End-of-Financial-Year Tax Update: Actions Required Prior to 30 June 2026 and Legislative Changes from 1 July 2026
As we rapidly approach the end of the financial year, it is the perfect time to ensure your tax affairs are in order and to prepare for a series of significant regulatory changes.
To help you stay ahead, we have broken down this update into two focus areas:
1. Critical actions to take before 30 June 2026
2. Key changes taking effect from 1 July 2026
📅 Part 1: Critical Actions Prior to 30 June 2026
To legally maximise your deductions, ensure the following items are completed before the midnight deadline on June 30.
Personal Super Contributions
If you are looking to lower your personal taxable income, topping up your superannuation is one of the most effective strategies available.
Utilise Your Cap: Consider making additional personal concessional contributions before year-end to maximise your remaining cap space.
Check Carry-Forward Amounts: If eligible, check whether you have unused concessional contribution carry-forward amounts available from the past five years to make a larger deduction.
The NOI Requirement: Ensure the Notice of Intent to Claim a Tax Deduction form is completed, sent to, and formally acknowledged by your super fund.
Timing Warning: Superannuation is only deductible in the financial year the fund receives the cash, not when you transfer it. Clear these payments 5–7 business days before 30 June to ensure bank processing backlogs don't cost you your deduction.
Pay Employee Superannuation Early
If you have employees, handling employee super obligations early can alter your final tax position for the year.
Paid vs Accrued: Remember that employee superannuation is only tax-deductible when it is received by the super fund, not simply when it is accrued in your payroll software.
Ensure all employee superannuation guarantee (SG) contributions are processed and paid well before 30 June 2026 if you want to claim the tax deduction in the 2026 financial year.
🚀 Part 2: Major Changes Commencing 1 July 2026
Here is what you need to prepare for the new financial year:
Super Contribution Caps:
Concessional cap rising to $32,500 and the non‑concessional cap to $130,000
Allowing you more room to build wealth in super, a tax-effective environment.
Payday Super
Super Guarantee payments shift to a payday model.
Super payments must generally align with salary/wage frequencies.
The ATO is retiring the Small Business Super Clearing House (SBSCH).
Businesses must review payroll software, cash flow cycles, and clearing house integrations immediately to ensure compliance with the new alignment.
Transfer Balance Cap
The transfer balance cap increasing to $2.1m (up from $2.0M)
The maximum amount you can move into a tax-free retirement pension phase has increased.
Personal Tax Brackets
The tax rate for the $18,201 to $45,000 bracket drops from 16% to 15%
This minor adjustment puts extra automated cash back into employees' take-home pay over the year.
National Minimum Wage
National Minimum Wage increases by 4.75% to $26.44/hour ($1,005/week)
Applies from the first full pay period starting on or after 1 July 2026. Review wage rates immediately
If you require any assistance or have any questions regarding the above items, please contact our office as soon as possible and we will be happy to assist.
Disclaimer: The information contained in this email is of a general nature only and does not constitute personal taxation, financial, or legal advice. It has been prepared without taking into account your specific personal objectives, financial situation, or needs. Before acting on any information in this document, you should consider its appropriateness to your circumstances and seek independent professional advice.