Changes to super rules from 1 July 2026

Before now, employers only had to pay super once a quarter. That meant your super could be paid later, rather than each payday.

From 1 July 2026, that changes. Your employer must pay your super within 7 business days of each payday. This is great news, as the sooner your super lands in your account, the sooner it starts growing.

Find out how these changes could benefit you.

Welcoming a new child is one of life’s biggest moments. Your super shouldn’t have to take a backseat while it happens.

Parents who received the government-funded Parental Leave Pay for a child born or adopted* on or after 1 July 2025, may be eligible to be paid super in addition to their Parental Leave Pay.

_{* or regarded as having been born on or after this date for the purposes of the Paid Parental Leave Act 2010}

How much super will I receive?

The super contribution is 12% of your Parental Leave Pay. This matches the minimum mandatory Superannuation Guarantee rate.

When will the super reach my account?

The Australian Taxation Office will generally pay this super after the end of the financial year. So, if you received the government-funded Parental Leave Pay in the 2025/26 financial year, you should expect the payment to be made after July 2026.

Learn more about the Parental Leave Pay super contribution on the ATO's website.

There are yearly limits on how much you can add to super. These are called contribution caps. From 1 July 2026, the caps increase, giving you more room to grow your super.

What is a concessional contribution?

A concessional contribution is money that goes into your super before tax is applied. This includes your employer's regular Superannuation Guarantee payments, any salary sacrifice payments and any personal contributions you’ve claimed a tax deduction for.

Concessional contributions are generally taxed at 15% in super.^{^} For many people, that is lower than their usual income tax rate.

What is a non-concessional contribution?

A non-concessional contribution is money you put into super from your take-home pay. As you’ve already paid tax on it, no extra tax applies when it enters your super account.

What is the bring-forward rule?

The bring-forward rule allows eligible individuals to contribute up to three years' worth of non-concessional contributions in a single year. This can be useful if you come into a lump sum of money, such as an inheritance or property sale and want to put a large amount into your super. From 1 July 2026, the maximum under this rule increases from $360,000 to $390,000.

_{^ If the total of your combined income and concessional contributions is more than $250,000 per financial year, any concessional contributions over this threshold will be taxed at 30%. This extra 15% tax is often referred to as 'Division 293 Tax'. Find out more by visiting the ATO’s website or by seeking your own tax advice.}

If you’re on a low-to-middle income and add a little extra to your super from your take-home pay, the government may match part of it at no cost to you.

How it works

If your income for the 2026/27 financial year is below $49,293 and you contribute $1,000 of your take home pay to your super, the government will add up to an extra $500 to your account. The amount the government will contribute reduces as your income rises and stops at $64,293. Visit the ATO’s website for more information on co-contribution limits.

Your employer pays super on your earnings, but only up to a limit. That limit is called the maximum contribution base (MCB). Your employer doesn’t have to pay super on any earnings above the MCB.

From 1 July 2026, the MCB becomes an annual figure rather than a quarterly one. The new amount is $270,830 per year.

Example

If you earn $350,000 a year, your employer only needs to calculate your super on the first $270,830. They do not need to calculate super on the remaining $79,170.

What it means for you

If you earn below $270,830, this change doesn't affect you.

If you earn above that, your employer still isn't required to pay super above the MCB. The change just updates the limit from being measured quarterly to annually.

Learn more about the Maximum Contribution Base.

While you’re working and growing your super balance, your investment earnings are typically taxed at 15%. When you retire, you can move your super into an account-based pension. In this type of pension account, the investment earnings are tax-free.

There’s a limit on how much you can move into an account-based pension though. This is known as the Transfer Balance Cap. From 1 July 2026, this limit will increase from $2 million to $2.1 million.

If you're close to retiring or already retired, this increase means you may be able to move $100,000 more of your super into a tax-free pension.

That's a significant amount of money earning returns without tax being taken from it.

Learn more about the Transfer Balance Cap.

If your total super balance (across all your super accounts both in and out of Mercer Super) is under $3 million, this change doesn’t affect you.

What is the tax change?

Investment earnings inside super are normally taxed at 15%. From 1 July 2026, a new tax (known as Division 296) adds an extra tax on total super balances over $3 million.

How does the additional tax work?

For total super balances between $3 million and $10 million, there’ll be an additional 15% tax (totalling 30%) on the amount above $3 million.

For balances above $10 million, there’ll be a further 10% tax (totalling 40%) on the amount above $10 million.

Example

Your total super balance is $4 million. The 30% tax only applies to the earnings on $1 million, the amount above $3 million. The other $3 million is completely unaffected and is taxed at 15% as it always has been.

What it means for you

If your total super balance is below $3 million, nothing changes. If your total super balance is above $3 million by the end of the 2026/27 financial year, then additional taxes will apply.

Learn more about the new investment tax changes.