Superannuation Changes in 2026: What Div296 and PayDay Super Mean for Your Wealth
Key Takeaways
- Div296 overhaul introduces tiered tax rates for super balances above $3M and $10M, starting 1 July 2026.
- PayDay Superannuation law requires employers to pay Super Guarantee within 7 business days of wages.
- Economic outlook for 2026 shows steady growth and opportunities for investors.
- SMSF members must take extra care to meet annual minimum payment requirements to avoid losing the pension exemption.
- Age pensioners have a bit more flexibility without earned income affecting their pension benefits.
Introduction
More superannuation reforms are coming in 2026, which will impact high-balance super holders and employers. The government has revised Div296 policy and the new PayDay Superannuation legislation aims to improve fairness and compliance in Australia’s retirement system. Combined with a shifting economic outlook, these changes make it critical to review your strategy now.
This guide explains what’s changing, why it matters, and how you can prepare.
Div296 Explained: New Rules for High-Balance Super Accounts
From 1 July 2026, the government will implement a tiered tax system for large super balances if legislation is implemented:
What this means for you:
- If your Total Super Balance (TSB) exceeds $3M, a portion of your earnings will attract higher tax.
- SMSF members and defined benefit interests are included.
- The ATO will calculate liabilities, but funds must report realised earnings.
Action steps:
- Clients should hold off taking any action until we know more. There are still many details yet to be clarified with the amended Div296 policy so we ask clients to continue to be patient.. Continue to speak to your adviser, who will keep you updated when further details are released by the government.
PayDay Superannuation: On-Time Employer Contributions Become Law
The Treasury Laws Amendment (PayDay Superannuation) Bill 2025 introduces a major compliance shift:
- Start date: 1 July 2026.
- New rule: Employers must pay Super Guarantee within 7 business days of paying wages (Qualifying Earnings).
- Penalties: Increased fines for late payments.
- Impact: Small businesses may face challenges adapting to real-time reporting. The change in timing of SGC payments in the first year may result in employees exceeding their concessional contribution cap if they are also salary sacrificing into super.
Why it matters:
This change aims to reduce unpaid super and improve retirement outcomes. Employers should ensure they understand this new law by utilising available education tools and resources that are available. Payroll systems will need to be updated and staff educated prior to 1 July commencement date.
Economic Outlook for 2026: What Investors Should Know
Australia’s economy is forecast to improve to 2.3% in 2026, with inflation easing to 3.0%. Key trends include:
- AUD strength: Expected to rise to US70 cents in 2026.
- Commodity recovery: Wheat, corn, and soybeans undervalued, leading to opportunities for agribusiness investors.
- Global stability: Growth is healthy but not spectacular.
Investor takeaway:
Diversification across all asset classes and sectors remains critical.
Practical Steps to Prepare
For Individuals
- Review super contributions strategies to ensure caps won’t be breached, and ensure annual minimum pension payments are made.
- Understand Work Bonus rules if you’re a pensioner and partake casual work.
For SMSF Trustees
- Ensure compliance with updated ATO rulings on income streams and minimum payment standards.
For Employers
- Seek advice on what upgrades need to occur to your payroll systems in preparation for PayDay Super compliance.
Conclusion
Once again, 2026 brings more superannuation changes. Whether you’re an investor, employer, or retiree, proactive planning is essential to protect and grow your wealth.
Ready to prepare?
Speak to a Morgans adviser today for tailored strategies on superannuation, SMSF compliance, and investment planning.
Morgans clients receive exclusive insights such as access to our latest Your Wealth publication. Contact us today to begin your journey with Morgans.
FAQs
1. What is Div296 and who does it affect?
Div296 applies to individuals with super balances above $3M. It introduces higher tax rates on realised earnings for large balances.
2. When does PayDay Super start?
The law takes effect on 1 July 2026, requiring employers to pay super within 7 business days of wage payment.
3. Will unrealised gains still be taxed?
No. The new system taxes realised gains only, aligning with existing income tax concepts.
4. How can I prepare for these changes?
Some changes such as Div296 are not yet legislated so no action should be taken yet until details are clearer. For PayDay Super changes, employers should review their payroll systems and seek professional advice..
5. Where can I find official guidance?
Visit the ATO website and Treasury fact sheets for detailed updates.
