SUPER CHANGES YOU SHOULD KNOW BEFORE 2026

Appleby
Feb 16
3 min read

Retirement might feel far off or just around the corner but understanding what’s changing in superannuation can help you make smarter decisions — and avoid costly mistakes. And since governments and the ATO never seem to keep their hands off super, here’s a clear, simple overview of the key updates coming over the next few years.

Possible Higher Tax for Very Large Super Balances

The Government has proposed a new tax (Division 296) targeting individuals with very large superannuation balances. It isn’t law yet, but here’s what’s currently on the table:

Up to $3 million: No change — earnings taxed at 15%
$3 million to $10 million: Additional 15% tax (effective 30%)
Above $10 million: Effective tax rate on earnings may rise to 40%

Only a very small number of Australians will be affected. The key message?Don’t rush to withdraw funds based on speculation. Once money leaves super, strict contribution caps can make it difficult — or impossible — to put it back in.

If you think this could apply to you, wait for the final legislation and seek professional advice before taking any action.

Payday Super Begins 1 July 2026

One major confirmed reform is payday super.

Right now, employers only need to pay super quarterly. From 1 July 2026, the rules change:

Super must be paid at the same time as wages
Contributions must reach your super fund within 7 business days
For new employees, the first payment must be made within 20 business days

What this means

For workers:

Your super is deposited faster
Less risk of unpaid or missing super
More time invested = stronger long‑term compounding

For employers:

Now is the time to review payroll systems and speak with your accountant or software provider. This is a major change — being prepared early will avoid compliance issues later.

Contribution Caps Expected to Increase

From 1 July 2026, super contribution limits are expected to rise due to wage indexation:

Concessional cap: expected to increase to $32,500
Non‑concessional cap: expected to rise to $130,000

These increases can create opportunities to:

Boost salary sacrifice
Top up super
Plan larger after‑tax contributions

Final figures will be confirmed in February 2026.

Transfer Balance Cap Increasing

The transfer balance cap (TBC) — the limit on how much you can move into a tax‑free retirement pension — is indexed with inflation.

Based on current CPI trends, it is expected to increase from $2 million to $2.1 million on 1 July 2026.

This mainly benefits people who haven’t yet started a retirement‑phase pension. Those already in pension phase may still receive a partial increase, depending on how much of their cap they’ve used previously.

More Flexibility for Legacy Pensions

Australians with older pension products — such as lifetime, life‑expectancy or market‑linked pensions — now have more flexibility.

Recent rule changes allow:

A five‑year window for eligible members to review or restructure
Opportunities to simplify super arrangements
Potential improvements in flexibility and estate planning

Since legacy pensions are complex, professional SMSF advice is strongly recommended before making any changes.

Better Fund Performance, Transparency and Technology

APRA‑regulated funds will continue to face increasing scrutiny. In 2026, expect:

Further analysis and pressure on underperforming funds
Clearer reporting on fees, investment returns and asset allocation
Improved comparison tools to help members make better choices

Technology is also evolving fast. Many funds are rolling out:

Better online dashboards
Upgraded mobile apps
AI‑driven investment and retirement planning tools

If you haven’t logged into your super account in a while, 2026 is a great time to get familiar with it.

Final thoughts

Superannuation is a long-term investment, and even minor adjustments to the rules can greatly impact your retirement results. By keeping yourself informed, regularly reviewing your strategy, and seeking advice when necessary, you can help ensure your super remains effective for your future.

If you have any questions, please contact us on (07) 3876-6211