Billy Amiridis
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.
Payday Super Is Now Law: What It Means for You
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.
Contribution Caps Have Gone Up
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.
Concessional (before-tax) contributions
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.
Non-concessional (after-tax) contributions and the bring-forward rule
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:
- Below $1.84 million: full bring-forward of $390,000 over three years
- Between $1.84 million and $1.97 million: reduced bring-forward of $260,000 over two years
- Between $1.97 million and $2.1 million: standard annual cap only, $130,000, no bring-forward
- $2.1 million or above: nil, no further non-concessional contributions allowed
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.
The New $3 Million Super Tax (Division 296)
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:
- It’s assessed on earnings, not on the balance itself, so a fund that hasn’t grown much in a given year may attract little or no extra tax even with a large balance.
- The first assessments relate to the 2026-27 financial year and won’t actually be issued until after that year’s tax return is lodged and processed, so most affected people won’t see a notice until 2027-28.
- Strong investment performance can push a balance across the $3 million line even without making any extra contributions, so it’s not only high income earners who need to keep an eye on this.
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.
Other Changes Worth Knowing About
A couple of smaller but still useful changes came in alongside the headline items:
- Paid Parental Leave super contributions are now paid directly into individual super accounts from 1 July 2026, rather than as a separate government payment. This is aimed at reducing the long-term super gap caused by career breaks for parents.
- The maximum contribution base, which caps how much of your income your employer needs to pay SG on, moved to an annual figure of $270,830 for 2026-27 under the new payday super system, replacing the old quarterly calculation. This mostly affects higher-income employees and the employers paying their super.
What Should You Do Now?
None of these changes require urgent action for most people, but a few checks are worth making before the next quarter rolls around:
- Confirm your employer’s super payments are actually arriving within the new payday super timeframe.
- If you’re salary sacrificing, check your contributions still make sense against the new $32,500 concessional cap.
- If you’re planning a larger after-tax contribution, confirm which bring-forward tier applies to your total super balance before you transfer anything.
- If your balance is tracking toward $3 million, factor Division 296 into your longer-term planning rather than treating it as a future problem.
Here to help
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
Frequently Asked Questions
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.
References
- Australian Taxation Office, Non-concessional contributions cap — https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/non-concessional-contributions-cap
- AustralianSuper, FY27 Superannuation Changes for Employers — https://www.australiansuper.com/employers/employers-articles/2026/06/super-changes
- AustralianSuper, Superannuation Changes – Federal Budget 2026-27 — https://www.australiansuper.com/superannuation/changes-to-superannuation
- Australian Retirement Trust, Superannuation changes for this financial year and beyond — https://www.australianretirementtrust.com.au/learn/superannuation/superannuation-changes
- Morningstar Australia, Key changes to 2026/27 super thresholds — https://www.morningstar.com.au/retirement/key-changes-202627-super-thresholds
- Industry Super Australia, Superannuation Changes – 2026/2027 New Rules — https://www.industrysuper.com/understand-super/super-changes
