In short

1 July can reset super's key thresholds: the concessional and non-concessional contribution caps, the transfer balance cap, and total super balance thresholds, though they only rise when indexation has moved enough to trigger a step. The Age Pension does not change on 1 July at all — its rates and thresholds index on 20 March and 20 September. Confirm the current figures each year rather than assuming they've moved.

For superannuation, 1 July is the great reset. It's the start of the financial year, the date on which a string of super caps and thresholds can change, and a natural prompt to take stock of your retirement plan. But two things trip people up every year: not knowing which figures actually move on 1 July (as opposed to other dates), and assuming that any change is automatic and always in their favour. Neither is quite right. So here's the calm, practical version — what can change on 1 July, the important thing that doesn't, and the short review the new financial year is a good excuse to do. This article is general information only, not personal advice.

What can change on 1 July?

Most of the action on 1 July is in superannuation, where several limits are indexed. This year is a good illustration, because a number of them actually did step up. The concessional (pre-tax) contributions cap — the limit on salary sacrifice and personal deductible contributions — is indexed to wage growth and rises in $2,500 increments, and from 1 July 2026 it increased from $30,000 to $32,500 (ATO, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps). The non-concessional (after-tax) contributions cap is set at four times the concessional cap, so it moved with it — from $120,000 to $130,000 from 1 July 2026 — and the bring-forward limits, which let eligible people make up to three years of non-concessional contributions at once, rose to $390,000 over three years, subject to total-super-balance thresholds (ATO, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps).

The general transfer balance cap — the lifetime limit on how much you can move into the tax-free retirement (pension) phase of super — is indexed to inflation in $100,000 steps, and it increased from $2.0 million to $2.1 million on 1 July 2026 (ATO, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-newsroom/general-transfer-balance-cap-indexation-on-1-july-2026). The total super balance thresholds, which govern whether you can make further non-concessional contributions and use carry-forward, are tied to that cap. The Super Guarantee rate — the percentage employers must pay into super — reached its legislated maximum of 12% on 1 July 2025 and stays at 12%, so for most people it's now stable rather than climbing each year as it did for a while (ATO, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee). A few other figures, including some aged-care thresholds and the funeral-bond allowable amount, are also reviewed on 1 July, so confirm those current amounts too if they bear on your plan.

What is the big caveat: might it not have changed at all?

Here's the part people miss. Because these caps index in steps — the concessional cap in $2,500 increments, the transfer balance cap in $100,000 increments — they only rise when the underlying index has moved enough to trigger a full step, and in plenty of years they don't change at all. The 2025-26 year was an example: the concessional cap held at $30,000 and the transfer balance cap held at $2.0 million, neither having moved enough to step up. This year (2026-27) both did. So the right instinct on 1 July isn't "the caps have gone up"; it's "let me check whether they've gone up." Don't assume an increase, and be wary of any plan built on a rise that hasn't actually happened — confirm the current figures before you act on them.

What does not change on 1 July?

This is the most common misconception of all. The Age Pension does not change on 1 July. Its payment rates, and the assets and income test thresholds, are indexed on 20 March and 20 September each year, and the deeming rates and thresholds move on those dates too (DSS Social Security Guide 5.1.8.10, https://guides.dss.gov.au/social-security-guide/5/1/8/10). So if you're waiting for a "new financial year" boost to your pension, you're waiting for something that doesn't happen on that date — the pension adjustments land in autumn and spring instead. It's worth holding onto this, because it means two different calendars run your retirement: the super settings reset on 1 July, while the Age Pension resets in March and September. Knowing which is which keeps your budgeting and your planning straight.

What should your start-of-year review cover?

The new financial year is a good, recurring prompt to run through a few things. The first is your contribution room: check whether the concessional or non-concessional caps have actually risen — this year they did, to $32,500 and $130,000 — because if they have, there may be more room to contribute. The second is your personal transfer balance cap: if the general cap has indexed (as it has, to $2.1 million), remember your own cap is proportionally indexed based on how much of it you've already used, so it isn't simply the new headline figure — check it before moving more into pension phase. Third is carry-forward: unused concessional cap can be carried forward for five years on a rolling basis, so each new year the oldest year drops off, and the start of the year is the time to see what's about to expire and decide whether to use it. Fourth, if a large non-concessional contribution is on your mind, plan any bring-forward early in the year, keeping the age-75 cut-off and your total super balance in view. And finally, do the general housekeeping — review your super death-benefit nominations (binding nominations generally lapse every three years), your enduring power of attorney, your will, and your plan as a whole.

What do the worked examples show?

These show the two start-of-year lessons in practice. They are illustrative only — not personal advice, and the figures change with indexation.

David, 59, salary-sacrifices steadily into super and likes to use as much of his concessional cap as he comfortably can. At the start of the new financial year he checks the figure rather than assuming. On these facts the check pays off: the concessional cap rose from $30,000 to $32,500 on 1 July 2026 (ATO, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps), so he has an extra $2,500 of pre-tax room this year, and the after-tax cap has likewise risen to $130,000 if he wants to add more outside the concessional limit. On these facts it is generally rational for David to adjust his salary-sacrifice arrangement upward to use the higher cap if it suits his budget — but only after confirming the figure, because in a year when the cap doesn't step up (as in 2025-26) the same move could tip him over and trigger excess-contributions tax. The discipline is checking, not assuming.

Margaret, 66, started an account-based pension a couple of years ago and used most, but not all, of her transfer balance cap at the time. She hears the general cap has gone up to $2.1 million and wonders if she can now move another $100,000 into pension phase. On these facts the headline rise doesn't simply pass through to her: once you've started a retirement-phase pension, your personal transfer balance cap is indexed only proportionally, based on the unused portion of your cap, so Margaret's personal increase is a fraction of the full $100,000 — not the whole step (ATO, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-newsroom/general-transfer-balance-cap-indexation-on-1-july-2026). On these facts it is generally rational for Margaret to check her own available cap space through her myGov-linked ATO record before moving any more into pension phase, rather than assuming she's gained the full indexation amount. The general cap is the ceiling for someone starting fresh; her personal cap is what actually governs her.

Sources

Key takeaways

  • From 1 July 2026, the concessional contributions cap rose from $30,000 to $32,500, and the non-concessional cap rose from $120,000 to $130,000 (bring-forward up to $390,000 over three years).
  • The general transfer balance cap increased from $2.0 million to $2.1 million on 1 July 2026, and the Super Guarantee rate has been stable at its legislated maximum of 12% since 1 July 2025.
  • These caps index in fixed steps and don't move every year — in 2025-26 neither the concessional cap nor the transfer balance cap changed at all, so always confirm the current figure rather than assuming an increase.
  • The Age Pension does not change on 1 July — its payment rates, assets and income test thresholds, and deeming rates all index separately on 20 March and 20 September.
  • A personal transfer balance cap only benefits proportionally from a general cap increase, based on how much of the cap a member has already used — so a headline rise doesn't automatically translate into extra headroom for someone who has already commenced a pension.

Frequently asked questions

What super figures change on 1 July?

The concessional and non-concessional contribution caps, the transfer balance cap, and total super balance thresholds can all index on 1 July, though they only rise when indexation has moved enough to trigger a full step — some years nothing changes.

Does the Age Pension increase on 1 July?

No. The Age Pension's payment rates, assets and income test thresholds, and deeming rates all index on 20 March and 20 September, not 1 July. A common misconception is expecting a 'new financial year' pension boost that doesn't actually happen on that date.

If the general transfer balance cap goes up, does everyone get the full increase?

No, not if you've already commenced a pension. Your personal transfer balance cap only receives a proportional share of the increase, based on how much of your cap remains unused — someone who has already used most of their cap gets only a small fraction of the headline rise.

What should retirees check at the start of each financial year?

Whether the contribution caps have actually risen, your personal transfer balance cap headroom, any concessional cap about to expire from the five-year carry-forward window, bring-forward planning if a large contribution is intended, and general housekeeping like death-benefit nominations, power of attorney, and your will.

A note on advice. This article is general information only and doesn't account for your personal circumstances. Everyone's situation is different — before acting, it's worth talking it through with a licensed adviser who knows your full picture.