Eight financial changes affecting you from 1 July

Every new financial year brings a reset of tax settings, super caps and payment rates, and 1 July 2026 is no exception. But this year there's a wide gap between what's actually changed and what headlines have implied has changed. Below, we've set out eight changes that are genuinely in effect, followed by a short list of widely reported changes that are not, so you know exactly where you stand.

1. The tax rate cut

The lowest marginal tax rate has dropped from 16% to 15% on the portion of income between $18,201 and $45,000. This is already law and applies automatically through PAYG withholding. It's worth up to $268 a year for anyone earning $45,000 or more, with a further step down to 14% locked in for 1 July 2027.

2. Higher concessional super cap

The concessional (before-tax) contributions cap has increased from $30,000 to $32,500. This affects how much you can contribute via employer super and salary sacrifice combined while still receiving concessional tax treatment.

3. Higher non-concessional super cap

The non-concessional (after-tax) contributions cap has risen from $120,000 to $130,000, with the three-year bring-forward amount increasing from $360,000 to $390,000.

4. Higher transfer balance cap

The general transfer balance cap, that is, the limit on how much can be moved into a tax-free retirement pension, has increased from $2.0 million to $2.1 million.

5. Division 296 tax takes effect

From 1 July 2026, Division 296 applies an additional 15% tax on earnings attributable to the portion of a super balance above $3 million,with a further 10% (25% in total) on the portion above $10 million. Both thresholds are indexed to inflation. This has been one of the most contested superannuation measures in recent years, and the first assessments won't occur until after the end of the 2026–27 financial year. If this could affect you, it's worth getting advice on how the earnings calculation applies to your specific balance.

6. Payday super begins

Employers must now pay superannuation at the same time as wages, rather than quarterly. The Superannuation Guarantee rate itself remains unchanged at 12%. Business owners should confirm their payroll systems and cashflow planning are ready for this shift.

7. Family Tax Benefit indexation

Family Tax Benefit rates have increased under standard indexation. For example, the top rate for a child under 13 has risen from $227.36 to $235.48 a fortnight.

8. Paid Parental Leave extends to 26 weeks

Government-funded Paid Parental Leave now runs to a full 26 weeks, paid in line with the minimum wage rate.

A note on the Age Pension

One common point of confusion: the pension rate itself doesn't change on 1 July;, it's indexed in March and September. What has changed from 1 July is the means test, with income and asset thresholds loosening slightly. The single income-free area, for example, has increased from $218 to $226 a fortnight. This may allow some part-pensioners to receive a little more, or bring some new recipients into eligibility.

What's often reported as changing, but hasn't (yet)

A number of frequently discussed measures are not 1 July 2026 changes at all, and shouldn't be confused with the list above:

A proposed $1,000 instant deduction not yet law

The government has proposed a standard $1,000 deduction for work-related expenses, claimable without receipts, intended to start from the 2026–27 income year. The draft legislation was released for consultation in April 2026 and, as things stand, has not been introduced as a bill. Treat this as proposed rather than confirmed, and continue keeping your receipts in the meantime.

The Capital Gains Tax overhaul

The CGT overhal replacing the 50% CGT discount with inflation indexing and introducing a 30% minimum tax on real gains,, doe not start until 1 July 2027, and is not yet law. It passed the House of Representatives in early June 2026 and remains before the Senate.

Negative gearing changes

Negative gearing changes limiting the deduction to new builds, sit in the same unpassed bill and would also start 1 July 2027 if passed. Existing investment properties would be grandfathered.

The EV fringe benefits tax exemption wind-back‍

The EV frindge benfits tax exemption wind back doesn't begin until 1 April 2027, with a further step-down from 1 April 2029.

The $20,000 instant asset write-off‍

The $20,000 instant asset write-off has been flagged by government as intended to become permanent from 1 July 2026, but this has not yet been legislated. Businesses should proceed carefully here; if the legislation doesn't pass, the threshold would legally revert to $1,000.

Federal energy bill rebates‍

Federal energy bill reates ended on 31 December 2025 and have not been renewed. There's no new household energy rebate this financial year.

Get advice specific to your situation

Several of these changes, particularly Division 296, the proposed $1,000 deduction, and the instant asset write-off's uncertain status, depend heavily on individual circumstances and could shift further aslegislation progresses through Parliament. If you'd like to understand how anyof these apply to you or your business, please get in touch with the team at Causbrooks.

This article is general in nature and does not constitutefinancial, tax or investment advice. It does not take into account yourpersonal objectives, financial situation or needs. Figures are current as at te time of writing; some 2026–27 thresholds may not yet be finalised. Please seek professional advice before acting on any of the information above.