What’s new in super this financial year?

Major superannuation changes came into effect on 1 July 2026 that affect how often your super is paid and how much money you can contribute.

Here’s a summary of what has changed, and how these changes may affect you.

Your super is now paid when you’re paid

Payday super came into effect on 1 July 2026. This means your employer must now ensure your 12% Superannuation Guarantee (SG) contribution reaches your super fund account within seven business days after each payday.

Because of this, your super should start appearing in your super account weekly, fortnightly or monthly, depending on how often you’re paid.

The benefits of Payday super are significant. Your regular SG contributions will start being invested sooner, your balance will compound earlier, and now it will be far easier to spot if your super hasn’t been paid on time and correctly.

Higher contribution limits now apply

Concessional (before tax) contributions

The concessional (before-tax) contributions cap for the 2026-27 financial year, on which all contributions are generally taxed at 15%*, has been increased from $30,000 to $32,500.

This cap includes your employer’s SG contributions, your own salary sacrifice contributions if you make them, and any after-tax contributions for which you later claim a tax deduction.

The higher annual concessional cap may give you an opportunity to contribute more into your super and reduce the amount of tax you pay on your regular income, while boosting your long term savings.

Carry-forward concessional contributions

If your total super balance is under $500,000, the Australian Taxation Office allows you to use up any unused concessional cap amounts from the previous five financial years and add them to the current year’s concessional contributions.

These are known as carry-forward, or catch-up contributions.

This can be especially helpful if your income increases and you have extra money to put into your super, if you’ve received a large sum of money, or if you’ve spent time out of the workforce and you want to put some extra money into your super to catch up.

The table below shows the concessional contribution caps for the last five financial years. Available carry-forward concessional contributions are recorded by the Australian Taxation Office and automatically deducted from the balance of unused contributions in the oldest financial year.

As an example, if you didn’t have any super contributions added into your account in the 2021-22 financial year, you could potentially add that year’s total cap amount of $27,500 to this year’s concessional cap of $32,500 and have a total of $60,000 contributed into your super.

You could also add in unused concessional contribution amounts from more recent financial years to make an even higher concessional contribution.

Carry-forward concessional contributions available from 1 July 2026

Financial year	Annual concessional cap	Expiry date
2021–22	$27,500	30 June 2027
2022–23	$27,500	30 June 2028
2023–24	$27,500	30 June 2029
2024–25	$30,000	30 June 2030
2025–26	$30,000	30 June 2031

^{Source: Australian Taxation Office}

You can find out if you have any available catch-up contributions by logging into ATO online services via myGov.

Non concessional (after tax) contributions

At the same time, the non concessional (after-tax) contributions cap for the 2026-27 financial year has been lifted from $120,000 to $130,000 per year. These contributions come from your after tax money and are a way to grow your super without claiming a tax deduction.

This increase may give you more flexibility to add extra savings into super, especially if you’re planning ahead for retirement or have received a lump sum.

Three year bring forward rule now updated

If you’re under 75, you can continue using what’s known as the three-year bring forward rule to make up to three financial years of after-tax contributions at once.

Under the increased caps, you may be able to contribute up to $390,000 this financial year, reflecting the new annual cap of $130,000 per financial year. Using the three-year rule may enable you to make a large one off contribution if you want to rapidly increase your retirement savings.

New total super balance thresholds now apply

Your ability to make non concessional contributions or use the three-year bring forward rule depends on your total super balance (TSB) as at 30 June of the previous financial year (for example, at the end of the 2025-26 financial year).

You can view your TSB by logging into ATO online services via myGov.

From 1 July 2026, the transfer balance cap was increased from $2 million to $2.1 million.  The thresholds now work like this:

• If your TSB on 30 June 2026 was less than $1.84 million you can contribute three-times the $130,000 annual non-concessional contributions cap over three years ($390,000).
• If your TSB on 30 June 2026 was $1.84 million or above but less than $1.97 million you can contribute two-times the $130,000 annual cap over two years ($260,000).
• If your TSB on 30 June 2026 was $1.97 million or above you can't bring forward any amount, but you can make a current year contribution of up to $130,000.
• If your TSB on 30 June 2026 was $2.1 million or more you are unable to make further non concessional contributions.

New tax rules for large super balances

From 1 July 2026, a new tax called Division 296 applies if your TSB is above certain “large super balance” thresholds.

• If your TSB is over $3 million, as well as the standard 15% tax already applied to super investment earnings, you will need to pay an extra 15% tax on the proportion of super earnings that relates to your super balance above $3 million (a total of 30%). The $3 million threshold is indexed to the Consumer Price Index in $150,000 increments, maintaining alignment with movements in the transfer balance cap.
• If your TSB is over $10 million, you will pay an additional 10% tax on earnings linked to the portion of your balance above $10 million. The $10 million threshold is indexed to the Consumer Price Index in $500,000 increments, maintaining alignment with movements in the transfer balance cap.
• When added to the standard 15% tax on super earnings and the extra 15% tax on earnings for balances between $3 million and $10 million, the additional 10% tax rate on $10 million-plus balances brings the maximum super tax rate to 40%.

If your TSB on 30 June 2026 was at or below $3 million, the new Division 296 tax does not apply to you.

What you can do next

With higher contributions caps now available, you may want to review your current salary sacrifice arrangements or consider making personal after-tax contributions.

If you’re thinking about a large after tax contribution, understanding the three-year bring forward thresholds will help you make the most of the new limits.

It’s worth checking your super contributions balance for the current financial year so you know which contribution options apply to you.

If you’re unsure how the latest super changes apply to your situation, you can contact a member of the legalsuper national Member Services Team.

Send us a message, book an appointment, or call us on 1800 060 312.

^{* Division 293 tax is an additional 15% tax on concessional super contributions if your combined income and low-tax concessional contributions exceed $250,000 in a financial year.}