Superannuation Changes in the 2026-27 Budget
The latest Federal Budget introduced several super-related policy shifts set to start from 1 July 2026 onwards. These include increases to contribution caps, changes for paid parental leave, the introduction of “payday super,” and a new tax on very high balances. (csc.gov.au)
Key Reforms to Know
| Policy | Core Change | Who Is Most Affected |
|---|---|---|
| Increased contribution caps | Concessional cap rises to $32,500, non-concessional cap to $130,000, and bring-forward amount to $390,000. Transfer balance cap rises from $2.0M to $2.1M. | High-income earners seeking large tax-deductible super contributions. (csc.gov.au) |
| Payday super | Employers must pay superannuation at the same time as salary or wages from 1 July 2026. | Regular wage-earners. Ensures contributions are not delayed or lost. (csc.gov.au) |
| Super on paid parental leave | For children born/adopted on or after 1 July 2025, super contributions will apply to Parental Leave Pay (12%) including interest, paid as a lump sum after the financial year ends. | Parents on leave, especially those relying on government-paid parental leave. (csc.gov.au) |
| Tax on very high total super balances (TSB) | Individuals with TSB over $3 million will face additional tax on certain super earnings from 2026-27, with assessments expected in 2027-28. | Ultra-high net worth individuals; impact likely limited in numbers. (csc.gov.au) |
Actionable Tips for Super Savers
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Review your contribution strategy now:
- Maximise concessional contributions before caps increase.
- Plan non-concessional contributions and explore the 3-year bring-forward rule if eligible and appropriate.
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Parental leave: if applicable, document your paid parental leave starting 1 July 2025 and ensure your super fund is aware to credit the super with interest.
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Ensure employer compliance with payday super: employers, payroll staff, and advisers should align systems to satisfy contributions timing. Delays may mean lost earnings.
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For those approaching $3M TSB: consider asset allocation, review taxation on earnings, possibly shift to funds or investments with lower taxable earnings, or examine transition-to-retirement strategies.
Example Scenario
Jane is 35 with super balance of $2.9 million early in 2026. She earns $200,000 salary. She planned significant non-concessional contributions of $120,000. After 1 July, with higher caps, she could contribute up to $130,000. However, being close to TSB ceiling, she might face additional tax on very high super earnings; adjusting investment earnings mix (e.g. focus on capital gains inside super) could reduce exposure.
Conclusion
These superannuation reforms reflect a drive to preserve retirement savings, reduce leakage, and impose equity across individuals with large balances. Whether you’re mid-career, parenting, or retiring, falling in or close to thresholds means early action will pay dividends.