A new financial year has arrived, and with it a long list of changes to tax, superannuation, wages and small-business rules. Some put a little more in your pocket, some let you save more for retirement, and a couple matter most if you have a larger super balance or run a business. Here is our quick guide to the eleven that are most likely to touch your finances.
In a nutshell
- Most workers get a modest income-tax cut, and the minimum wage and Medicare levy surcharge thresholds rise.
- You can now put more into super each year, and from this year employers pay your super alongside your wages.
- The tax-free retirement transfer balance cap lifts to $2.1 million; the new Division 296 tax targets very large balances above $3 million.
- Business owners gain a permanent $20,000 instant asset write-off and the return of the loss carry-back offset.
The 11 changes at a glance
| # | Change | From | To |
|---|---|---|---|
| 1 | Income-tax cut (lowest bracket) | 16% | 15% |
| 2 | National minimum wage | $24.95/hr | $26.44/hr |
| 3 | Concessional (pre-tax) super cap | $30,000 | $32,500 |
| 4 | Standard work-expense deduction | Receipts | $1,000 option |
| 5 | Paid parental leave | 24 weeks | 26 weeks |
| 6 | Medicare levy surcharge (single) | $97,000 | $105,000 |
| 7 | Payday super | Quarterly | Each payday |
| 8 | Transfer balance cap | $2.0m | $2.1m |
| 9 | Division 296 super tax | — | +15% over $3m |
| 10 | Instant asset write-off | Temporary | Permanent $20k |
| 11 | Loss carry-back offset | — | Reinstated |
Tax and your take-home pay
1. A tax cut for most workers. The tax rate on income between $18,201 and $45,000 falls from 16 per cent to 15 per cent. For anyone earning $45,000 or more, that is worth about $268 this financial year, rising to roughly $536 next year. A further cut, to 14 per cent, is legislated to follow on 1 July 2027.
2. Minimum wage increase. The national minimum wage rises 4.75 per cent to $26.44 an hour. A full-time minimum-wage worker on a 38-hour week now earns about $1,004.90 a week, up from $948.
3. A new $1,000 standard work-expense deduction. You can now choose an automatic $1,000 deduction for work-related expenses instead of keeping receipts and claiming the actual amount. If your genuine work expenses already come to more than $1,000, you are better off continuing to claim the actual cost, and that option remains. The standard deduction first applies to your 2026-27 return, which you will lodge next year.
4. Higher Medicare levy surcharge thresholds. The income thresholds for the Medicare levy surcharge increase, so a single person can now earn up to $105,000 before the surcharge applies. That gives higher earners without private hospital cover a little more room before the extra tax kicks in.
Superannuation
5. Higher contribution caps. The amount you can contribute to super at the concessional 15 per cent rate rises from $30,000 to $32,500 a year. The non-concessional (after-tax) cap lifts from $120,000 to $130,000, and the three-year bring-forward limit rises from $360,000 to $390,000. Keep in mind that compulsory employer contributions count towards the concessional cap, so high earners have a little less room for salary sacrifice than the headline figure suggests.
6. Payday super begins. Employers previously had to pay super only quarterly. From this financial year your super must be paid within seven business days of each payday, alongside your wages. Money reaching your account sooner means more time to compound, which over a career can add up to a meaningful difference at retirement.
7. Transfer balance cap rises to $2.1 million. The amount of super you can move tax-free into the retirement (pension) phase increases from $2 million to $2.1 million. The new cap applies if you start a retirement-phase pension for the first time from 1 July. If you began a pension earlier, your personal cap stays between $1.6 million and $2 million, depending on when you started and how much you transferred.
8. Division 296 tax on very large balances. Earnings on the part of a super balance above $3 million face an extra 15 per cent tax under the new Division 296 measure, with a higher rate applying to earnings on balances above $10 million. This affects only a small number of people with very large balances, but the rules are complex, so please talk to us if you think you may be close to the threshold.
Families
9. More paid parental leave. Government paid parental leave increases by 10 days. Families are now entitled to up to 130 days (26 weeks, up from 24) for a child born or adopted on or after 1 July 2026, and the number of days reserved to share with a partner rises from 15 to 20.
If you run a business
10. A permanent $20,000 instant asset write-off. The small-business instant asset write-off is now permanent and increased to $20,000. Businesses with turnover under $10 million a year can immediately deduct the business portion of an asset costing up to $20,000. It can be used for multiple assets, new or second-hand, provided each is first used or installed ready for use this financial year.
11. The loss carry-back offset returns. The loss carry-back tax offset is back. From 1 July, companies with turnover under $1 billion can offset a tax loss against tax paid in the previous two financial years, rather than only carrying losses forward to offset future profits.
What this could mean for you
A little more take-home pay: the tax cut and higher surcharge threshold lift after-tax income for most earners — worth reviewing alongside your savings or salary-sacrifice plans.
Room to save more in super: higher caps and payday super make this a good year to revisit your contribution strategy.
Retirees and large balances: the higher transfer balance cap and Division 296 make timing and structure more important if your balance is sizeable.
Business owners: the permanent write-off and loss carry-back can change the timing of purchases and tax planning.
We're here to help. If you'd like to understand how any of these changes apply to your situation, please get in touch and we'll talk it through.
Navarino Wealth is an Authorised Representative (No. 377 450) of PFP Financial Services Pty Ltd, AFSL 535484. This article contains general information only and does not take into account your objectives, financial situation or needs. It is based on Government announcements and legislation as at 30 June 2026; some measures may be subject to change. You should consider whether the information is appropriate for your circumstances, and obtain personal financial (and, where relevant, taxation) advice, before acting on it.