The new financial year brings several important superannuation changes that may create valuable tax planning opportunities for individuals and business owners.
1. Payday Super Starts
From 1 July 2026, employers will be required to pay superannuation at the same time as employees are paid, replacing the current quarterly payment system.
2. Higher Concessional Contribution Cap
The concessional (before-tax) contribution cap increases from $30,000 to $32,500 per year. This includes employer super contributions, salary sacrifice arrangements and personal deductible contributions.
3. Higher Non-Concessional Contribution Cap
The non-concessional (after-tax) contribution cap increases from $120,000 to $130,000 per year. Eligible individuals may be able to contribute up to $390,000 under the bring-forward rule.
4. Transfer Balance Cap Increases
The general transfer balance cap increases from $2.0 million to $2.1 million, allowing more superannuation to be transferred into the tax-free retirement pension phase.
5. Downsizer Contributions Remain Available
If you are aged 55 or over and sell your family home, you may be able to contribute up to $300,000 per person into super under the downsizer contribution rules, subject to eligibility requirements.
6. Don’t Forget About Catch-Up Super Contributions
If your total superannuation balance was less than $500,000 on 30 June 2026, you may be able to use any unused concessional contribution caps from the previous five financial years.
This can be a valuable tax planning strategy if you have received a bonus, sold an investment, realised a capital gain, or have surplus cash available. Making additional deductible super contributions may reduce your taxable income while increasing your superannuation balance.
Tax Planning Opportunities
The increase in contribution caps may provide opportunities to:
- Reduce taxable income through deductible super contributions
- Utilise unused concessional contribution caps from prior years
- Manage capital gains tax outcomes
- Contribute additional amounts to superannuation within the available caps
- Review contribution strategies before 30 June each year
Employers – Prepare for Payday Super
The introduction of Payday Super will require employers to review their payroll and superannuation payment processes to ensure super contributions are paid at the same time as wages.
If you operate a business with employees, contact PTAS to ensure your payroll systems, cash flow management and superannuation processes are ready for the new requirements and to help avoid potential penalties for non-compliance.
Contact PTAS today to discuss the tax implications of these superannuation changes and whether any tax planning opportunities may be available to you.
Disclaimer: This information is general in nature and is intended for taxation and accounting purposes only. It does not constitute financial product advice or personal financial advice. You should seek appropriate licensed financial advice before making investment or superannuation decisions.