Government changes to super for the new financial year

Wednesday 1 July 2026 marks the start of a new financial year (FY 2026/27) – and is when some Australian Government changes to super take effect. Here’s your guide to those changes and how each one might impact you, depending on your situation.

Payday Super

Payday Super is a new system which means employers will have to make their compulsory Superannuation Guarantee (SG) contribution at the same time as paying salary or wages. Previously, SG had to be paid quarterly as a minimum requirement.

How it might impact you

The longer your money is invested in super, the more time it has to potentially grow. You might also feel that you have more control over your super, with visibility over your SG payments from your employer.

Payday Super will also help to avoid lost or missed super payments.

If you work in the WA public sector, you may have traditionally received your super contributions within 14 days of your pay date. These changes will make super processing times even shorter.

If you work in the private sector, you may have received your super contributions quarterly in the past. The changes will mean that your SG will be paid into your super account each payday.

For more information, read our Payday Super article.

Contribution cap increases

To help Australians have the best chance to build their retirement savings, contribution caps increase from 1 July 2026. The increase is a result of annual indexation, in line with average weekly ordinary time earnings.

The annual concessional cap rises to $32,500 (up from $30,000)
This is the maximum amount of before-tax contributions you can make to your super each year without your contributions being subject to extra tax.

Different rules apply if you hold a West State Super or Gold State Super account, as these are untaxed super funds.

The annual non-concessional cap rises to $130,000 (up from $120,000)
This is the maximum amount of after-tax contributions you can make to your super each year without your contributions being subject to extra tax.

The general transfer balance cap increases to $2.1 million (up from 2 million)
This is the limit on the total amount of super that can be transferred into a retirement account.

How it might impact you
These changes might impact you if you have extra amounts to transfer into your super (for example, from your salary, an inheritance or property sale), or if you are about start a retirement pension.

These cap increases mean that you have the chance to add more to your super over the financial year.

For more information, see the current contribution caps or try our contributions calculator to help you make the most of your super contributions.

Super on paid parental leave

It’s important for parents of young families to have the opportunity to continue to build their retirement savings through their super, including when they take parental leave. The Australian Government has introduced the Paid Parental Leave Superannuation Contribution (PPLSC) for eligible parents.

How it might impact you
If you work in the WA public sector, your employer will pay super on both paid and unpaid parental leave.

Outside of the WA public sector, different employers have different arrangements, so make sure you speak with your employer or HR department to understand your entitlements.

For more information, read our article on the Paid Parental Leave Superannuation Contribution.

Division 296 tax

The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 recently became law. This will lift the low-income super tax offset (LISTO) payment from 1 July 2027 and has introduced a new tax, known as Division 296.

Before the Division 296 tax, earnings on super investments have been taxed at a flat rate of 15%, regardless of the account balance.

From 1 July 2026, this new tax introduces a tiered system for realised earnings on the high-balance portions of super accounts:

• An increase of 15% (effectively 30%) for the portion of an account balance exceeding $3 million, but below $10 million
• An increase of 25% (effectively 40%) for the proportion of an account balance exceeding $10 million

Each super fund will need to report this information, and the Australian Taxation Office will then calculate whether they need to pay Division 296 tax.

How it might impact you
These changes are designed to support a more sustainable and fair super system across Australia, by reducing the tax advantages available to around 80,000 Australians with very high super balances. If you are required to pay the Division 296 tax, you’ll have the option to pay it directly from your super account.

For more information, explore the Australian Superannuation Funds of Australia’s (ASFA’s) guide to Division 296 tax.