Superannuation Changes in 2026: Higher Contributions, New Rules, and What It Means for Your Retirement

The Big Changes Hitting in 2026

Superannuation is getting a significant shake-up in 2026, with changes affecting everyone from young workers just starting out to retirees already drawing on their savings. Here’s what’s changing and what it means for you.

1. Super Guarantee Hits 12%

The Superannuation Guarantee (SG) has finally reached its long-planned target of 12%, effective from 1 July 2025. This means your employer now contributes 12 cents for every dollar of your ordinary time earnings into your super fund.

What it means for employees:

• Your super balance will grow faster. On a $100,000 salary, that’s $12,000 per year in employer contributions, up from $11,500 at the previous 11.5% rate.
• Some employers may argue the increase reduces the scope for wage rises. Whether this happens in practice depends on your industry and employer, but it’s worth being aware of during salary negotiations.

What it means for employers:

• Higher payroll costs. For a business with 10 employees averaging $80,000 each, the increase from 11.5% to 12% adds $4,000 per year to super obligations.
• Compliance is critical. The ATO actively pursues unpaid super, and penalties are severe.

What it means for self-employed:

• If you’re self-employed, super contributions remain voluntary (unless you’re a contractor treated as an employee). But with the SG at 12%, the gap between what employees receive and what many self-employed people contribute is widening. Consider whether you should be contributing more.

2. New Deeming Rates from 20 March

This one matters most for retirees receiving the Age Pension. From 20 March 2026, the lower deeming rate increases from 0.75% to 1.25% for financial assets under:

• $64,200 for singles
• $106,200 for couples

Why this matters: Deeming rates are used to estimate the income your financial assets generate, which affects your Age Pension eligibility and payment amount. A higher deeming rate means Centrelink assumes you’re earning more from your savings, which could reduce your pension.

Who’s affected: Retirees with financial assets (savings accounts, shares, managed funds, account-based pensions) near the threshold. If you’re currently receiving a part pension, the increased deeming rate may reduce your payment slightly.

What to do: If you’re close to the income threshold, speak with a financial adviser before 20 March to understand how the change affects you and whether any adjustments to your asset allocation could help.

3. Proposed Changes for High Super Balances

Treasurer Jim Chalmers introduced the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill on 11 February 2026. The key proposals:

Division 296 Tax on High Balances

• Super balances above $3 million would face an additional 15% tax on earnings (on top of the existing 15% within super)
• This effectively creates a 30% tax rate on earnings attributable to the portion of your balance above $3 million
• The measure is designed to affect approximately 80,000 Australians

Payday Super

• Employers would be required to pay super at the same time as wages, rather than quarterly
• This prevents employers from holding onto super contributions and ensures your money is invested sooner
• Expected to take effect from 1 July 2026

Super on Government Paid Parental Leave

• The government proposes paying super contributions on its Paid Parental Leave scheme
• This addresses a gap that has disproportionately affected women’s retirement savings

4. The New Retirement Benchmark: $630,000

The Association of Superannuation Funds of Australia (ASFA) has released its updated Retirement Standard. The numbers have increased:

These are lump sum amounts needed at age 67, assuming you own your home outright.

A reality check: Even the “comfortable” benchmark includes only one modest international holiday every seven years. If you’re planning a more active retirement with regular travel, you’ll need to aim higher.

The comfortable standard assumes annual spending of approximately:

• $52,000 for singles
• $73,000 for couples

If your retirement vision includes more than this, work backward from your desired lifestyle to calculate your actual target.

Are You on Track?

Here’s a rough guide to whether your super balance is on track for a comfortable retirement:

Approximate targets assuming the ASFA comfortable standard.

If you’re behind, the good news is that catch-up contributions are available. From age 67 (previously 65), you can still make voluntary contributions, and unused concessional contribution caps from previous years can be carried forward.

What You Should Do Now

1. Check your super balance and fund performance. Log into your super fund’s portal and review your current balance, investment option, fees, and insurance.

2. Consider salary sacrificing. Additional contributions above the SG reduce your taxable income and boost your retirement savings. The concessional contribution cap for 2025-26 is $30,000.

3. Review your investment option. If you’re decades from retirement, a growth-oriented option typically delivers better long-term returns. If you’re closer to retirement, a balanced or conservative option reduces volatility.

4. Get advice before the deeming rate change. If you’re a retiree receiving the Age Pension, understand how the 20 March change affects you.

5. Talk to a financial adviser. Super is one of the most tax-effective wealth-building tools available. A financial adviser can help you optimise your contributions, investment strategy, and retirement plan.

Find a Super Specialist

Whether you need help with SMSF setup, contribution strategies, or retirement planning, find a financial adviser near you on WealthWorks.