A number of previously announced superannuation reforms have now been legislated as part of the Government’s broader agenda to improve the fairness, sustainability, and integrity of Australia’s retirement savings system.

The reforms focus on strengthening employer compliance, reducing tax concessions for very high superannuation balances, and improving reåtirement outcomes for low-income earners.

Payday Super

Start Date

From 1 July 2026

The Government has legislated the Payday Super reforms, which will require employers to pay Superannuation Guarantee (SG) contributions at the same time employees are paid salary and wages.

The reforms also redesign the existing Superannuation Guarantee Charge (SGC) regime, including updated penalties and interest charges for late or unpaid superannuation contributions.

The Government stated that the reforms are intended to:

• reduce unpaid superannuation;
• improve transparency for employees;
• strengthen employer compliance; and
• allow workers to receive investment earnings on their superannuation contributions earlier.

The Australian Taxation Office (ATO) estimates that billions of dollars in superannuation contributions are currently paid late or remain unpaid each year, particularly affecting younger and lower-income workers.

The reforms will require many businesses to update payroll systems and payroll reporting processes ahead of commencement on 1 July 2026.

Better Targeted Superannuation Concessions (Division 296)

Start Date

From the 2026–27 income year

The Government has legislated changes to reduce superannuation tax concessions available to individuals with very large superannuation balances.

Under the new Division 296 rules:

• earnings relating to superannuation balances below $3 million will continue to be taxed at 15%;
• earnings attributable to balances between $3 million and $10 million will be subject to an additional 15% tax, resulting in an effective rate of 30%; and
• earnings relating to balances above $10 million will attract a further 10% tax, resulting in an effective rate of 40%.

The balance thresholds will be indexed annually in line with the Consumer Price Index (CPI).

The Government stated that the reforms are intended to make superannuation tax concessions more sustainable and better targeted toward retirement savings rather than wealth accumulation.

The proposed changes have generated significant industry debate, particularly regarding the taxation of unrealised gains and the potential impact on self-managed superannuation funds (SMSFs) holding illiquid assets such as property and private investments.

Low Income Superannuation Tax Offset (LISTO)

Start Date

From the 2027–28 income year

The Government has also legislated increases to the Low Income Superannuation Tax Offset (LISTO).

From the 2027–28 income year:

• the LISTO eligibility threshold will increase from $37,000 to $45,000; and
• the maximum offset amount will increase from $500 to $810, reflecting the increase in the Superannuation Guarantee rate to 12%.

The reforms are intended to ensure low-income earners do not pay more tax on superannuation contributions than they would on ordinary employment income.

The increase is expected to particularly benefit part-time workers, lower-income households, and many female employees with interrupted work patterns.

Access to Superannuation for Survivors of Child Sexual Abuse

The Government also confirmed that legislation remains before Parliament to allow survivors of child sexual abuse offences to access compensation amounts from a perpetrator’s superannuation where compensation orders remain unpaid.

The proposed framework would allow eligible victims and survivors to seek the release of certain superannuation amounts to satisfy unpaid compensation liabilities arising from criminal or civil proceedings.

The reforms are intended to strengthen protections and improve access to justice for survivors.

Other Announcements Prior to Budget Night

Ahead of the 2026–27 Federal Budget, the Government also confirmed several additional policy measures relevant to taxation and superannuation.

These include:

• proposed changes to the Fringe Benefits Tax (FBT) exemption for electric vehicles, transitioning to a permanent 25% FBT discount model; and
• the Australian Fuel Security and Resilience Package, providing more than $10 billion to strengthen Australia’s fuel security, establish a permanent government-owned fuel reserve, and increase minimum fuel stockholding requirements.

The Government stated that these measures form part of its broader strategy to address inflation, global economic uncertainty, and productivity challenges while supporting long-term economic resilience.

2026–27 Federal Budget – Protecting Investors and Strengthening the Superannuation System

As part of the 2026–27 Federal Budget, the Government announced additional funding to strengthen governance, supervision, and enforcement relating to managed investment schemes and improve the integrity of the superannuation system.

The Government will provide:

• $17.8 million over four years from 2026–27; and
• ongoing annual funding of $1.4 million.

The funding package includes:

• $10.3 million in 2026–27 for ASIC to improve its use of data analytics and technology in supervising managed investment schemes;
• $7.6 million over four years, together with ongoing annual funding, for ASIC, the Office of the Australian Auditing and Assurance Standards Board, and Treasury to strengthen governance and regulatory frameworks; and
• public consultation on expanded data collection powers relating to managed investment schemes.

The reforms follow increasing regulatory concerns regarding governance failures, conflicts of interest, and investor losses within parts of the managed investment sector.

The Government also confirmed that it is consulting publicly on options to strengthen the superannuation performance test to ensure it remains effective while avoiding unintended barriers to long-term investment.

Industry stakeholders have argued that the current performance benchmarking framework may discourage superannuation funds from investing in sectors such as infrastructure, venture capital, renewable energy, and housing due to concerns regarding short-term underperformance against benchmark indices.

The Government stated that any reforms will seek to balance strong consumer protections and accountability with the need to support productive long-term investment and improved retirement outcomes for Australians.