Insights

July 2026 Superannuation Changes at a Glance

From 1 July 2026, Australia’s superannuation caps are increasing, affecting how much you can contribute to superannuation. This will provide valuable planning opportunities, particularly for higher‑income earners, business owners, and those approaching retirement.

Below is a clear summary of what’s changing and how you may be able to benefit.

Concessional Contributions

From 1 July 2026:

• The concessional (before-tax) contributions cap increases from $30,000 to $32,500 per annum
• This cap includes:
  • Employer Super Guarantee contributions
  • Salary sacrifice contributions
  • Personal deductible contributions

Why this matters: The higher cap allows you to direct more pre-tax income into superannuation, potentially delivering up to an additional $2,500 tax deduction each year. For many clients, this can be an effective way to reduce taxable income while boosting retirement savings.

Non‑Concessional Contributions

From 1 July 2026:

• The non-concessional (after-tax) contributions cap increases from $120,000 to $130,000 per annum
• The bring-forward cap increases from $360,000 to $390,000, subject to eligibility

Why this matters: This creates greater flexibility to move surplus savings into the tax-advantaged superannuation environment, particularly useful for those transitioning into retirement or receiving a large cash inflow.

Transfer Balance Cap (TBC)

• The Transfer Balance Cap increases from $2.0 million to $2.1 million
• This cap limits how much you can transfer from accumulation into a tax-free retirement pension

Who benefits most?

• Individuals commencing a pension for the first time from July 2026 will generally access the full increase
• Existing pension holders may receive a proportional increase, depending on their personal transfer balance history

What Should You Consider Before 30 June 2026?

With these changes approaching, now is the ideal time to review your strategy. Key actions may include:

• Reviewing your current contribution levels
• Considering the optimal timing for non-concessional contributions
• Considering the optimal timing for commencing a retirement pension
• Ensuring contributions remain within the applicable caps

Speak With Your Adviser

The July 2026 superannuation changes present genuine opportunities, but only when applied thoughtfully and correctly to your circumstances.

To understand how these changes may benefit you, speak with your Altitude Adviser, or contact us to arrange an initial discussion before the new financial year.

Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd ABN 95 617 419 959 AFSL 496178

The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.