

• Negative gearing will be limited to new builds only from 1 July 2027 (applies to properties acquired from 7.30pm AEST 12 May 2026)
• Changes to discretionary trust taxes and capital gains tax will reduce tax concessions for some investments

These reforms aim to encourage new housing supply and improve access for first home buyers, while protecting existing investments through transition arrangements.

Healthcare and cost of living

The Government is investing:

• $25 billion in public hospitals
• $1.8 billion in urgent care clinics
• $3.7 billion for aged care support

These measures aim to improve access to healthcare, support older Australians and ease pressure on households.

Business and the economy

Support for businesses includes:

• Tax relief and incentives for small businesses and start-ups
• A permanent $20,000 instant asset write-off from 1 July 2026
• Continued investment in infrastructure and defence

The Budget also includes broader tax reforms, including changes to how some investments and trusts are taxed over time.

Economic conditions are expected to remain resilient, although growth may slow and inflation is expected to rise before easing.

The bigger picture

This year’s Budget is about balancing short-term relief with longer-term reform. While households receive modest support now, broader changes are aimed at improving housing affordability, strengthening public services and making the tax system fairer over time.

Super remains a stable, long-term system, with no new taxes announced on retirement savings.

What you can do

There’s nothing you need to do in response to this Budget. But it’s always a good idea to stay on top of your super.

You can do this anytime in Member Online: 

• Check your super balance
• Make sure your details are up-to-date
• Review your investment options if your circumstances have changed 

We're here for you

We’ll keep you updated on any changes that may affect your super and your financial future. To learn more, visit our Education hub and keep an eye on your email inbox for our regular updates.

All information, rates and/or fees are current at the time of production and are subject to change. Changes to government legislation and superannuation rules made after this time may affect the accuracy of the information provided. You may wish to obtain professional advice before acting on any of the information contained in this document. 

This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you.