Key money changes coming from July 2026
It wouldn't be a new financial year if we didn't see a raft of changes to our money system! Some of us will benefit from the changes. Others will be challenged. The common thread is that now is the time to start planning ahead.
Here are the key changes we can expect to see from July 2026.
Your pay
Minimum weekly wage to rise above $1,000 for the first time
Close to 3 million Aussie workers will pocket a pay rise from 1 July.
The Fair Work Commission has delivered a 4.75% pay rise to 2.7 million workers on award wages, while the lowest-paid workers will receive a larger 6.0% increase.
That means the national minimum weekly wage will break through the $1,000 barrier for the first time, rising to $1,004.90.
Your tax
16% tax rate falls to 15%
The 16% tax rate, which currently applies to incomes between $18,201 and $45,000, will drop to 15%.
While a tax cut is always welcome, this one only works out to a tax saving of $268 annually. Still, it's better than a tax hike, and more savings lie over the horizon, with the 15% rate due to fall to 14% from mid-2027.
$1,000 instant deduction
The 2026-27 tax year will see the introduction of a $1,000 instant tax deduction. It will first be available when you lodge your 2027 tax return, covering income earned between 1 July 2026 and 30 June 2027.
It means workers won't have to stump up receipts to score work-related tax deductions up to $1,000. The federal government is selling the instant deduction as a time saver, saying 6.2 million workers, or 42% of taxpayers, will land a tax saving averaging $205 next financial year.
But here's the catch. Tax Office data shows the average work-related expense claim was $2,739 in 2022-23. That's almost three times the new instant deduction.
That makes it worth sticking with the habit of collecting work-related receipts. You can claim more if your work-related expenses total over $1,000. But you won't know - or be able to claim them - if you don't have the paperwork as evidence.
Your hip pocket
Electricity bills could drop 10.7% for east coast households
The Australian Energy Regulator (AER) has cut the default market offer (DMO) across New South Wales, South East Queensland and South Australia, effective 1 July 2026.
It could see power prices fall by up to 7.7% in New South Wales, 10.7% in South East Queensland and 1.1% in South Australia.
That has the potential to put up to an extra $229 in your hip pocket depending on where you live. However, as AER Chair, Clare Savage, points out, it still makes a lot of sense to shop around for the best deal.
Solar Sharer Offer launches
The Solar Sharer Offer (SSO) will be available from 1 July 2026 to households in New South Wales, South East Queensland and South Australia.
It's designed to let households in these areas benefit from the massive volume of rooftop solar energy being pumped back into the grid.
Under the SSO, households with smart meters in New South Wales, South East Queensland and South Australia will be able to opt into a plan that provides three hours of free power in the middle of the day, starting 1 July.
By shifting energy-hungry activities, such as running a dishwasher, clothes dryer, pool pump or EV charger, to the free period, households could save as much as $1,100 on annual power bills.
Fuel excise cut set to end
Back in March, the Labor government cut the fuel excise in response to soaring fuel prices linked to conflict in the Middle East.
The original relief was due to end on 30 June 2026. Instead, the government has extended support for another month, with a 16 cents-per-litre cut to the fuel excise applying from 1 July to 2 August 2026.
The extension is expected to save motorists around $11 on a 65-litre tank of petrol or diesel. It is a smaller discount than the initial three-month cut, signalling a gradual return to the normal fuel excise rate rather than an abrupt jump at the bowser.
Card surcharges scrapped
October will see the banning of surcharge fees that apply to purchases made with a debit or credit card.
Surcharges currently apply to the Visa, Mastercard and EFTPOS networks, and while they may only add a few cents to each purchase, collectively they cost consumers $1.6 billion annually, or $80 a year for each card-using Aussie.
As surcharges go towards funding credit card rewards, the new regime may rattle the rewards landscape. So it can be worth keeping an eye on whether any reward scheme you're part of continues to offer value.
The upside is that debit card customers will no longer be helping to subsidise credit card reward programs.
Your super
Payday super starts
The big change starting 1 July 2026 is payday super. It will see employer super contributions, worth 12% of your base wage or salary, paid into your super account at the same time you receive your wage or salary.
This may not sound like such a big deal. And it can be easy to assume this has been happening all along as the boss's super contributions may already appear on your regular pay slip. However, that doesn't mean the contributions have been deposited into your super fund.
Right now, employer contributions can be made quarterly. So it can be as much as three months before your retirement savings are invested to earn compounding returns. This delay can take a toll on retirement balances over time.
By aligning contributions with wages, your super starts earning returns sooner. It's estimated this will leave the average 25-year-old $6,000 better off in retirement.
Payday super is also expected to reduce the problem of unpaid super. Most employers do the right thing, but some businesses delay paying employee super for as long as possible, sometimes reaching the point where they owe so much in super that they cannot foot the bill at all.
The Super Members Council says around one in four workers miss out on super each year, with unpaid super totalling about $5.7 billion in 2022-23. That makes payday super a big step in the right direction.
The new $3 million super tax kicks in
The new $3 million super tax - also known as the Division 296 tax - will take effect from 1 July 2026.
Earnings on the portion of a super balance above $3 million will be taxed at 30%, up from 15% at present. Earnings on the portion above $10 million will be taxed at 40%.
Only realised gains will be taxed and both the $3 million and $10 million thresholds will be indexed for CPI movements.
It's worth noting that just 0.5% of super balances top the $3 million mark.Even fewer Australians - about 0.1%, or 8,000 people - have super in excess of $10 million.
Other super changes at a glance
Each year sees several key super figures adjusted. Here are the latest updates for the 2026-27 financial year:
- Before-tax (concessional) contribution cap - increasing from $30,000 to $32,500.
- After-tax (non-concessional) contribution cap - increasing from $120,000 to $130,000.
- Transfer balance cap - increasing from $2 million to $2.1 million. This is the lifetime limit on how much you can transfer from the accumulation phase of super into tax-free retirement pensions.
- Super co-contribution - the lower income limit for government co-contributions will rise from $47,488 to $49,293. A partial co-contribution may still be available if you earn up to $64,293, up from $62,488.
Frequently Asked Questions about this Article…
From 1 July 2026 the Fair Work Commission has awarded a 4.75% pay rise for about 2.7 million award‑paid workers, with the lowest‑paid workers getting a larger 6.0% increase. That lifts the national minimum weekly wage above $1,000 for the first time to $1,004.90, meaning close to 3 million workers will see higher pay.
The 16% tax bracket for incomes between $18,201 and $45,000 falls to 15% from July 2026, which the article estimates will save the average affected taxpayer about $268 a year. It’s a modest boost to take‑home pay, and that rate is scheduled to fall again to 14% from mid‑2027.
From the 2026–27 income year you can use a $1,000 instant deduction when you lodge your 2027 tax return, meaning you won’t need receipts for work‑related claims up to $1,000. The government estimates around 6.2 million workers will save an average $205 next year. However, Tax Office data shows the average work‑related claim was $2,739 in 2022–23, so it’s still worth keeping receipts if your expenses exceed $1,000 to claim the larger amount.
The Australian Energy Regulator has cut the default market offer (DMO) for NSW, South East Queensland and South Australia effective 1 July 2026, which could reduce power prices by up to 7.7% in NSW, 10.7% in SE Queensland and 1.1% in SA — potentially putting up to $229 back in your pocket depending on where you live. Also from 1 July households with smart meters in those states can opt into the Solar Sharer Offer, which provides three hours of free midday power; shifting heavy appliance use into that window could save households as much as $1,100 a year.
Yes — the halving of the fuel excise introduced in March is due to end on 1 July 2026. The excise previously cut fuel prices by 26.3 cents per litre. The article says it’s unclear whether the relief will be extended, so motorists should be prepared for the possibility of fuel prices rising again if the cut is not renewed.
Surcharge fees on debit and credit card purchases (Visa, Mastercard and EFTPOS networks) are set to be banned from October 2026. Consumers currently pay about $1.6 billion in surcharges annually — roughly $80 per card user — so removing these fees should save everyday purchases a few cents each and reduce annual costs. The change may also shake up credit card rewards, since surcharges have been used to help fund reward programs, so keep an eye on whether your card’s rewards remain good value.
Payday super requires employers to deposit super contributions (12% of base wage or salary) into your super account at the same time you receive your wage or salary, rather than in quarterly batches. That means your super gets invested sooner and starts compounding earlier — an estimated $6,000 extra for the average 25‑year‑old by retirement — and it should help reduce unpaid or late super entitlements.
From 1 July 2026 a Division 296 tax applies so investment earnings on the portion of a super balance above $3 million will be taxed at 30% (up from 15%), and earnings above $10 million will be taxed at 40%; only realised gains are taxed and the $3 million and $10 million thresholds will be CPI‑indexed. The article notes these thresholds affect a very small share of members. Other changes for 2026–27 include a higher concessional (pre‑tax) contribution cap rising to $32,500, a non‑concessional (after‑tax) cap of $130,000, a transfer balance cap increasing to $2.1 million, and raised income limits for the government super co‑contribution.
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