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Managing Director / Co-Founder / Financial Adviser
If you haven’t looked closely at your super since the new financial year started, now’s a good time. A handful of significant changes landed on 1 July 2026, from how often your employer pays your super, through to how much you can contribute and a new tax that applies once a balance crosses $3 million. None of these changes need to be complicated, but a few are easy to miss if nobody points them out. Here’s what’s actually different this year and what’s worth checking in your own fund.
For most of super’s history, employers only had to pay your Super Guarantee (SG) contributions quarterly. As of 1 July 2026, that’s changed. Employers now need to pay your super at the same time as your wages, generally within seven business days of each payday. This is what’s being called “payday super”, and it’s now a legal requirement rather than a best-practice suggestion.
For employees, the upside is straightforward. Your super starts earning returns sooner instead of sitting with your employer for up to three months at a time, which adds up to a small but genuine compounding benefit over a working life. It also makes it far easier to spot a problem. The ATO now has real-time visibility of super payments, so if your employer falls behind, it shows up much faster than it used to under the old quarterly system.
It’s worth taking two minutes to check your last few payslips against your super fund’s transaction history to confirm contributions are actually landing on schedule. If they’re not, that’s worth raising with your employer or getting advice on.
Both major contribution caps increased this financial year, which opens up more room for people who are in a position to top up their super.
The concessional cap, which covers employer SG contributions and any salary sacrifice you make, has risen from $30,000 to $32,500 for 2026-27. These contributions are taxed at 15% inside your super fund, generally well below most people’s marginal tax rate, which is what makes salary sacrificing attractive for many.
If your total super balance was under $500,000 at 30 June last year, you may also be able to use unused concessional cap space from previous financial years, on top of this year’s $32,500. Unused amounts carry forward for five years before they expire, so it’s worth checking your available carry-forward balance in ATO online services before assuming your cap is just $32,500 for the year.
The non-concessional cap has increased from $120,000 to $130,000. If you’re eligible to use the bring-forward rule, which lets you pull forward up to three years of caps into a single contribution, the maximum has risen to $390,000. How much you can actually bring forward now depends on your total super balance at 30 June the previous year:
That $2.1 million figure lines up with the general transfer balance cap, which also increased this year (more on that below). If you’re weighing up a large after-tax contribution, whether from savings, an inheritance, or the sale of an asset, this is one to get right before you make the transfer, since exceeding your cap can trigger extra tax.
Division 296 is now law and applies from the 2026-27 financial year onward. In plain terms, it adds an extra 15% tax on the portion of investment earnings attributable to a total super balance above $3 million. If your balance is above $10 million, there’s a further 10% on the portion above that mark, on top of the standard tax already applied inside super.
A few practical points worth knowing:
If your balance is approaching $3 million, or you expect it to get there over the next few years through growth alone, it’s worth getting advice on how this affects your broader retirement and estate planning, rather than waiting for the first assessment to land.
A couple of smaller but still useful changes came in alongside the headline items:
None of these changes require urgent action for most people, but a few checks are worth making before the next quarter rolls around:
At 360 Financial Strategists, we are here to help. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
Book a consultation with our team today
What is payday super and when did it start? Payday super is the requirement for employers to pay Super Guarantee contributions at the same time as wages, generally within seven business days of each payday. It became law on 1 July 2026, replacing the previous quarterly payment system.
How much can I contribute to super before tax in 2026-27? The concessional (before-tax) contributions cap for 2026-27 is $32,500. This includes employer SG contributions and any salary sacrifice you make. You may also have access to unused cap amounts from the previous five years if your total super balance was under $500,000 at 30 June 2026.
What is the Division 296 super tax? Division 296 is a new tax that applies an extra 15% on investment earnings linked to the portion of a total super balance above $3 million, and a further 10% on the portion above $10 million. It applies from the 2026-27 financial year, with the first assessments expected in 2027-28.
Has the Super Guarantee rate changed this year? No. The SG rate has been 12% since 1 July 2025, which was the final step in a legislated series of increases. It hasn’t changed for 2026-27.
Do I need to do anything differently with my super fund because of these changes? Not necessarily. The changes mostly affect how much you can contribute and how often your employer pays, rather than requiring you to switch funds. That said, if your balance is approaching $3 million or you’re planning a large contribution, it’s worth getting advice specific to your situation before acting.
Managing Director / Co-Founder / Financial Adviser
1. Set Clear Financial Goals
2. Create a Realistic Household Budget
3. Build an Emergency Fund
4. Reduce Debt Strategically
5. Organise Your Financial Records
6. Review Your Insurance Cover
7. Check Your Superannuation and Estate Planning
8. Review Your Home Loan and Other Financial Commitments
9. Set SMART Financial Goals
10. Work with a Financial Professional
Just as many Australians make personal resolutions at the start of the year, the beginning of a new financial year is an ideal time to assess your financial wellbeing.
Reviewing your income, expenses, savings, investments and financial goals can help identify opportunities to improve your financial position and stay on track for the year ahead.
Even small adjustments today can have a meaningful impact on your long-term financial success.
Every financial plan starts with knowing what you want to achieve.
Your goals might include:
Clear goals provide direction and make it easier to prioritise your spending throughout the year.
A well-planned budget is one of the most effective financial tools available.
Tracking your income and expenses helps you:
Remember, a budget should be flexible enough to adapt as your circumstances change.
Unexpected expenses can happen at any time.
Having an emergency fund provides financial security and reduces the need to rely on credit cards or personal loans when life’s surprises occur.
Aim to build savings that can cover several months of essential living expenses over time.
Managing debt effectively is one of the fastest ways to improve your financial health.
Start by reviewing:
Paying down high-interest debt first can reduce interest costs and free up cash for future financial goals.
Good record keeping makes tax time significantly less stressful.
According to the Australian Taxation Office (ATO), many financial records should be retained for at least five years.
Consider organising:
Digital storage solutions can make ongoing record management much easier.
Your insurance needs change as your life evolves.
Take time to review:
Ensuring your cover remains appropriate can provide valuable financial protection for you and your family.
Superannuation is one of your most valuable long-term assets.
Now is a good time to review:
It’s also worth reviewing your Will and estate planning documents to ensure they still reflect your current circumstances.
Interest rates and lending products change regularly.
Reviewing your mortgage could help you:
It’s also worth reviewing other ongoing financial commitments to ensure you’re still receiving value for money.
Financial goals are far more likely to succeed when they’re SMART.
Make sure your goals are:
Breaking larger goals into smaller milestones can make them feel more achievable and help maintain motivation throughout the year.
You don’t have to manage your finances alone.
An accountant or financial adviser can help you:
Professional advice can provide clarity and confidence when making important financial decisions.
Financial success doesn’t happen overnight, but consistent habits can make a significant difference over time.
By setting clear goals, reviewing your finances regularly, and making informed decisions throughout the year, you’ll be better positioned to achieve greater financial security and long-term wealth.
The new financial year offers a fresh opportunity to build healthy financial habits that support your future.
At 360 Financial Strategists, we help Australians navigate interest rate changes with confidence. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
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