From 1 July 2026, a series of superannuation changes will make contribution timing, balance thresholds and planning decisions more important than they have been in recent years.
Increases to contribution caps, higher balance thresholds, the introduction of payday super and changes to contribution timing will affect how much you can contribute, when those contributions are counted and how retirement‑phase decisions interact with your overall strategy.
For executives and professionals, these changes matter. Higher incomes, variable bonuses, contract work, job changes and earlier retirement planning mean there is often less room for error and more value in getting the sequencing right.
In this article, we outline what is changing from 1 July 2026 and why reviewing your superannuation strategy ahead of the new financial year may help avoid unintended tax outcomes and create opportunities under the new rules.
Super Contribution Caps Are Set to Increase
From 1 July 2026, the key super contribution limits are set to increase, allowing higher contributions under both the tax‑effective concessional and non‑concessional caps¹. These changes may allow you to reduce personal income tax through deductible personal contributions and increase the amount held within the concessionally taxed superannuation environment, which may be taxed at a lower rate than your personal income.
How Contribution Caps Will Change
| Super measure | 2025–26 | 2026–27 |
| Concessional contributions cap | $30,000 | $32,500 |
| Non‑concessional contributions cap | $120,000 | $130,000 |
Higher caps mean more room to build super, but they also create new planning considerations, particularly when combined with changes to contribution timing.
Carry‑Forward Concessional Contributions Still Matter
While higher annual caps are helpful, many people forget that unused concessional caps from previous years may still be available.
If your Total Super Balance (TSB) at the most recent 30 June year, is under $500,000, you may be eligible to use unused concessional contribution caps from the previous five financial years.
With the concessional cap increasing to $32,500, the maximum five‑year carry‑forward amount will also increase.
Carry‑Forward Concessional Contribution Limits
| Measure | 2025–26 | 2026–27 |
| Maximum five-year carry-forward | $137,500 | $142,500 |
| Carry-forward plus current year cap | $167,500 | $175,000 |
30 June 2026 Action Unused concessional contributions from the 2020-2021 financial year will expire if not used by 30 June 2026. If you have the capacity to contribute additional funds to superannuation, this is a timely reminder to review whether a catch‑up contribution is available and makes sense before year end.
Non‑Concessional Contributions and Total Super Balance
The ability to make after-tax, otherwise known as non‑concessional contributions, are governed by your TSB at 30 June of the previous financial year. Importantly, eligibility is assessed based on your balance at that date, not your balance at the time you make the contribution.
This balance determines whether you can contribute at all, and whether you can trigger the bring‑forward rule. Here is how the thresholds are shifting for 2026–27.
Bring‑Forward Rules and TSB Thresholds
| Maximum non‑concessional contribution | 2025–26 Total Super Balance Test | 2026–27 Total Super Balance Test |
| Nil | $2.0m or more | $2.1m or more |
| Standard annual cap | $1.88m to under $2.0m ($120,000) |
$1.97m to under $2.1m ($130,000) |
| Bring-forward over 2 years | $1.76m to under $1.88m ($240,000) |
$1.84m to under $1.97m ($260,000) |
| Bring-forward over 3 years | Less than $1.76m ($360,000) |
Less than $1.84m ($390,000) |
1 July 2026 Action If you’ve previously exceeded the total superannuation balance amount, and your super balance either drops, or maintains its balance, you may again become eligible to make non-concessional contributions to superannuation, given the increased tests which apply from 1 July 2026.
Why Timing Can Be Just as Important as Amounts
In the financial years where caps and thresholds increase, well thought through, and careful planning can create opportunities to maximise funds held in the concessionally taxed superannuation environment.
For example, someone in their early 60s with a super balance around $1.7 million may choose to contribute up to $120,000 in 2025–26 without triggering the bring‑forward rule. If their balance remains under $1.84 million on 30 June 2026, they could then contribute up to $390,000 in the following financial year.
The key point is that rushing to use the bring‑forward rule can sometimes reduce flexibility rather than enhance it. The relative benefit of contributing smaller amounts earlier versus larger amounts later needs to be assessed to determine the most effective strategy for your circumstances.
Transfer Balance Cap and Transition To Retirement Timing
This is where retirement timing and super rules intersect in ways that are easy to overlook.
The general Transfer Balance Cap (TBC) is increasing from $2.0 million to $2.1 million². This cap limits how much you can hold in retirement‑phase pensions where earnings are tax-free. Each individual has their own personal TBC, with increases applied proportionally based on the unused portion of their cap at the time of indexation.
The timing of when a credit is triggered in your Transfer Balance Account matters just as much as the cap itself.
Commencing a pension from your accumulated superannuation benefits, or retaining any transition to retirement pensions on your 65th birthday, will create a record against your personal TBC.
If you are currently drawing funds via a transition to retirement pension and reach age 65 before the end of the financial year, careful consideration needs to be taken to determine whether there is a greater advantage in transferring your benefits back to the accumulation phase, and commencing a new pension after 1 July 2026.
A Note on Division 296 and Large Super Balances
For executives with very large super balances, there is a significant change which comes into effect on 1 July 2026.
Division 296 is a new tax measure applying to individuals with total super balances above $3 million and $10 million³. In broad terms, it introduces an additional tax of 15% to 25% (result in an effective rate of 30% to 40%) on earnings attributable to the portion of a super balance above that threshold.
For individuals with large and growing super balances, the size and timing of balances will matter more than ever.
There are specific planning details to be considered before 30 June 2026 which may reduce future tax payable and help manage the impact of this legislative change. For some with balances above these thresholds, retaining funds within superannuation will result in a lower tax and overall, a better outcome compared to others who will be better off withdrawing funds from the superannuation environment.
The long term planning implications of the additional tax under division 296 are that advice is required those who don’t currently have $3M in superannuation, but might be close to this amount, or might be close or exceed this amount when considering their spouse’s superannuation balances. While division 296 is a test for a single individual person, in the event you or your spouse passing away, with superannuation benefits passing to the survivor, you may quickly find you exceed the $3M threshold.
Although Division 296 does not change contribution caps or eligibility rules directly, it reinforces the importance of actively monitoring total super balances and considering how super fits alongside other ways to own investments, including your personal name, your spouse’s name, in a family trust, or within a company.
For high‑income households, this is less about a single rule change and more about ensuring super remains part of a deliberate, well‑structured wealth strategy.
Payday Super Changes Contribution Timing
From 1 July 2026, payday super will commence⁴. Employers will be required to pay Superannuation Guarantee contributions at the same time as salary and wages, with contributions required to reach the employee’s super fund within seven days of payday. This replaces the current quarterly payment obligation. Charges apply to employers if this does not occur, with extensions to this time frame applying for new employees and those who change superannuation funds. The current rules mean employer superannuation contributions have an obligation to be paid at the end of each quarter.
This change allows employees to receive superannuation contributions in their super funds earlier but also introduces a new issue.
Super contributions are counted against your caps on the date they are received by the fund, not when they are earned or paid from your employer’s bank account.
Given the change in the frequency employers must adhere to, this means the final quarterly contribution for the 2025–26 financial year (which is due on the 28th of July) may be received in your super fund in the 2026-27 financial year. This is the same financial year under which the new Payday super regulations apply. For many high‑income earners, or those with multiple employers, this increases the risk of exceeding the concessional cap requiring careful management and advice to help assess and address the potential impact based on individual circumstances.
Maximum Super Contribution Base Increase
Another important change is the increase in the maximum super contribution base to $270,830 per annum. This will now be measured annually rather than quarterly.
In practical terms, this means employers are required to pay at least the 12% superannuation guarantee contribution on earnings from 1 July each financial year, until the annual cap is reached.
As a business owner, this practically means:
- Your superannuation contribution liability for employees will be front loaded in the financial year, which will impact your cashflow compared to any financial year prior to 1 July 2026.
- If a high earning employee commences employment during the financial year, you may still need to pay superannuation contributions to the maximum super contribution base.
As a high income earning (i.e. earning more than $270,830 including any cash bonus), this practically means:
- You will receive a higher level of contributions earlier in the financial year. After you have reached contributions on the maximum contributions base, your contributions for the remainder of the financial year would be nil (unless your employer has an alternative superannuation agreement in place)
- If you change roles through the year, you may exceed your concessional contributions cap of $32,500. This results in additional ‘top up’ tax, and has implications for your non-concessional contributions cap
For employees, a combination of the Payday super changes and changes to the maximum super contribution base, may result in excessive concessional contributions, even in the event you do not change employers during the year.
- Employers may end up funding higher super contributions than previously budgeted for senior or specialist roles
Bringing It All Together
Individually, each of these changes is manageable. Combined, they reinforce a clear message. Taken together, Superannuation in 2026–27 is all about timing, sequencing and balance management.
Higher contribution caps create opportunity, but only if eligibility is preserved. Changes to Total Super Balance thresholds, bring‑forward rules and carry‑forward provisions mean the order and timing of contributions can materially affect outcomes. Payday Super improves visibility and cash flow into super, but also increases the risk of cap overlap, particularly for high‑income earners or those with multiple employers. Transfer Balance Cap increases provide additional flexibility, but only when pension commencements and credits are triggered deliberately.
For executives and professionals, where income, bonuses and career paths rarely follow a straight line, a proactive reviewing your super strategy can help avoid unintended tax outcomes and assist with navigating the opportunities created by the new rules.
A proactive conversation can help avoid missed opportunities later. For a confidential discussion of your super strategy, contact James Marshall for a 20-minute, no-obligation discussion. You can call James at +61 (0) 7 3007 2080 or email contact@executivestrategies.com.au.
To learn more about James, visit this link.
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Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This advice is general and does not take into account your objectives, financial situation, or needs. You should not act on it without first obtaining professional financial advice specific to your circumstances.
*Please note: For financial advice and services relating to this matter that are not offered under the Fortnum Private Wealth AFSL, in accordance with our collaborative advice model, when required, such matters are referred to appropriately qualified professionals.
