Your 2026 Super Health Check: How to get your house in order
Given we have entered a new year, it’s the perfect time to review your super account and get
planning for the months ahead. Here are some high-impact checks and strategies I’m discussing with clients to plan for pre and post 30 June.
Before 30 June 2026
1) It may be appropriate to maximise your concessional cap
The annual concessional cap is $30,000 per annum. This comprises of employer super
guarantee (SG), salary sacrifice and personal deductible contributions. If your total super
balance (TSB) on 30 June 2025 was under $500,000, you may be able to use carry forward
unused caps from the previous five years—handy if you’ve had lumpy income or realised a
capital gain this year to be able to claim a tax deduction.
2) Consider the use of non-concessional contributions (NCC) — carefully
The non-concessional cap is $120,000 per annum. Eligible members can trigger the bring forward rule to contribute up to $360,000 over three years. The age to lookout for here is 75, because once you are beyond this, you are unable to make further NCCs to super. Note: if your TSB at 30 June is at or above the general transfer balance cap (TBC)—$2.0m for 2025–26— this also prevents you from making any further NCCs.
3) Consider a downsizer contribution
If you’re 55+ and selling your home (must have owned for 10 years or more), you can add up to
$300,000 each (couples: $600,000) to super—outside the usual caps noted above—within 90
days of settlement. It counts towards your TBC later, so plan the timing. This can be powerful
when combined with non-concessional contributions – potentially allowing an individual to get up to $660,000 into super and the tax-free pension environment, see below!
4) Pension housekeeping
Check whether you are in pension or accumulation mode, I have seen a few clients of late who
are still in accumulation mode and should be in pension mode. The benefit being, a tax free
environment vs paying tax at up to 15% on earnings. On account-based pensions, check you’ll
meet the minimum drawdown by 30 June (4% under 65, 5% for 65–74, then rising with age). If
you have a retail account this is calculated and met on your behalf, but if you have a Self
Managed Super Fund (SMSF), missing the minimum risks losing tax-exempt earnings for the
year.
From 1 July 2026
5) Keep an eye on the $3m+ super tax (Division 296)
Revised draft law proposes an extra tax on realised earnings linked to balances above $3m,
with a higher rate above $10m, from 1 July 2026. It’s not law yet, but high balance members
(and SMSFs with illiquid assets) should scenario test.
6) Make the most of the $2.0m pension cap
The general TBC is $2.0m for 2025–26. If you’re starting your first retirement phase pension
after 1 July 2025, your cap is $2.0m; earlier starters may have a lower personal cap depending
on usage. Equalising balances between spouses can help both members maximise pension
phase over time.
A proactive 60day plan
Confirm: Your year to date concessional totals (including SG) and available carry forward
room.
Decide: Whether to trigger a bring forward NCC this year—or wait—to manage TSB/TBC
thresholds.
Check: Are you in pension or accumulation? Pension minimums and your July 1
cashflow needs.
Model: High balance scenarios under the proposed Division 296 settings.
Finally, speak with your financial adviser to discuss any of the above in detail.
