Super, budget changes make EOFY review critical

Binaya Dahal

Journalist

1 July 2026

Major superannuation changes and tax reforms announced in Federal Budget have made this end of financial year (EOFY) one of the most significant transition periods in recent years, according to HLB Mann Judd. 

Andrew Buchan, partner at the accounting and advisory firm, said the increase in superannuation contribution caps, introduction of Payday Super, income tax cut and range of federal government’s proposed tax measures mean Australians are now at a natural point to review their financial position.

“Many people only think about their finances at tax time, but some of the most valuable opportunities arise from planning ahead rather than looking backwards,” he said.

“Reviewing your superannuation, investments, insurance, estate planning and cash flow together, rather than in isolation, gives you the best chance of achieving your long-term financial goals.”

From 1 July, the concessional superannuation contribution cap will rise to $32,500, while the non-concessional cap will increase to $130,000. Eligible Australians under 75 will also be able to contribute up to $390,000 under the bring-forward rule.

“These higher contribution caps provide greater flexibility for Australians looking to boost their retirement savings, particularly those approaching retirement who may have greater capacity to contribute after paying down debt or selling an asset,” Buchan said.

However, he warned that contribution strategies need to be carefully planned as exceeding the caps or failing to consider total superannuation balance can have unintended tax consequences.

Another key reform is the introduction of Payday Super, which will require employers to pay super contributions at the same time as wages rather than on a quarterly basis.

“For millions of Australians, Payday Super means retirement savings begin working harder sooner,” Buchan said.

“More frequent contributions can improve investment outcomes over time and also provide greater transparency, allowing employees to identify unpaid super much earlier.”

Alongside superannuation changes, Australians will also receive modest income tax relief, with the marginal tax rate on income between $18,201 and $45,000 falling from 16% to 15%.

While the tax cut won’t dramatically change household budgets, Buchan said every dollar counts in the current cost-of-living environment.

“It’s also an opportunity to consider directing some of that additional take-home pay into long-term savings or superannuation,” he said. 

He added Australians should also keep a close eye on proposed Federal Budget measures affecting capital gains tax, negative gearing, SMSF property investing, discretionary trusts and the proposed Division 296 tax on super balances exceeding $3 million.

“Many of these proposals have generated significant discussion, but it’s important to remember that not all of them have become law,” Buchan said. 

“People shouldn’t make major financial decisions based on headlines alone. Understanding what has changed and what is still only proposed is critical before restructuring investments or retirement plans.”