Super changes from 1 July 2026 and what they mean for you

28 May 2026

Superannuation rules evolve over time, as the Government updates the system to improve retirement outcomes for Australians. Many of these updates are made to keep pace with inflation through indexation.

Some years bring more updates than others. Whether it’s contribution rules, how your super is taxed or when you can access it, understanding what’s new each year can help you make smarter decisions about your money.

The latest changes to super rules take effect from 1 July 2026. Here’s a summary of what’s changing, and what they could mean for you.

Introduction of Payday Super

From 1 July 2026, all employers in Australia will be required to pay their employees’ Superannuation Guarantee (SG) contributions at the same time as salary or wages. This Government reform is called Payday Super.

Currently, some employers pay super contributions at a different frequency to wages and salary. For many people, this means their super contributions are paid quarterly.

Aligning super contributions with payday is designed to help employees grow their retirement savings faster. Super contributions can be invested sooner, giving more time to benefit from compound growth. It will also reduce the risk of unpaid or delayed super contributions.

Super contributions will be required to reach an employee’s super account within seven business days of their payday, unless an extended timeframe applies (such as for new employees).

The Government estimates that around 8.9 million employees across Australia will benefit from this change¹. Based on the Government’s latest employment figures, that’s about 60 percent of the working population².

If you want to learn more about this change, visit Payday Super on the Australian Taxation Office website.

Changes to Maximum Super Contribution Base

This change applies to everyone, however, it is most relevant for higher income earners.

The Maximum Contribution Base is the maximum of an employee's earnings for which the employer is required to pay Superannuation Guarantee (SG) contributions. Employers are not required to pay SG contributions on earnings above this limit.

As part of the Payday Super reforms, the Maximum Super Contribution Base is changing from a quarterly limit to an annual limit, starting from 1 July 2026.

• For 2026/27, the Maximum Contribution Base (annual) is $270,830.
• Up to 30 June 2026, the Maximum Contribution Base is $62,500 per quarter (2025/26).

For full details, see the Maximum Super Contribution Base on the Australian Taxation Office website.

Increase to annual contribution caps

On 1 July 2026, both the concessional (before tax) and non-concessional (after tax) contributions caps will increase.

1. Concessional contribution cap

   The concessional (before tax) contributions cap will increase from $30,000 (2025/26) to $32,500 (2026/27).

   The cap includes all employer super payments (including Superannuation Guarantee amounts), salary sacrifice payments and personal contributions for which you claim a tax deduction³.

   There is no change to the carry forward rules, where unused amounts under your cap can be carried into the next financial year (where eligible).

2. Non-concessional contribution cap

   The non-concessional (after tax) contributions cap will increase from $120,000 (2025/26) to $130,000 (2026/27).

   Where eligible, the three-year bring forward limit will increase to $390,000, and the two-year bring forward limit will increase to $260,000.

Learn more about both contribution caps, including carry forward rules and bring forward arrangements.

Increase to the Transfer Balance Cap

On 1 July 2026, the general Transfer Balance Cap will increase from $2 million (2025/26) to $2.1 million (2026/27).

The general Transfer Balance Cap is the maximum amount transferable to tax-free retirement income accounts, such as Brighter Super’s Pension account.

Learn more about the Transfer Balance Cap on the Australian Taxation Office website.

New tax for large super balances

From 1 July 2026, tax concessions will be reduced for certain earnings on superannuation balances above $3 million.

This is the new Division 296 tax, also known as Better Targeted Super Concessions, which will apply from the 2026/27 financial year onwards.

From 1 July 2026, the following changes will come into effect:

• Individuals whose Total Super Balance at the end of the financial year exceeds the Large Super Balance Threshold (set at $3 million for 2026/27) will be subject to Division 296 tax of 15% on the proportion of earnings relating to the balance that exceeds the threshold.
• Further, individuals whose Total Super Balance at the end of the financial year exceeds the Very Large Super Balance Threshold (set at $10 million for 2026/27) will be subject to an additional Division 296 tax of 10% on the proportion of earnings relating to the balance that exceeds the threshold.

The $3 million and $10 million thresholds are both indexed to the Consumer Price Index.

After each financial year, the Australian Taxation Office will calculate the tax payable for individuals affected by the new Division 296 tax. Those individuals then have the option to pay the tax either directly from their super account or from their own funds outside super.

This is a similar process to the current Division 293 tax, which some members will have experienced in the past.

The concessional tax rate of 15% remains unchanged for individuals with Total Super Balances of $3 million or less.

For further information visit:

• Division 296 tax on the Australian Taxation Office website.
• Example calculations on the Association of Superannuation Funds of Australia website.

Introduction of Government super contributions on Paid Parental Leave

The Paid Parental Leave Superannuation Contribution scheme that was announced by the Government last year, comes into effect on 1 July 2026.

Eligible parents of children born or adopted from 1 July 2025 will now receive a super contribution equivalent to the current 12% Super Guarantee rate on their Commonwealth Paid Parental Leave.

This contribution will be paid by the Government as a lump sum into an individual’s super account after the end of the financial year in which they received Parental Leave Pay. The Government will start paying these contributions in the 2026/27 financial year.

Paid Parental Leave Superannuation Contributions will be taxed at 15% and will count towards an individual’s concessional contributions cap.

Learn more about Paid Parental Leave Superannuation Contributions on the Australian Taxation Office website.

Increase to Government super co-contribution income thresholds

The Government’s super co-contribution is designed to help low- and middle-income earners grow their super.

If you're eligible and make personal (after-tax) contributions during the financial year, the Government may add a co-contribution of up to $500, depending on your income.

From 1 July 2026, the income thresholds used to calculate eligibility will increase, although the maximum entitlement remains unchanged. 

This incentive is a simple way to boost your super, especially if you’re on a modest income.

For further information:

• Visit our page explaining government super contributions.
• Learn more about the super co-contributions on the Australian Taxation Office website.

We’re here to help

If you would like to discuss how these changes might affect you, our team of superannuation specialists and financial advisers can help you. Find out more about Brighter Super’s advice services and how to book an appointment.

If you already have a financial adviser, they can help you make informed decisions about your super.

Brighter Super also runs live webinars and in-person seminars throughout the year. We cover a wide range of super and retirement topics, helping you to make informed decisions about your financial future. For information and registrations, visit our events page.

To view or update your account at any time, log in to Member Online or download the Brighter Super mobile app.