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)
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)
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)
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)
- Pay super every payday, and ensure the funds reach super funds within 7 business days unless special exceptions apply. (community.ato.gov.au)
- 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)
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.