Super payments on paid parental leave

From 1 July 2026, super contributions will now be paid to eligible parents receiving a government-funded Paid Parental Leave (PPL). 

Payday super

Payday Super commenced on 1 July 2026 and will require employers to pay their employees’ super at the same time as their salary and wages. This change is designed to reduce the incidence of unpaid super contributions and enable super to be paid into workers super accounts earlier.

Division 296 levies a higher rate of tax on earnings generated from super balances exceeding $3m

From 1 July 2026, legislation has passed to increase the tax rate on earnings generated from super balances where the total super balance exceeds the large super balance threshold of $3m (2026-27 year).  The new tax will be applied as follows:

• Earnings attributable to super balances above $3m will be levied with an additional 15% tax
• Earnings attributable to super balances exceeding $10m will be levied with an additional 10% tax

Contribution limits are increasing

From 1 July 2026, the concessional contributions cap will increase from $30,000 p.a. to $32,500 p.a.  The non-concessional cap will increase from $120,00 p.a. to $130,000, or $390,000 under the bring forward rules.

Increase in Total Super Balance (TSB) and the Transfer Balance Cap (TBC)

From 1 July 2026, the new cap for the TSB and TBC will increase from $2m to $2.1m.