Prepared by Yvette Goss SSA^®

Manager - Superannuation Services at Lee Green

SMSF Specialist Advisor™

As we approach the commencement of the 2026–27 financial year, there are several significant changes to superannuation coming into effect on 1 July 2026 that may impact your superannuation planning and strategy.

Key Thresholds Comparison

Concessional Contributions – Claiming a tax deduction

If you wish to claim a tax deduction for your personal contributions, you need to:

• Meet the work test if you are 67 to 74 years of age (be gainfully employed for at least 40 hours in a consecutive 30 day period in the financial year that you make the contribution) or meet the criteria for a work test exemption (Total Superannuation Balance (TSB) of less than $300,000 and other strict conditions)
• Send your super fund a notice of intent to claim a tax deduction and receive an acknowledgment notice before the earlier of lodging your tax return or 30 June of the following financial year (or before you commence a pension or withdraw/rollover money from super)

Note: Those aged 75 years or over are unable to make concessional contributions past 28 days after the month of turning 75.

Concessional Contributions – Carry Forward Unused Cap Amounts

You may be able to contribute more than the standard concessional cap using the carry-forward (catch-up) rules.

 When it is available

• Your Total Super Balance is below $500,000 at 30 June of the previous financial year
• You have unused concessional cap amounts from prior years

How it works

• Unused concessional cap amounts can be carried forward for up to 5 financial years
• If you exceed the yearly concessional cap amount, the excess will be automatically applied against your oldest unused cap amount(s) first and so on until they are all used

Non-Concessional Contributions

Non-concessional contributions are personal contributions that are not claimed as a tax deduction (tax free) and can be made by those aged under 75 years of age (or specifically before the 28^th day of the month after the month you turn 75), depending on your Total Superannuation Balance (TSB) on 30 June of the previous financial year. 

If your TSB is over the General Transfer Balance Cap on 30 June, your Non-Concessional Contributions Cap will be nil for the next financial year.

To make a non-concessional contribution in the 2025-26 financial year, your TSB needs to be below $2m on 30 June 2025. For the 2026-27 financial year, your TSB needs to be below $2.1m on 30 June 2026.

As the caps are indexed and your TSB changes each year, eligibility to make a non-concessional contribution can change in the future, so please check with our office if you are unsure.

Non-Concessional Contributions – Bring-Forward Arrangement

The bring-forward rule allows you to exceed the yearly non-concessional contributions cap and bring forward caps from future years over a 3 year period.

 How it works

• Instead of being limited to the yearly cap, you may be able to contribute up to 3 years’ worth in 1 year (subject to eligibility)

These are the amounts that can be contributed depending on your age and Total Superannuation Balance (TSB):

Key things to be aware of

• Once triggered, the bring-forward period is locked in for 3 financial years using the cap in the triggering year
• You cannot exceed your available cap across that period
• Your TSB on the prior 30 June and age must be assessed before triggering the rule and each year before contributions are made
• Care is needed if you are close to the Total Superannuation Balance or age thresholds, as this may remove eligibility to make non-concessional contributions in future years, even if there are amounts not yet used from a bring forward arrangement

Transfer Balance Cap

As well as being used to determine eligibility to make non concessional contributions, the Transfer Balance Cap limits how much of your superannuation can be moved into retirement phase pensions.

If you have previously commenced a retirement phase pension, you will have a personal transfer balance cap and will not receive the full indexation (if any) of the cap.

You can find out your personal transfer balance cap by checking your MyGov account or contacting our office.

A New Tax on Large Superannuation Balances - Division 296 Tax

A new tax on the earnings of superannuation fund member balances that exceed $3 million has been introduced and commences on 1 July 2026.

The first balance date applicable will be member balances on 30 June 2027.

The tax will be levied on individual superannuation fund members, but an election can be made to have the tax paid from their superannuation fund.

The Division 296 tax rates are:

• Super balances that are greater than $3m up to $10m – extra 15 % tax PLUS
• Super balances that are greater than $10m – extra 10% tax

There is special capital gains relief available to ensure that the new tax will only apply to capital gains in superannuation funds made from 1 July 2026.  SMSFs need to opt in to the special relief by the due date of their 2027 Financial Year tax return.

This new measure could impact your future tax outcomes and planning strategies.

If you have concerns about this tax, please consider meeting with your financial adviser to discuss your options and to also consider them in conjunction with your other estate planning matters.

PayDay Super

PayDay Super commences on 1 July 2026 and employers will need to pay their employees’ super contributions on the same day that they pay their salary or wages.

The super contribution must be received by the superannuation fund within 7 business days, so you will see more frequent super contributions being received in your superannuation fund from employers.

There are some extensions to the 7 business day timeframe that will apply to the first super contributions paid for new employees and existing employees that are changing to a new superannuation fund.

Self-Managed Superannuation Fund Trustees should prepare for the changes by ensuring they are registered for SuperStream and any members receiving employer contributions have informed their employer of the Electronic Service Address (ESA).

Related party employer arrangements with SMSF Trustees will continue to receive the limited exemption from using SuperStream for employer contributions, but the PayDay Super rules will still apply to the timeframe for making the contributions.

SMSF Trustees should also check that the super fund’s bank account is able to accept payments via the New Payments Platform (NPP).

For employers, the ATO Small Business Superannuation Clearing House (SBSCH) is closing on 1 July 2026.  If you have been using this service, now is the time to make other arrangements for paying your employees’ superannuation.  Software packages such as Xero can provide a superannuation payment service as part of payroll processing.

This new legislation is a substantial change from the previous quarterly payment rules, so if you have any questions about PayDay Super or SuperStream, please contact our office.

Next Steps

If you would like to discuss how any of these changes apply to you:

• Please contact our office to arrange an appointment.

_{Important Note}

_{This information is general in nature and is not considered financial product advice.  It should be considered alongside:}

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• _{Professional advice specific to your situation}

_{Advice about superannuation from a licensed financial adviser is recommended.}

_{This information is current at the time of publication and further updates may have occurred since that date.  Please contact us for the latest information.}