From 1 July 2026, several superannuation settings shift at the same time – affecting retirement phase caps, contribution planning, SMSFs and employers. Here are the main changes:
Contribution caps and deductibility (what to be ready for)
From 1 July 2026, the concessional contributions cap is to increase to $32,500 and the non-concessional cap to $130,000, with corresponding bring forward changes. For deductibility, the rules remain crucial: if you intend to claim a tax deduction for personal super contributions, you must provide your fund with a valid notice of intent and receive an acknowledgement; deductible personal contributions count as concessional contributions.
Transfer Balance Cap (TBC) increases – with flow on impacts
It has been confirmed that the indexation of the general Transfer Balance Cap on 1 July 2026 is increasing from $2.0 million to $2.1 million. Importantly, this indexation has flow through consequences for Total Super Balance (TSB) thresholds, which influence multiple contribution and eligibility rules.
Super on government Paid Parental Leave (with payments starting July 2026)
If you receive Parental Leave Pay for a child born or adopted from 1 July 2025, the ATO will pay a Paid Parental Leave Superannuation Contribution (PPLSC) into your super fund after the end of the financial year, with payments starting from July 2026. This contribution is calculated using the Superannuation Guarantee (SG) rate and is paid as a lump sum.
Payday Super (from 1 July 2026): a big shift for employers
From 1 July 2026, employers will be required to pay SG on payday, with contributions received by the employee’s fund within 7 business days (with limited exceptions). This is a major change to how super is calculated, paid and reported under Payday Super.
Division 296 / “better targeted superannuation concessions” (from 1 July 2026)
This measure is now law and will reduce tax concessions on earnings for individuals whose Total Super Balance exceeds $3 million from 1 July 2026. There is now a second (very large) threshold and both thresholds will be indexed in line with CPI.
This article was first published in the Winter 2026 issue of HLB Mann Judd Perth’s Client Alert.
Peter Speechley (ASIC No. 246156) and HLB Wealth Pty Ltd (ASIC No. 428645) are Authorised Representatives of Paragem Pty Ltd (“Paragem”), ABN 16 108 571 875, AFSL No. 297276.
Disclaimer: The information contained in this article has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. Before you make any decision regarding any information, strategies or products mentioned in this article, you should consult your financial adviser to consider whether that is appropriate having regard to your personal objectives, financial situation and needs. Please note that any audit, taxation and accounting services are provided by HLB Mann Judd and are not within the authority of Paragem’s AFSL No. 297276.