A month into the new financial year, the 2026-27 settings are all live. Here is the one page version to plan around.
Income tax
The rate on taxable income between $18,201 and $45,000 dropped from 16 to 15 per cent on 1 July, worth up to $268 a year, with a further cut to 14 per cent legislated for July 2027. And from this year, the $1,000 instant work related deduction replaces the old $300 no receipt threshold: employees can claim up to $1,000 of work related expenses without receipts. You will claim it in the return you lodge in 2027, and anyone with more than $1,000 of genuine expenses should keep records and claim the real number as usual.
Superannuation
- Non concessional cap: up from $120,000 to $130,000 a year, which also lifts the bring forward maximum for those eligible.
- Transfer balance cap: indexed up from $2 million to $2.1 million, setting how much can move into a tax free retirement pension.
- Super guarantee: steady at 12 per cent, now paid every payday rather than quarterly.
- Division 296: the extra tax on earnings attributable to balances above $3 million applies from this year, on the revised realised earnings basis.
Business odds and ends
Luxury car tax thresholds moved up, with the fuel efficient vehicle threshold at $91,661. The permanent $20,000 instant asset write off remains announced but not yet legislated, so watch that space before relying on it for 2026-27 purchases.
What to do with all this
The contribution cap changes reward early planning rather than a June scramble: salary sacrifice arrangements, spouse contributions and bring forward strategies all work better with eleven months of runway than one. If your super strategy was built on last year's caps, it is due a refresh.