Key pension and technical rate changes – Spring 2026
This article provides a high-level summary of changes to key government support measures such as the Age Pension as well as other social security updates relevant to retirement. We also offer a short summary of looming changes to taxation of trusts following the Commonwealth government’s latest proposals.
Age Pension
Age Pension changes
The Age pension income is being increased in line with indexation as follows:
| Household type | Total per fortnight pre-20 September 2026 | Total per fortnight post-20 September 2026 | Change |
| Single | $1,200.90 | $1,237.70 | +$36.80 |
| Couple each | $905.20 | $933.00 | +$27.80 |
| Couple apart due to ill health | $1,200.90 | $1,237.70 | +$36.80 |
| Couple combined | $1,810.40 | $1,866.00 | +55.60 |
Source: Retirement Essentials[1]
Asset test changes
The asset test limits Age Pension entitlements where an individual or couple’s combined assets exceed a set level. These caps are changing from 20 September 2026 as follows:
| Household type | Pre-20 September 2026 | From 20 September 2026 | Change |
| Homeowner (single) | $733,500 | $745,750 | +$12,250 |
| Non-Homeowner (single) | $1,000,500 | $1,012,750 | +$12,250 |
| Homeowner (couple) | $1,102,500 | $1,121,000 | +$18,500 |
| Non-Homeowner (couple) | $1,369,500 | $1,388,000 | +$18,500 |
| Homeowner (couple, illness-separated) | $1,300,000 | $1,324,500 | +$24,500 |
| Non-Homeowner (couple, illness-separated) | $1,567,000 | $1,591,500 | +$24,500 |
Source: Super Guide[2]
Income test
The income test qualifies Age Pension entitlements where an individual or couple’s income exceeds set thresholds. These are changing from 20 September 2026 as follows:
| Household type | Annual income pre-20 September 2026 | Annual income post-20 September 2026 | Change |
| Single | $68,322.80 | $70,236.49 | +$1,913.60 |
| Couple | $104,436.80 | $107,328.00 | +$2,891.20 |
| Couple (illness-separated) | $135,189.60 | $139,016.80 | +$3,827.20 |
Source: Super Guide[3]
The above table can be recast into fortnightly terms as follows:
| Household type | Fortnightly income pre-20 September 2026 | Fortnightly income post-20 September 2026 | Change |
| Single | $2,627.80 | $2,701.40 | +$73.60 |
| Couple | $4,016.80 | $4,128.00 | +$111.20 |
| Couple (illness-separated) | $5,199.60 | $5,346.80 | +$147.20 |
Source: Super Guide[4]
Deeming rate changes
The government is increasing deeming rates, the rate of return you are expected to receive on your financial assets, for the third time in a year from 20 September 2026. This can have implications for a pension entitlement to the extent it is reduced if you are assessed to generate income above the income test caps.
| Asset threshold | Previous rate | New rate | Change |
| First $66,800 (single) First $110,600 (couple) |
1.25% | 1.75% | +0.50% |
| Assets over $66,800 (single) Assets over $110,600 (couple) |
3.25% | 3.75% | +0.50% |
Source: Retirement Essentials[5]
Key superannuation changes
A summary of key superannuation threshold changes effective from 1 July 2026:
| Item | 2025/26 | 2026/27 | Change |
| Concessional contributions cap | $30,000 | $32,500 | +$2,500 |
| Non-concessional contributions cap | $120,000 | $130,000 | +$10,000 |
| Maximum bring-forward contribution | $360,000 | $390,000 | +$30,000 |
| General Transfer Balance Cap | $2.0 million | $2.1 million | +$100,000 |
| Total Super Balance threshold for NCC eligibility | $2.0 million | $2.1 million | +$100,000 |
New bring-forward thresholds for making non-concessional contributions:
| Item | 2025/26 | 2026/27 |
| Full 3-year bring-forward available | Less than $1.76m | Less than $1.84m |
| 2-year bring-forward available | $1.76m to < $1.88m | $1.84m to < $1.97m |
| Annual NCC only | $1.88m to < $2.0m | $1.97m to < $2.1m |
| No NCC permitted | $2.0m or more | $2.1m or more |
Items that do not change
| Item | 2025/26 |
| Super guarantee rate | 12.0% |
| Division 293 threshold | $250,000 |
| Downsizer contribution cap | $300,000 per person |
| Carry-forward concessional contribution eligibility threshold | TSB less than $500,000 |
Eligibility requirements
Concessional contributions
- Concessional contributions include employer superannuation guarantee (SG), salary sacrifice and personal contributions where a tax deduction is claimed
- If you are under age 67 at any time during the financial year, there is no work test requirement to claim a tax deduction for a personal super contribution
- For individuals aged 67-74, a tax deduction can only be claimed on a personal contribution if you were gainfully employed for at least 40 hours in a consecutive 30-day period during the financial year in which the contribution is made
- Lodge a notice of intent to claim a deduction with the super fund and receive an acknowledgement before lodging your tax return for that year or the end of the following year, whichever occurs first
- Have sufficient taxable income to utilise the deduction
- Not exceed the contributions cap ($32,500 for 2026/27)
Non-concessional contributions
- Non-concessional contributions are made with after tax monies. Unlike concessional contributions, they are not subject to tax on the way into the super fund
- Must be under age 75 when the contribution is made. No work test is required
- Must have a total super balance below the threshold ($2.1 million for 2026/27)
- Must still have available cap space NCC cap space (the amount you can still contribute to super as a non-concessional contribution before exceeding your applicable limit)
Budget update – changes to trust taxation regime
As part of the 2026-27 Budget, the Commonwealth government announced a 30% minimum tax on discretionary trusts intended to better align the tax rate on trust income with that paid by workers.
A range of trusts will be excluded including charitable trusts and deceased estates. In response to feedback on its consultation paper released in July the government released draft legislation. These proposals are not yet law and include the following notable components[6]:
- Discretionary trusts in existence on 1 July 2028 will be able to elect to a new tax regime where fixed distributions can be made to pre-nominated beneficiaries without incurring the minimum tax. This effectively allows the discretionary trusts to be preserved but at the cost of opting out of their flexible nature (i.e. becoming quasi-fixed trusts).
- The election is not expected to require a restructure and consequent state and territory stamp duty payments.
- Fixed trusts and other widely held trusts (e.g. managed investment trusts) are meant to be excluded from the minimum tax. A new definition of fixed trust will be introduced that will be broadly defined to ensure a fixed trust will not have any major discretionary elements.
While the proposed legislation offers rollover relief for trusts being restructured, a glaring omission remains regarding state and territory tax consequences. While the election option is an improvement there will be a portion of trusts restructuring as a result of the change that face stamp duty tax consequences as a result[7]. The government could ameliorate these consequences by making such charges tax-deductible as an example or, failing this, find a compromise with State governments that has proved elusive to date[8].
The above proposals remain draft in nature and may be subject to further change. This is a general update, and we encourage engaging with your advisor and other experts to clarify the potential impact on your affairs.
[1] ‘Age Pension and deeming rates increases 20 September 2026’, Retirement Essentials (21 August 2026), Age Pension and deeming rates increases 20 September 2026 (accessed 5 September).
[2] B. Drury, ‘Age Pension assets test rules (from September 2026)’, Superguide (20 August 2026), Age Pension assets test rules (from September 2026), (accessed 2 September).
[3] B. Drury, ‘Age Pension income test rules (from September 2026)’, Super Guide (20 August 2026), Age Pension income test rules (from September 2026), (accessed 2 September).
[4] As above
[5] ‘Age Pension and deeming rates increases 20 September 2026’, Retirement Essentials (21 August 2026), Age Pension and deeming rates increases 20 September 2026, (accessed 4 September).
[6] ‘Minimum tax on discretionary trusts: Exposure draft legislation explainer’, Treasury (3 September 2026), Minimum tax on discretionary trusts – exposure draft legislation – Consult hub, (accessed 6 September 2026).
[7] ‘Trust tax overhaul doesn’t solve stamp duty issue’, Accountants Daily (7 September 2026), Trust tax overhaul doesn’t solve stamp duty issue | Accountants Daily, (accessed 9 September 2026).
[8] T. Crowley, ‘Government offers small businesses a trust tax workaround’, ABC News (3 September 2026), Government offers small businesses a trust tax workaround – ABC News, (accessed 4 September 2026).
