From 1 July 2026, a number of important changes to Australia’s superannuation rules come into effect. These updates create new opportunities for some people while introducing new taxes and limits for others, particularly those with higher super balances.
Below, we break down the key changes in plain English and explain why getting the right financial planning advice has never been more important.
Higher Contribution Caps
Good news for many Australians: indexation has increased how much you can contribute into super each year.
Concessional contributions
From 1 July 2026, the concessional contribution cap increases to $32,500 per year (up from $30,000). This cap includes:
- Employer Super Guarantee contributions, paid at the current 12% superannuation rate, including insurance paid via super by your employer
- Salary sacrifice contributions
- Personal deductible contributions
For people still working or early retirees with higher taxable incomes, this may provide a valuable opportunity to boost retirement savings tax-effectively.
Non-concessional contributions
The standard non-concessional contribution cap increases to $130,000 per year (up from $120,000).
You may also be able to use the bring-forward rule, allowing up to $390,000 over three years — but eligibility depends on your total super balance on 30 June 2026:
- Under $1.84 million → up to $390,000 (3-year bring forward)
- Between $1.84m and $1.97m → up to $260,000 (2-year)
- Between $1.97m and $2.1m → $130,000 only
- $2.1m or more → no non-concessional contributions allowed
This is an area where personalised superannuation advice is essential, as contributing too much can be costly to unwind.
Retirement Phase Cap: $2.1 Million
The Transfer Balance Cap (TBC), the lifetime limit on how much you can move into a tax-free pension account, increases from $2.0 million to $2.1 million.
This change mostly benefits people who have never started a super pension, or have only partially used their cap before 1 July 2026. If you’ve already used your full cap in the past, you generally won’t receive the full increase.
Timing matters. Starting or adjusting pensions around key dates can permanently affect how much tax-free income you receive in retirement.
Division 296: New Tax on Large Balances
One of the most significant changes is the introduction of Division 296 tax, applying from 1 July 2026.
This affects individuals with super balances above $3 million. An additional tax applies to investment earnings:
- An extra 15% tax on earnings linked to balances between $3m and $10m
- An extra 25% tax on earnings above $10m
This means total tax on some super earnings could reach 30%, or 40% for very large balances. The tax applies to the individual, not the super fund, and generally can’t be offset by deductions or losses.
For SMSF members, asset values and liquidity are especially important under these rules. This change makes strategic planning around structures, withdrawals, asset allocation and estate planning more important than ever.
Why Professional Advice Matters More Than Ever
These changes don’t exist in isolation. Superannuation rules are highly interconnected, and a decision in one area can permanently affect another, sometimes years down the track.
Mistakes can lead to unexpected tax bills, lost opportunities for tax-free retirement income, and an inability to fix errors once key thresholds are crossed.
At AGS Financial Group, we work closely with individuals, families and business owners to ensure contribution strategies are compliant and tax-effective, plan the timing of retirement income streams, navigate complex changes like Division 296, and coordinate financial planning and accounting advice holistically.
Thinking Ahead?
Whether you’re building wealth, approaching retirement, or managing a larger super balance, now is the time to review your strategy before the new rules take effect.
Speak to AGS Financial Group to ensure your super remains aligned with your goals — confidently, compliantly, and tax-effectively.