We post here whenever something changes that's likely to affect your super, tax or retirement planning — not on a fixed schedule, just when there's something worth knowing.
This page is general information only and doesn't take into account your personal circumstances. If you'd like to know how any of these changes apply to you, get in touch for a complimentary chat.
A significant change to how capital gains are taxed is taking effect from 1 July 2027, and now is the time to understand what it means for you. Currently, individuals who hold an asset for more than 12 months receive a 50% discount on the capital gain before tax is applied. From 1 July 2027, that 50% discount is being replaced by a new regime: cost base indexation (adjusting your cost base for inflation) and a 30% minimum tax rate on capital gains. Crucially, gains that accrue up to 30 June 2027 keep the existing treatment — including the 50% discount — with apportionment applying to assets held across the changeover date. This affects anyone holding investment property, shares, managed funds, or assets inside an SMSF. Pre-CGT assets (acquired before 20 September 1985) are also affected: the longstanding assumption that future gains on pre-CGT assets would be exempt is being removed for gains accruing after 1 July 2027. If you hold appreciated long-term assets, it's worth reviewing your position before the end of June 2027. Get in touch to discuss your options.
The ATO has released Draft Taxation Determination TD 2026/D1, which significantly narrows when the CGT main residence exemption applies to inherited properties. The key issue is the "right to occupy" rule: where a deceased person's will gives a beneficiary the right to live in the family home, that right must be express and unambiguous in the will for the CGT exemption to be preserved. Informal or implied arrangements — even if clearly intended by the deceased — are unlikely to satisfy the ATO's revised test. Separately, a deceased estate is only taxed at the concessional rate (ordinary individual rates with the full tax-free threshold) for the first three income years after death. After that window, the estate is taxed at the top marginal rate without a tax-free threshold. For families dealing with — or planning for — an estate that includes a family home, these changes create real risk if wills and estate structures aren't reviewed carefully. Executors also carry personal liability if the estate's tax obligations aren't handled correctly. Speak with us about how this affects your estate plan.
If your total super balance is above $3 million, Division 296 tax has applied since 1 July 2026 — but you won't receive an ATO assessment notice until late 2027 or early 2028. The ATO and large super funds are still working through the attribution calculations, and the first assessment notices are expected to issue in the second half of the 2027–28 income year. Once you receive your assessment, you'll have 84 days to pay and 60 days to elect to have the tax released directly from your super fund rather than paying from personal funds. The fact that no bill has arrived yet doesn't mean there's nothing to do — the calculation is based on your balance and earnings for the year ending 30 June 2026, and the 2026–27 year is already running. If your balance is near or above the $3 million threshold, a strategy review now — whether that's splitting contributions with a spouse, restructuring investments, or considering withdrawals and recontributions — could meaningfully reduce your exposure before the next assessment is calculated. Get in touch to talk through your position.
The legislation banning new limited recourse borrowing arrangements (LRBAs) for residential property inside a self-managed super fund commences on 10 August 2026. From that date, an SMSF can only use an LRBA to acquire real property where the property qualifies as business real property — which effectively closes the door on new geared residential investment purchases inside super. Existing arrangements entered into before 10 August 2026 are grandfathered: if your fund already holds residential property under an LRBA, nothing changes and you are not required to refinance or sell. If you have a purchase in progress, timing now matters a great deal, and getting the contract and loan documentation right before commencement is critical. If you're an SMSF trustee weighing up your options — or considering alternatives such as commercial premises, listed property inside super, or investing outside super — speak with us before the deadline.
Lodgment season is underway, and the ATO has named work-related deductions and omitted income as its two focus areas for 2026. The reminders are familiar but worth repeating: a work expense must relate to earning your income, you must have paid for it yourself without reimbursement, and you need a record to support it. Double-dipping is a common error — claiming electricity or internet separately while also using the 70 cents-per-hour fixed rate method, which already covers those costs. On the income side, side hustles, cash jobs, bank interest and rental income all need to be declared. The ATO has also warned taxpayers to be careful with tax "tips" from AI tools, social media finfluencers, or friends and family, noting that AI often draws on overseas or out-of-date sources — and that you remain accountable for what's in your return regardless of where the advice came from. One practical tip: new pre-fill for taxable payments (TPAR) data won't generally be available until after 28 August, so if you receive contractor income in industries like building, cleaning, couriers, IT or road freight, lodging later in the month reduces the risk of omissions and amendments. Get in touch if you'd like to talk through how this year's changes affect your position.
If you're living overseas and selling Australian property, the foreign resident capital gains withholding (FRCGW) rules deserve a close look before you sign anything. Since 1 January 2025 the withholding rate is 15% of the sale price, and the old $750,000 property value threshold has been removed — so the rules now apply to every property sale, regardless of value. The buyer must withhold 15% and remit it to the ATO unless the seller provides a clearance certificate before settlement. Australian residents can apply for a clearance certificate free through the ATO, but certificates can take up to 28 days to issue, so it's best to apply as soon as the property goes on the market. Non-residents can't obtain a clearance certificate, though they may be able to apply for a variation to reduce the amount withheld where 15% of the sale price exceeds the expected tax. This sits alongside broader ATO scrutiny of expat residency claims — remember that non-residents lose access to the tax-free threshold and to the 50% CGT discount on Australian property for periods of non-residency. See our article on understanding your tax residency status, or speak with us before you sell.
From 1 July 2026, the income thresholds at which the Medicare Levy Surcharge (MLS) applies increase to $105,000 for singles and $210,000 for families. The MLS is an extra charge of 1%–1.5% — on top of the standard 2% Medicare levy — that applies to higher-income earners who don't hold an appropriate level of private hospital cover for the full year. With the thresholds lifting, some people previously caught by the surcharge may no longer be, while others should check whether private hospital cover still makes sense for them. For higher-income households — including expats returning to Australia and self-funded retirees with significant investment income — it's worth reviewing your health cover alongside your overall tax position. Get in touch if you'd like to talk it through.
With the new financial year underway, anyone drawing an account-based pension should confirm they're on track to take at least the minimum required payment before 30 June 2027. The standard minimum drawdown rates apply again this year — there's no COVID-era reduction — and they're based on your age at 1 July: 4% for those under 65, 5% for ages 65–74, 6% for 75–79, 7% for 80–84, 9% for 85–89, 11% for 90–94, and 14% for those 95 and over. The amount is calculated on your pension balance at 1 July (or at commencement, pro-rated if you started partway through the year). It matters: if an SMSF or pension account doesn't pay at least the minimum, the income stream can lose its tax-free retirement-phase status for the year. If you'd like help reviewing your pension strategy for the new year, speak with us.
The Fair Work Commission has increased minimum and award wages by 4.75% for 2026–27. The National Minimum Wage rises to $26.44 an hour — about $1,004.90 a week before tax for a full-time 38-hour week — and around 2.8 million employees covered by modern awards will benefit. The increase takes effect from the first full pay period starting on or after 1 July 2026. For business owners, this lands at the same time as the move to payday super, so it's a good moment to check your payroll settings, employment agreements and cash-flow planning are all up to date. Talk to us if you'd like help thinking through the impact on your business.
1 July 2026 marks one of the most significant new financial years in recent memory for Australians. Here's a quick summary of what's in effect from today: super contribution caps are up (concessional to $32,500, non-concessional to $130,000), the transfer balance cap rises to $2.1 million, payday super kicks in for employers, Division 296 tax applies to super balances above $3 million, the income tax rate on the $18,201–$45,000 bracket drops from 16% to 15%, a $1,000 instant work-related tax deduction replaces the old $300 limit, and the Paid Parental Leave scheme now runs to 26 weeks with super included for eligible recipients. Scroll down for detailed posts on each of these changes, or get in touch to talk through what they mean for your specific situation.
From 1 July 2026, the government's Paid Parental Leave (PPL) scheme extends to 130 days (26 weeks) — up from the previous 20 weeks — and now includes a 12% superannuation contribution on government PPL payments for babies born or adopted from 1 July 2025. This is a significant improvement for working parents, particularly mothers, who have historically seen their super balances fall behind during parental leave. If you or your partner are currently on or planning parental leave, the super contribution is paid directly to your fund and does not count toward your concessional contributions cap. It's also worth reviewing your overall super strategy during career breaks — small additional contributions during this period can make a meaningful difference to long-term balances. Speak with us if you'd like to understand how this fits into your financial plan.
A lesser-known but significant change from 1 July 2026: the way your super guarantee is calculated has changed. "Ordinary Time Earnings" (OTE) — the longstanding basis for SG calculations — has been replaced by "Qualifying Earnings" (QE). In practice, this broadens the earnings base used to calculate your super entitlement. Workers who regularly earn overtime, shift allowances, bonuses or other non-OTE payments may find they are now entitled to higher super contributions than before, as these amounts may now be included in the QE calculation. Employers will need to review their payroll systems to ensure they're calculating SG correctly under the new rules — particularly given that payday super also starts today, meaning any underpayment will be identified faster than under the old quarterly cycle. If you're an employer or a worker with variable earnings, it's worth checking how this change applies to you. Get in touch if you'd like to discuss how this affects your situation.
With the new financial year starting tomorrow, it's worth knowing the updated limits. The concessional (pre-tax) contributions cap increases from $30,000 to $32,500 per year, and the non-concessional (after-tax) cap rises to $130,000 (with the three-year bring-forward limit lifting to $390,000). The transfer balance cap — the lifetime limit on how much you can move into a tax-free pension account — also increases from $2.0 million to $2.1 million. Separately, the Low Income Super Tax Offset (LISTO) increases from $500 to $810 per year, and the income eligibility threshold rises from $37,000 to $45,000, meaning more low-income earners will effectively pay no tax on their super contributions. If you have unused concessional cap space from prior years, now is also the time to check whether the carry-forward rules apply to you. Talk to us about making the most of the new limits.
Two tax changes take effect from 1 July 2026 that will benefit most Australian workers. First, the tax rate on income between $18,201 and $45,000 drops from 16% to 15% — saving eligible taxpayers up to $268 this year, with a further cut to 14% from 1 July 2027. Second, a new $1,000 instant tax deduction for work-related expenses comes into effect for the 2026–27 income year, allowing you to claim up to $1,000 without keeping receipts. This doesn't mean you can't claim more — if your work-related expenses exceed $1,000, you can still claim the full amount with supporting documentation. Both measures are legislated and will apply automatically when you lodge your 2026–27 tax return. If you're a business owner or self-employed, the instant deduction rules work differently — your accountant can advise on what applies to you.
Significant changes to Australia's aged care system have been rolling out since November 2025 under the new Aged Care Act 2024, and more take effect from 1 July 2026. Under the new Support at Home program, government price caps now apply to all home care services. For residential aged care, the government fully funds all clinical care costs (physiotherapy, nursing, medical care) for all residents — regardless of means. However, the accommodation and daily care fee structures have changed, and many self-funded retirees may face significantly higher out-of-pocket costs than those who entered aged care under the old rules. The Refundable Accommodation Deposit (RAD) versus Daily Accommodation Payment (DAP) decision remains critical and depends heavily on your individual assets and cash flow. If you or a family member are planning for aged care — or approaching that stage — it's worth getting proper financial advice before committing to any arrangement. Speak with us about planning ahead.
In a significant shift for self-managed super funds, legislation banning new limited recourse borrowing arrangements (LRBAs) for residential property in superannuation received Royal Assent on 26 June 2026. The ban applies to new arrangements entered into on or after the commencement date (approximately 10 August 2026, 45 days after Royal Assent). If your SMSF already holds residential property under an existing LRBA, you're grandfathered — nothing changes and you're not required to refinance or sell. Commercial property borrowing inside an SMSF is unaffected, and the rules around LRBAs for commercial premises remain in place. For anyone who had been considering using their SMSF to purchase residential property with borrowed funds, that window is now closed for new arrangements. If you're weighing up alternative strategies — direct investment outside super, listed property trusts inside super, or commercial property options — speak with us about what still works within the rules.
From 1 July 2026, the way employers pay super changes significantly. Instead of the current quarterly payment cycle, super guarantee contributions must now be paid within 7 business days of each payroll run — meaning weekly, fortnightly or monthly, depending on how often you pay your staff. The rate remains 12% of ordinary time earnings. Penalties for late payment are steep (up to 200% of the unpaid amount), and the ATO has flagged this as a compliance priority. If you run a business, now is the time to review your payroll software and processes. If you're an employee, you can expect to see super contributions appearing in your fund far more regularly than before — which is good for your balance over the long run.
Division 296 is now in effect from 1 July 2026. If your total super balance exceeds $3 million, earnings above that threshold will be taxed at an effective rate of 30% (up from 15%). For balances above $10 million, the rate rises to 40%. This applies to both accumulation and pension phase balances combined. Importantly, the $3 million threshold is not indexed — so over time, more people will be caught by it. SMSF trustees are particularly affected, as they carry direct responsibility for valuations, record-keeping and meeting any tax liability. If your balance is approaching $3 million, it's worth reviewing your strategy now — options include splitting contributions with a spouse, withdrawing and recontributing, or restructuring investments outside super. Get in touch to discuss your situation.
The ATO has been pushing to replace Australia's complex common-law residency tests with a simpler "bright line" approach, and while the proposed reforms are not yet legislated, the ATO is increasing scrutiny of expat residency claims. Under the proposed new rules: spending fewer than 45 days in Australia in a 12-month period would generally mean you're not an Australian tax resident; spending 183 or more days would generally mean you are; and the 45–183 day range would require additional connection factors to be assessed. Until new legislation passes, the current four tests (Resides, Domicile, 183-Day and Commonwealth Superannuation) still apply. If you're living overseas and unsure of your residency status — or if you're planning a return to Australia — it's important to get clarity before the rules change. See our article on understanding your tax residency status for background, or speak with us directly.
With 30 June fast approaching, here's what's changing from 1 July 2026: the concessional (pre-tax) super contributions cap rises from $30,000 to $32,500, the non-concessional cap rises to $130,000 (with the three-year bring-forward limit increasing to $390,000), and the transfer balance cap increases from $2 million to $2.1 million. The new Division 296 tax — an additional 15% on earnings for total super balances above $3 million — also starts from 1 July 2026. On the income tax side, the 16% tax bracket drops to 15% for income between $18,201 and $45,000, worth up to $268 a year for most taxpayers. See our EOFY checklist for the key dates and contribution strategies to consider before the new financial year.
This year's Federal Budget confirmed previously legislated superannuation changes are going ahead as planned, with no further surprises for super. The main headlines for individuals: higher contribution caps and transfer balance cap from 1 July 2026 (see above), confirmation that the Division 296 additional tax on super balances over $3 million proceeds from 1 July 2026, and a personal income tax cut taking the 16% bracket to 15% from 1 July 2026 — rising again to 14% from 1 July 2027. The Government also flagged a $1,000 instant tax deduction for work-related expenses from 2026–27, removing the need to keep receipts for small claims, and a new Working Australians Tax Offset from 1 July 2027. We'll keep this page updated as draft legislation for these measures progresses.
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