Key money changes for the 2026-27 financial year

The new financial year has brought a raft of changes to wages, tax, super and household costs. Understanding what has changed can help you make informed financial decisions during the year ahead.  

Here are the key changes now in effect, plus another major one arriving in October 2026. 

Your hip pocket  

Default electricity prices fall by up to 10.7% 

The Australian Energy Regulator (AER) cut Default Market Offer (DMO) prices across New South Wales, South East Queensland and South Australia from 1 July. 

Residential prices under the DMO consumer protection, which is higher than some market offers, have fallen 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. 

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 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  

The new $3 million super tax kicks in 

The new $3 million super tax, also known as the Division 296 tax, took effect on 1 July.

Earnings on the portion of a super balance above $3 million will be taxed at 30%, up from 15%. 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 – increased from $30,000 to $32,500.
  

• After-tax (non-concessional) contribution cap – increased from $120,000 to $130,000. 

• Transfer balance cap – increased 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 rose 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. 

Payday super begins  

The big change that began on 1 July is payday super. It will see employer super contributions, generally 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.  

Previously, employer contributions could be made quarterly. So it could be as much as three months before your retirement savings were invested and earning compounding returns. This delay could take a toll on retirement balances over time.  

By aligning contributions more closely 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.  

Your tax  

16% tax rate falls to 15% 

The 16% tax rate, which applied to incomes between $18,201 and $45,000, dropped to 15% on 1 July.  

This works out to a tax saving of up to $268 a year. More savings lie over the horizon, with the rate due to fall to 14% from July 2027.

$1,000 instant deduction introduced  

A new $1,000 instant tax deduction now applies to the 2026–27 income year. 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 says the measure will save time for 6.2 million workers, or 42% of taxpayers, delivering an average tax saving of $205.  

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 pay  

Minimum weekly wage rises above $1,000 for the first time  

Close to 3 million Australian workers saw their pay increase from the first full pay period starting on or after 1 July.  

The Fair Work Commission delivered a 4.75% pay rise to 2.7 million workers on award wages, while the lowest-paid workers received a larger 6.0% increase. 

That pushed the national minimum weekly wage above the $1,000 barrier for the first time, lifting it to $1,004.90.