Superannuation Changes from 1 July 2026: What You Need to Know
Big Super Changes from 1 July 2026 – What You Need to Know
From 1 July 2026, a number of important changes to Australia’s superannuation rules will come into effect. These updates can create new opportunities for some people, while introducing new taxesand 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 advice has never been more important.
1. Higher Super Contribution Caps – More Room to Grow Your Super
Good news for many Australians: indexation has increased how much you can contribute into super each year.
Concessional (before tax) contributions
From 1 July 2026, the concessional contribution cap increases to:
$32,500per year (up from $30,000)
This cap includes:
Employer Super Guarantee contributions, 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 (after tax) 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.
Your total super balance on 30 June 2026 determines what you can contribute:
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 advice is essential, as contributing too much can be costly to unwind.
2. Retirement Phase Cap Increases to $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 → $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 can receive in retirement.
3. New Tax on Large Super Balances (Division 296)
One of the most significant changes is the introduction of Division 296 tax, applying from 1 July 2026.
Who does this affect?
Individuals with super balances above $3 million.
How does it work?
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
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
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.