Tax Planning
How the 2026-27 Budget Changes Super Contribution Caps: What It Means for You
Australia’s 2026-27 Budget brings superannuation contribution caps upward—and locks in employer super contributions for paid parental leave. Learn who benefits, when it kicks in, and how to update your planning.
By NomadicTax Research Team • 5-8 min read • June 14, 2026
## Major Super Changes from 1 July 2026
The 2026-27 Budget includes several key updates to the Australian superannuation system: contribution caps are increasing, employer obligations are extending to paid parental leave, and major reforms like Payday Super are kicking in. ([csc.gov.au](https://www.csc.gov.au/news-and-insights/2026/may-13-federal-budget-2026?utm_source=openai))
### 1. Increased Contribution Caps
| Type of contribution | Old cap | New cap (from 1 July 2026) |
|---|---|---|
| **Concessional contributions** | AUD 30,000/year | AUD 32,500/year |
| **Non-concessional contributions** | AUD 120,000/year | AUD 130,000/year |
| **Bring-forward rule** (for eligible under 75s) | AUD 360,000 | AUD 390,000 |
| **Transfer balance cap** | AUD 2 million | AUD 2.1 million |
This gives you more room to contribute, especially if you’re planning large after-tax contributions or utilising the bring-forward strategy. ([csc.gov.au](https://www.csc.gov.au/news-and-insights/2026/may-13-federal-budget-2026?utm_source=openai))
### 2. Super on Paid Parental Leave
If your child is born or adopted on or after **1 July 2025**, and you’re receiving Parental Leave Pay from Services Australia, you’ll now receive superannuation contributions from your employer during that leave—calculated at the Super Guarantee rate (12%). These contributions will include an interest component and will be paid as a lump sum after the end of the relevant financial year. ([csc.gov.au](https://www.csc.gov.au/news-and-insights/2026/may-13-federal-budget-2026?utm_source=openai))
### 3. Payday Super: More Frequent Payments and New Rules
Payday Super reforms start **1 July 2026**, requiring employers to:
- Calculate super on **qualifying earnings** rather than just ordinary time earnings. This expands the base to include labour contractors in some cases. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/PaydaySuper?utm_source=openai))
- Pay super **every payday**, and ensure the funds reach super funds within **7 business days** unless special exceptions apply. ([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001qD2iH/payday-super-starts-1-july-heres-what-employers-need-to-know?utm_source=openai))
- The **Small Business Superannuation Clearing House** (SBSCH) is closing permanently on 1 July 2026. If you use it, download your records and choose another payment method. ([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-to-pay-super/small-business-superannuation-clearing-house?=redirected_sbsch&utm_source=openai))
## Actionable Planning Tips
- Review your super strategy now to take advantage of higher caps before end of financial year. Contribute more if able.
- If expecting to receive paid parental leave, check eligibility and plan finances accordingly. These new super contributions will improve long-term retirement savings.
- Check your payroll systems and cash flow to meet the Payday Super obligations—especially seeing discontinued SBSCH and required reporting upgrades.
- Seek financial advice if you have a high balance in your super (e.g., approaching AUD 3 million) to avoid unintended breaches under new earnings tax rules.
## Example
Sarah is 35 and earns AUD 150,000/year. Under old caps, she contributed AUD 120,000 non-concessional via the bring-forward rule. With new caps, she can bring forward AUD 130,000, allowing more flexibility in planning her super contributions in the next few years.