Key superannuation changes – Winter 2026
This article highlights upcoming changes to key superannuation rates and thresholds that will take effect from 1 July 2026.
Superannuation contribution caps[1]
The contribution cap on superannuation contributions is increasing from 1 July 2026 as follows.
| Type of cap | FY2026 | FY2027 | Change |
| Before-tax (concessional) cap | $30,000 | $32,500 | +$2,500 |
| After-tax (non-concessional) cap | $120,000 | $130,000 | +$10,000 |
This means you will be able to contribute a further $2,500 a year taxed at the concessional rate of 15% when it enters your super fund.
The cap on non-concessional contributions which are made from after-tax income has also risen a further $10,000. This has implications for bringing forward super contributions as well.
Eligible individuals aged below 75 can also bring forward up to three years of contributions, i.e. $390,000 from 1 July 2026, an increase of $30,000. This will depend on both your age and your total super balance with the three-year maximum requiring a total super balance of below $1.84m on 30 June. By contrast if you had a total super balance above $1.97m then you could only make a maximum current year non-concessional contribution of $130,000.
Transfer Balance Cap
This is the maximum amount of superannuation that can be transferred into the retirement phase. It is designed to gradually adjust to inflation over time with FY27 seeing an increase of $100,000 (or 5%).
| Type of cap | FY2026 | FY2027 | Change |
| General transfer balance cap | $2,000,000 | $2,100,000 | +$100,000 |
Tax changes
The Division 296 tax takes effect from 1 July 2026[2]. This tax targets individuals with a total super balance of above $3 million. It has two tiers of tax rates that are based on how large one’s total super balance is.
Division 296 tax rates and key thresholds
| Tax tier category | Threshold | Tax rate |
| Large super balance | Above $3,000,000 | 15% |
| Very large super balance | Above $10,000,000 | 25% |
For an investor generating investment income of 7% of their total super balance for FY27 we have the following outcomes:
Worked example of Division 296 tax calculation
| Total super balance | Investment income | Amount above threshold | Tax liability calculation | Tax liability |
| $5,000,000 | $350,000 | $2,000,000 @ 15% | (2/5) x $350,000 x 15% | $21,000 |
| $12,000,000 | $840,000 | $7,000,000 @ 15%
$2,000,000 @ 25% |
(7/12) x $840,000 x 15% +
(2/12) x $840,000 x 25% |
$108,500 |
The effective tax rate will vary substantially depending on individual circumstances with the above examples showing effective rates of 6% in the $5m example versus almost 13% for the $12m example.
Importantly the thresholds are indexed to the consumer price index[3] and will grow in:
- $150,000 increments for the lower $3m threshold for large super balances and
- $500,000 increments for the higher $10m threshold for very large super balances.
Payday Super rollout
Prior to 1 July 2026 your employer was only required to pay your superannuation entitlement at least every three months. This changes from 1 July to better align with the timing of wage and salary payments.
Employers will now only have up to 7 working days to contribute to your superannuation fund after the scheduled salary payment. The intent here is to modestly assist in the compounding of your superannuation balance as well as making it difficult for unpaid superannuation contributions to go unnoticed.
Superannuation on Paid Parental Leave
Parents who qualify for the government’s Parental Leave Pay Scheme will see the following benefit
- Scheme length expanding to 130 days (26 weeks), up from 120 days previously, and
- A 12% superannuation contribution will be added to government payments for babies born or adopted from 1 July 2025.
[1] ‘Contribution caps’, Australian Tax Office (24 April 2026), Contributions caps | Australian Taxation Office, (accessed 26 April 2026).
[2] ‘Better targeted superannuation concessions’, Australian Tax Office (24 March 2026), Better targeted superannuation concessions | Australian Taxation Office, (accessed 13 April 2026).
[3] P. Coorey, ‘Labor MPs asked to fund campaign to salvage budget’, Australian Financial Review (2 June 2026),Budget tax changes ads lead to Labor MPs asked to donate their communication allowances to fund the campaign, (accessed 3 June 2026).
