The 2026–27 Federal Budget was announced on 12 May 2026.
This year’s Budget did not introduce major new superannuation policy changes. Instead, it reinforces a range of already legislated reforms and highlights areas of ongoing focus across the super system.
Here’s what that means for members, pension members and employers.
What this means for members
The key change for members is Payday Super, which starts from 1 July 2026.
Under these changes, your employer will pay super at the same time as your wages, instead of quarterly. This means your super should arrive in your account sooner after each pay cycle, and it will be easier to check that contributions have been paid correctly. Payments will generally need to reach your super fund within seven business days of payday.
This reform is designed to improve the timing, visibility and reliability of super payments, helping reduce the risk of unpaid or late super.
From 1 July 2026, contribution caps will also increase:
- The before-tax (concessional) cap increases to $32,500
- The after-tax (non-concessional) cap increases to $130,000
Other changes to be aware of include:
- From 1 July 2027, eligible low-income earners may receive additional support through an increase to the Low Income Superannuation Tax Offset (LISTO). The income threshold will increase to $45,000, with the maximum payment rising to $810
- Super on Paid Parental Leave, which applies for eligible parents of children born or adopted from 1 July 2025
- Additional tax rules for individuals with total super balances over $3 million, where extra tax may apply to earnings linked to amounts above this threshold, with a higher tier for balances above $10 million
What this means for pension members
For members receiving a super income stream, the Budget did not introduce changes to pension taxation or minimum drawdown requirements.
From 1 July 2026, the general transfer balance cap increases to $2.1 million due to indexation. This cap limits how much super can be transferred into retirement phase over a lifetime.
Individual caps will vary depending on how much of the cap has already been used. Otherwise, pension settings remain unchanged.
What this means for employers
The most significant change for employers remains Payday Super, which starts from 1 July 2026.
Under Payday Super:
- Super Guarantee contributions must be paid at the same time as wages, rather than quarterly
- Contributions generally need to be received by the employee’s super fund within seven business days of being paid
- SG continues to be payable at 12%, based on updated definitions of earnings
This reform is designed to improve the timeliness and visibility of super payments, making it easier to identify and reduce unpaid super.
Employers should continue preparing their payroll systems and processes ahead of the 1 July 2026 start date.
Visit Payday Super for all the latest information or call our friendly helpline on 1300 13 44 33.
What’s already locked in
Several important super changes are already legislated and confirmed, regardless of budget announcements:
- Super Guarantee remains at 12%, following the final increase from 1 July 2025
- Payday Super starts from 1 July 2026, changing how and when super contributions are paid
- Contribution caps increase from 1 July 2026 due to indexation
Need help?
Understanding how these changes may affect your super can depend on your personal situation.
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Issued by REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569 as Trustee of REI Super (ABN 76 641 658 449). Information is accurate as at the date of this release and is subject to change.