With the first quarter of 2026–27 financial year nearing, several important changes to Australia’s superannuation, tax and retirement systems have now come into effect. Here are some taxation changes to consider that can keep more money in your pocket.
Whether you’re growing your super, planning for retirement or already retired, now is a good time to review your financial position and ensure you’re making the most of the new rules and thresholds.
While many of the updates are the result of annual indexation, they can still create valuable opportunities to increase retirement savings, improve cash flow or reassess your Centrelink eligibility.
Here’s what has changed from 1 July.
Higher super contribution caps
The annual limits for super contributions have increased, giving Australians greater flexibility to build their retirement savings.
If you’re under age 75 and eligible, you may also be able to take advantage of the three-year bring-forward rule, allowing up to $390,000 in non-concessional contributions to be made during the financial year.
If contributing more to super is part of your long-term strategy, now is an ideal time to review how much you can contribute.
Superannuation thresholds have increased
Several key superannuation thresholds have also been indexed.
The Transfer Balance Cap and Total Superannuation Balance threshold have both increased to $2.1 million.
These limits can affect how much you can move into a tax-free retirement pension and whether you’re eligible to make non-concessional contributions. Reviewing your balance against the new thresholds may help identify additional planning opportunities. Please be advised if you are currently holding a pension account, you will have applicable TBC’s
Payday Super has commenced
The introduction of Payday Super marks one of the most significant administrative changes for employees.
Employers are now generally required to pay Superannuation Guarantee contributions with each pay cycle rather than quarterly.
This change is designed to get retirement savings invested sooner while making it easier for employees to monitor whether employer contributions are being paid correctly.
Regularly checking your super account remains a good habit.
Lower personal income tax- taxation changes 2026
The tax rate applying to income between $18,201 and $45,000 has now reduced from 16% to 15%.
Although the tax saving will be modest for most people, it may provide a small boost to take-home pay over the course of the year.
For Australians who are working while receiving the Age Pension, the lower tax rate may also slightly reduce the tax payable on their taxable income.
Division 296 remains on the radar
Australians with larger super balances should continue watching developments surrounding the proposed Division 296 tax.
The proposal would apply additional tax to earnings relating to super balances above $3 million.
While the measure has attracted significant attention, it remains important to stay informed as the legislation progresses and to understand how any future changes may affect your retirement strategy.
Federal Budget proposals still awaiting legislation- Taxation changes to come
Several retirement and tax measures announced in the 2026 Federal Budget remain proposals and have not yet become law.
These include:
finalised proposed changes to Capital Gains Tax from 1 July 2027
proposed restrictions on negative gearing for residential property
a proposed 30% minimum tax for discretionary trusts from 1 July 2028, with testamentary trusts established for genuine inheritance purposes expected to remain exempt
a proposed $1,000 instant tax deduction for eligible work-related expenses
the proposed Working Australians Tax Offset (WATO) of up to $250 per year from 1 July 2027.
As these measures progress through Parliament, it will be important to understand how any final legislation may affect your financial plans.
Age Pension thresholds and deeming rates have increased
Annual indexation has also increased the Age Pension income and asset thresholds.
For some Australians, these updated limits may result in higher fortnightly Age Pension payments, while others who were previously ineligible may now qualify for support.
Recipients will also need to consider deeming rate changes as any deemed investments held will now increase from the 20th of September 2026 to 1.75% for below $66,800 for singles and $110,600 for couples while any assets over these amounts will be deemed to earn 3.75%, meaning Centrelink income assessment of these investments may lead to a change in payment if income tested.
Start the new financial year with confidence
The beginning of a new financial year is an excellent opportunity to revisit your retirement strategy and understand the taxation changes in the 2026-2027 financial year and beyond.
With higher contribution caps, updated super thresholds, tax changes and revised Age Pension limits now in effect, even small adjustments can have a meaningful impact over time.
Taking the time to review your super, retirement income strategy and Centrelink position now can help ensure you’re making the most of the opportunities available throughout the 2026–27 financial year.
Final Thoughts
If you feel you need to have a discussion or assistance with your superannuation, taxation planning, investment planning or retirement planning needs , please reach out to our office now located at Suite 203, 39-47 Lasso Road Gregory Hills NSW 2557 at admin@rpwealthmanagement.com.au or call (02)9188 1547.
The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.
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