New Financial Year, New Super Rules: What FY27 Could Means For You

A new financial year often brings updated superannuation caps and thresholds, and 2026-27 is no exception. Contribution limits rose on 1 July 2026, giving clients modestly more room to build their superannuation balance. At the same time, a substantial reform agenda is reshaping capital gains and property taxation from 1 July 2027, with further changes to trust taxation still under consideration. For clients focused on long-term wealth structuring, the year ahead is as much about preparing for what comes next as it is about making the most of what is available now. 

Higher Caps for FY27 

The Superannuation Guarantee holds steady at 12% for 2026-27, the first year without a further increase since the legislated schedule reached its final step on 1 July 2025. Contribution caps, however, stepped up from 1 July 2026, giving clients more room to build their superannuation balance this financial year. 

Contribution Caps Rise From 1 July 2026

Separately, the general transfer balance cap also rose, to $2.1 million from 1 July 2026. This cap governs pension transfers, but the same figure sets the total superannuation balance (TSB) threshold for non-concessional eligibility, so that threshold rose too. 

Consider Andrew, 61, whose $1.7 million TSB sits comfortably below the thresholds. He remains eligible not only for non-concessional contributions, including the potential to use the full $390,000 bring-forward cap, he could also potentially transfer his balance which sits under $2.1 million into a tax-free retirement pension. 

For clients with capacity, using the bring-forward rule while balances remain below the relevant threshold may be one of the quickest strategies to accelerate superannuation savings. 

The Low Income Superannuation Tax Offset has also increased, from $500 to $810, with the eligibility threshold rising from $37,000 to $45,000, extending its reach to more clients’ adult children and lower-income family members. 

Division 296 Now in Effect 

Division 296 tax commenced on 1 July 2026, and 2026-27 is the first year in scope, measured against a client’s total superannuation balance at 30 June 2027. Both thresholds are indexed to CPI, the $3 million mark in $150,000 increments and the $10 million mark in $500,000 increments. 

Where Division 296 Applies

Couples with uneven balances may continue to find value in rebalancing strategies, such as spouse contribution splitting or recontribution strategies, to help manage their overall position over time. 

See Understanding Division 296 for a fuller overview. 

Capital Gains and Property from 1 July 2027 

Beyond superannuation, the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026 and takes effect from 1 July 2027, reshaping capital gains and property taxation across four fronts.

These changes may materially affect clients holding investment property, long-held company shares, or other pre-1985 assets, and are worth reviewing well ahead of the 1 July 2027 start date. Separately, from 10 August 2026, SMSFs face a new ban on limited recourse borrowing arrangements for residential property, though existing arrangements are grandfathered.  

See Federal Budget Explained for further detail on these and other Budget measures. 

On the Horizon: Trust Taxation 

Separately, the 2026-27 Federal Budget flagged a proposed minimum 30% tax on discretionary trust income, intended to commence from 1 July 2028. This measure has not yet been legislated, no exposure draft has been released, and consultation is expected before any final form is settled. A three-year rollover relief window, from 2027 to 2030, has also been flagged to ease any restructuring clients may wish to consider if the measure proceeds. Clients who distribute income through discretionary trusts, including those using bucket company arrangements, may wish to keep this development on their radar, though no structural changes should be made on the basis of an announcement alone.  

See our Federal Budget Summary for more on the proposed trust measures. 

Start Planning Now 

The year ahead combines higher superannuation caps to use now, Division 296 in effect, a settled reform package affecting capital gains and property from 1 July 2027, and a significant trust taxation proposal still working its way through consultation. Clients approaching key thresholds, or holding assets or structures that may be affected by these changes, may benefit from reviewing their position sooner rather than later. Speak with your adviser to explore how these changes may apply to your circumstances.