New financial year, new super changes! There are a few important changes to super coming into effect from 1 July 2026.
Whether you're just starting out, mid‑career, thinking about retirement, or already retired, these updates may affect how your super is paid, how much you can contribute, or how your retirement income is assessed. Here's a summary of what's changing and what it means for you.
What's changing at a glance
| What’s changing |
Before 1 July 2026 |
From 1 July 2026 |
| When super is paid (Payday Super) |
At least quarterly |
Every pay cycle |
| Before-tax (concessional) contribution cap |
$30,000 |
$32,500 |
| After-tax (non-concessional) contribution cap |
$120,000 |
$130,000 |
| Transfer balance cap |
$2.0 million |
$2.1 million |
| Super on Paid Parental Leave |
Limited |
Up to 130 days at 12% SG |
| Tax on balances over $3M |
N/A |
New Division 296 tax applies |
| Government co-contribution thresholds |
$47,488 (lower income threshold)
$62,488 (higher income threshold) |
$49,293 (lower income threshold)
$64,293 (higher income threshold) |
What about the Super Guarantee?
The super guarantee rate is not changing this financial year. It stays at 12%, which took effect from 1 July 2025. No further increases have been announced.
The big changes to super coming on 1 July 2026
1. Payday super
Before Payday Super, your employer only needed to pay your super into your fund at least every three months. From 1 July 2026, your employer will have up to 7 working days to make sure your super reaches your super fund. This is good news, because your super starts compounding sooner, and it's much harder for unpaid contributions to go unnoticed.
Case Study: Meet Jessica, 32, a full-time nurse
Jessica earns $85,000 a year. Under the old rules, her employer only needed to make super payments quarterly, as per the ATO schedule. From 1 July 2026, it'll arrive with every pay run. Jessica doesn't have to do anything differently, but over a 30-year career, the earlier compounding may impact her balance.
2. Contribution caps increase
You can put more into super this year.
The ATO has confirmed that the limits on how much you can contribute to super are going up from 1 July, 2026. If you've been contributing to your maximum, you now have a little more room.
| |
2025–26 |
2026–27 |
| Before-tax (concessional) cap |
$30,000 |
$32,500 |
| After-tax (non-concessional) cap |
$120,000 |
$130,000 |
Case study: Meet Sam, 48, a full‑time retail worker
Sam earns $60,000 a year and is thinking about ways to grow super for retirement. Sam asks their employer to put some pre‑tax pay into super as a salary sacrifice contribution. As salary sacrifice contributions are taxed at 15% inside super instead of Sam's marginal tax rate of 30%, Sam pays less tax on that money and more of it ends up in super, compounding over time.
What this means for carry-forward and bring-foward rules
Higher contribution caps also flow through two other rules worth knowing about.
- Carry‑forward lets you use unused before‑tax cap amounts from the past five years to make a bigger contribution. To be eligible, your total super balance needs to be under $500,000.
- Bring‑forward lets you use up to three years' worth of after‑tax cap amounts in a single year. To be eligible, you must be under 75, and your balance must be under $2.1 million.
Both rules now benefit from the higher caps, meaning there's a little more room available for members who are eligible.
3. Super on Paid Parental Leave scheme
New parents will now receive more super on their parental leave payments.
If you've qualified for the Parental Leave Pay scheme, you'll also receive super on those payments. And from 1 July 2026, the scheme will expand to 130 days (26 weeks), with a 12% superannuation contribution added to government payments for babies born or adopted from 1 July 2025.
This is a win for anyone taking time out of work to care for a child and is designed to help to lessen the gender gap and super gap.
4. Income tax rate reduction
A small tax cut means a little more in the pocket.
From 1 July 2026, the tax rate on income between $18,201 and $45,000 is dropping. It drops again the following year as detailed in the table below.
| When |
Tax rate on $18,201–$45,000 |
Annual saving (up to) |
Per fortnight |
| Now (2025–26) |
16% |
— |
— |
| From 1 July 2026 |
15% |
$268 |
~$10 |
| From 1 July 2027 |
14% |
$536 |
~$21 |
This doesn't directly change your super, but it means a little more in your take‑home pay. The cut is applied automatically through your employer's payroll, so you don't need to do anything.
5. New tax on super balances over $3 million
Bigger super balance? Bigger tax on earnings.
From 1 July 2026, a new tax applies to earnings on the portion of a super balance above $3 million. This affects a very small number of Australians, but if your balance is approaching that range, it's worth getting personal financial advice sooner rather than later.
If you're approaching retirement or already retired
Whether you’re just starting to approach retirement, have slowed down work, or are already retired, here is how some 1 July changes may affect you.
Transfer balance cap increased to $2.1 million
There's a limit on how much super you can move into a retirement account where your earnings are tax‑free. From 1 July 2026, that limit goes up from $2.0 million to $2.1 million.
This matters because once your money is in a retirement account, the earnings on it are taxed at 0% instead of 15%. So, the higher the transfer balance cap, the more of your savings that may be eligible to sit in that tax‑free zone.
Age pension and deeming rates
From 1 July, the government is expected to make its regular annual updates to income and asset test thresholds to keep up with the cost of living. These changes may affect how much Age Pension you receive and your eligibility.
Deeming rates are how Centrelink estimates income from your financial assets and were increased on 20 March 2026. Further reviews are possible from 1 July and may impact how much income is deemed from financial assets.
We'll keep you updated if and when any updates are made.
What to consider before 30 June 2026
- Search for lost or unclaimed super. If you've changed jobs, names or addresses over the years, you may have super sitting in another fund. Consolidating into one account could save you paying multiple sets of fees. You can check through your Rest online account or the Rest app.
- Review your transfer balance cap if you're thinking about starting a retirement pension.
- Review your beneficiaries. Milestones, like marriage, separation, or having children, can affect who you want to receive your super if something happens to you.
- Check your insurance cover. If you have insurance through Rest, your needs may have changed since you last reviewed your cover. It's worth making sure it still fits your situation.
Need help understanding what this means for you?
We'd love to help.
Book a call and you’ll connect with one of our friendly Super Specialists at the requested time. Our team is here to answer your questions and provide general information. If you’d like more in-depth advice, they can also schedule an appointment with a Rest Adviser for you.
