- Contribution caps lift (concessional $30,000 → $32,500; non-concessional $120,000 → $130,000).
- Division 296 — the extra tax on balances over $3 million — commences.
- Payday Super begins: employers must pay your super every payday, not quarterly.
- Super is paid on government Paid Parental Leave for the first time.
- The government co-contribution income thresholds rise.
- The Super Guarantee rate stays at 12% — despite what a lot of searches assume.
1. Contribution caps go up
Super contribution caps are indexed to wage growth (AWOTE), and they tick up on 1 July 2026 for the first time since 2024:
| Cap | FY 2025-26 | FY 2026-27 (from 1 July 2026) |
|---|---|---|
| Concessional (before-tax) | $30,000 | $32,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 |
| Non-concessional bring-forward (3 years) | $360,000 | $390,000 |
| Transfer Balance Cap (general) | $1.9M | $2.1M |
| Total Super Balance limit for non-concessional | $2.0M | $2.1M |
If you salary sacrifice up to the concessional cap, you can now put in $2,500 more per year at the concessional 15% tax rate. The full mechanics — including the carry-forward rules and what happens if you exceed a cap — are in our contribution caps guide.
2. Division 296 commences
Division 296 adds an extra 15% tax on realised earnings attributable to balances between $3 million and $10 million, and an extra 25% above $10 million. It starts on 1 July 2026, but the first balance test is 30 June 2027 — so the first assessments land after that. Treasury estimates about 80,000 people are affected in year one; for everyone else it changes nothing.
The version that became law is materially softer than the original 2023 bill: unrealised (paper) gains are not taxed, and both thresholds are now indexed to inflation. Plenty of explainers still describe the old version. The full breakdown, with worked examples, is in our Division 296 guide.
3. Payday Super begins
From 1 July 2026, employers must pay your Super Guarantee at the same time as your wages — with the contribution required to reach your fund within seven business days of each payday — instead of the old quarterly deadline. The bills received Royal Assent on 6 November 2025, so this is settled law.
For members, this is quietly good news: super that lands every fortnight rather than once a quarter spends more time invested and compounding, and underpaid or missing super becomes far easier to spot. Our Payday Super guide explains what to watch for and how to check you're actually being paid.
4. Super on government Paid Parental Leave
For babies born or adopted on or after 1 July 2025, the government now pays a 12% superannuation contribution on top of Parental Leave Pay. The contribution is paid as a lump sum into the parent's fund after the end of the financial year — so the first payments start flowing from 1 July 2026. With PPL also extending to 26 weeks (130 days) from 1 July 2026, this is a meaningful dent in the parental-leave super gap that has long hit women hardest. See our super for women guide.
5. Government co-contribution thresholds rise
If you earn under the lower threshold and make an after-tax contribution, the government chips in up to $500. The income thresholds index up on 1 July 2026 to roughly $46,488 (lower) and $61,488 (upper). It is one of the most-missed free top-ups in the system — details in our low-income earners guide.
The change that isn't happening: the SG rate
What to check before 1 July
- Salary sacrifice arrangements — if you sacrifice to the cap, ask payroll to lift the amount so you use the new $32,500 concessional cap.
- Large after-tax contributions — if you're planning a bring-forward contribution, the limit rises to $390,000 from 1 July; timing it after that date gives you more room.
- High balances — if you're near $3M, the 30 June 2027 first test gives you a full year to take advice; don't rush.
- Check your super is being paid — once Payday Super starts, your contributions should appear every pay cycle; a gap is now an early warning sign.
Related
- Division 296 explained — the $3M super tax, in full
- Payday Super — what it means for your balance
- Super contribution caps — 2025-26 and 2026-27
- Contribution caps usage calculator
Independent superannuation research · about the editor ✓ Fact-checked · updated May 2026
Source: APRA & ATO data