Unsurprisingly the 2026–27 Federal Budget pushed ahead with its tax reform agenda, touching discretionary trusts, capital gains, negative gearing, and in a move that caught many off guard, the proposed removal of the long-standing CGT exemption on pre-1985 assets.

For SMSF trustees and their advisers, though, it was a different story. After the recent landmark passage of Division 296 and with Payday Super already on the runway, the Budget was a quiet night for the super / SMSF sector – no major new obligations, no surprises. For trustees and advisers, that stability is welcome.

Here’s what you need to know.

Confirmed: What’s Changing from 1 July 2026

Super Guarantee: 12% and holding

After years of incremental increases, the Super Guarantee rate has reached its legislated ceiling of 12%. There are no further increases planned.

Division 296: Now Law

Division 296 received Royal Assent on 13 March 2026 and will apply from 1 July 2026. It is a personal tax applying to individuals whose total superannuation balance across all funds exceeds $3 million.

The tax rates that apply to affected earnings are:

  • $3M – $10M: an additional 15% on earnings attributable to this portion (bringing the effective rate to 30%)
  • Above $10M: an additional 25% on earnings attributable to this portion (bringing the effective rate to 40%)

Importantly, the final legislation removed unrealised gains from the calculation, a significant change from the original proposal. Also worth noting for SMSF trustees: there is a one-off transitional CGT relief measure, allowing funds to reset the cost base of directly-held assets to their market value as at 30 June 2026, so that pre-regime capital growth isn’t retrospectively taxed.

The threshold will also be indexed over time, increasing in $150,000 / $500,000 increments respectively.

For a full breakdown, our Division 296 resource hub has everything you need – including a free calculator for affected clients.

Explore our Division 296 Resources

Payday Super: More Frequent, More Visibility

From 1 July 2026, employers must pay super on the same day as wages. For most SMSF trustees who are employees, this is largely an administrative change – but it does raise a practical issue worth flagging with clients.

SMSFs need to be compliant to receive contributions promptly. For trustees who are behind on their lodgements, or whose fund has compliance issues, there’s a real risk that contributions may not be processed in time – which could create problems for employers under the new payday rules.

It’s worth encouraging clients to check in with their employer or payroll provider to confirm contributions are being received and processed correctly. And for any trustee whose SMSF isn’t currently in a position to accept contributions, it may be appropriate to consider a retail or industry fund as a temporary alternative while they get their fund back on track.

Contribution Caps Are Going Up

From 1 July 2026:

  • The concessional contributions cap increases from $30,000 to $32,500
  • The non-concessional contributions cap rises to $130,000 (up from $120,000)
  • The CGT cap amount (or lifetime cap) increases to $1,935,000

These higher caps may create additional opportunities for clients who want to accelerate their super savings. It’s worth reviewing contribution strategies before the new financial year kicks off.

Proposed: What Could Change from 1 July 2027

The following measures have been announced in the Budget but are still subject to legislation. Keep an eye on these as they progress through parliament.

SMSFs Exempt from CGT Discount Changes

The Government has proposed changes to the CGT discount rules for certain investment structures, with SMSFs explicitly carved out. This is positive news and confirms that SMSFs continue to be treated as a distinct and important part of the retirement savings landscape.

More Investment in ASIC Oversight

Proposed additional funding to ASIC will strengthen superannuation governance and performance testing. For advisers, this reinforces the importance of maintaining robust fund documentation, governance processes, trustee decision records, and investment strategies watertight.

Super on Expanded Paid Parental Leave

Building on the 2025 changes, the Government proposes extending the Super Guarantee to cover the expanded Paid Parental Leave scheme from 2027. This continues the broader policy direction of ensuring parental leave doesn’t erode retirement savings.

The Bottom Line for Advisers

The 1 July 2026 changes are confirmed and worth acting on now.

  • Review contribution strategies in light of the higher caps,
  • Identify any clients approaching the Division 296 thresholds, and
  • Engage clients on Payday Super readiness.

Do you have questions about how these changes affect specific clients?

Our team of SMSF experts is here to help you gain strategic insights, avoid pitfalls, find answers to essential questions, and stay compliant and confident. Book a consultation today or call us on 1300 023 170.

Disclaimer: General information only. SuperConcepts does not provide financial product advice. Consider your circumstances and seek licensed advice where appropriate.