You can put more into super
The two headline changes are increases to the contribution caps; the limits on how much you can add to super each year.
The concessional cap (before-tax contributions, including your employer's compulsory payments and any salary sacrifice) has risen to $32,500 a year, up from $30,000. These contributions are generally taxed at 15% inside super rather than at your marginal tax rate, which is why they're such a useful tool in the final working years when your income and your tax bill is often at its highest.
The non-concessional cap (after-tax contributions, where you're adding money you've already paid tax on) has increased to $130,000 a year, up from $120,000.
For pre-retirees, this is the part worth paying attention to. The years right before retirement are often when people have the most capacity to boost their super, the mortgage might be gone, the kids are off the payroll, and you may have proceeds from downsizing or an inheritance sitting in the bank. Larger caps simply give you more room to move that money into a tax-effective environment before you retire.
Two related rules make this even more flexible:
If you haven't used your full concessional cap in recent years, the carry-forward rule may let you use those unused amounts now (provided your total super balance was under $500,000 at the previous 30 June). And the bring-forward rule can allow you to contribute up to three years of non-concessional contributions at once - now up to $390,000 in a single year, if you're eligible. Both come with conditions, so they're worth checking before you act.
More can go into the tax-free retirement pension
When you retire and move your super into a pension (an account-based pension, sometimes called a retirement phase account), there's a limit on how much you can transfer in. Earnings on money inside that pension are generally tax-free, which is a significant benefit.
From 1 July, that transfer balance cap has risen to $2.1 million, up from $2 million.
If your balance is approaching this level, the timing of when you start your pension can matter. Starting at the right moment and being aware of your personal cap, which can differ from the general figure, this can affect how much of your super enjoys tax-free earnings for the rest of your retirement. This is an area where a bit of planning goes a long way.
The new tax on balances above $3 million
This is the change that's generated the most headlines, so it's worth explaining calmly and clearly.
From 1 July 2026, an additional 15% tax applies to investment earnings on the portion of a super balance above $3 million. The key word is portion; the extra tax only applies to earnings attributable to the amount over the $3 million threshold, not your whole balance.
To put it simply: if your super is comfortably under $3 million, this change doesn't affect you at all. If you're above it, only the slice above the threshold is caught, and the ordinary rules still apply to everything below it.
For the relatively small number of people this touches, it's worth a proper conversation rather than a rushed reaction. There can be sensible ways to think about your overall structure, but the right answer depends entirely on your individual circumstances - so this is firmly a "get advice before doing anything" situation.
A change if you're still working: payday super
If you're still in the workforce, you'll notice a shift in how your employer pays your super. From 1 July, super contributions must be paid at the same time as your salary or wages. So rather than landing quarterly, they'll now arrive with each pay run, whether that's weekly, fortnightly or monthly.
For most people this is a quiet positive. Your super gets invested sooner, it's easier to see that the right amount is going in, and there's less chance of contributions falling behind. The compulsory Super Guarantee rate remains at 12%.
What this means for you
Step back from the detail and the overall picture is encouraging. Most of these changes are opportunities rather than threats. The bigger caps make the run-up to retirement a genuinely powerful window to build your super in a tax-effective way. The higher transfer balance cap means more of your money can sit in the tax-free retirement phase. And payday super simply gets your money working for you a little sooner.
The one area that calls for careful thought is a balance near or above the $3 million mark, or near the $2.1 million transfer balance cap, but even there, the message is to plan, not to panic.
If it's been a while since you looked at your contribution strategy, this financial year is a good moment to do it. A few questions worth asking yourself: Am I making the most of the higher caps before I retire? Do I have unused concessional cap I could carry forward? Is my balance close to any of these new thresholds? If any of those apply to you, it's worth a conversation.
If you'd like to review how these changes fit your own situation, I'm always happy to talk it through; whether you're here in Brisbane or joining by phone or video.
General advice warning: This article contains general information only and does not take into account your personal objectives, financial situation or needs. Before acting on any information in this article, you should consider its appropriateness to your circumstances and seek personal financial advice. Superannuation rules and thresholds are subject to change, and eligibility for the strategies mentioned depends on your individual circumstances.