Key financial changes coming in 2026: What Australians should prepare for

John Bartle
9 hours ago
3 min read

Australians will see a series of practical, household-level financial changes in 2026. While none are dramatic in isolation, together they influence cash flow, superannuation outcomes, retirement planning and long-term financial decisions.

Rather than reacting to a single reform, 2026 is shaping up as a year where incremental changes add up, making it a sensible time to review existing strategies and assumptions.

Below is a clear overview of the confirmed changes worth understanding.

Personal income tax cuts continue

Further personal income tax cuts are legislated to commence from 1 July 2026, building on earlier reforms.

The tax rate on income between $18,201 and $45,000 will reduce from 16% to 15%
From 1 July 2027, this rate is scheduled to reduce again to 14%
In combination with earlier changes, the average taxpayer is expected to be around $2,190 better off per year from 2027–28 onwards

For many Australians, this improves take-home pay and creates flexibility to strengthen savings, reduce debt or review super contribution strategies.

Source: Australian Government Budget papers – https://budget.gov.au

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Superannuation payment rules are changing

From 1 July 2026, the way Superannuation Guarantee (SG) contributions are paid will change.

Employers must pay SG each pay cycle, rather than quarterly
Contributions must reach the employee’s super fund within seven days of payday
The ATO Small Business Superannuation Clearing House will close from this date

For employees, this means super contributions are invested earlier and more frequently, improving long-term compounding. For employers, it requires adjustments to payroll processes and cash-flow management.

Source: Australian Taxation Office – https://www.ato.gov.au

What is not changing: the Super Guarantee rate

The Super Guarantee rate reached 12% on 1 July 2025, completing the long-planned increase.

No further increases are currently scheduled

While the rate itself is stable, the higher contribution level continues to support long-term retirement outcomes, particularly for workers still building their balances.

Source: Australian Taxation Office – https://www.ato.gov.au

Higher tax on very large super balances

The Better Targeted Superannuation Concessions, commonly referred to as Division 296 tax, remain an important consideration for higher-balance individuals.

Applies to people with total super balances above $3 million
Additional tax applies to earnings attributable to balances above this threshold
Assessment will be based on total super balance at 30 June 2027, with the tax applying from 1 July 2026

For those affected, this may change how superannuation fits alongside other investment, retirement income and estate planning strategies.

Source: Australian Government Budget papers – https://budget.gov.au

Age Pension thresholds continue to adjust

There are no major structural Age Pension reforms scheduled for 2026, but indexation remains relevant.

Income and asset thresholds update three times each year
Upper (disqualifying) thresholds increase on 20 March and 20 September
Lower thresholds increase annually on 1 July

These adjustments can influence eligibility for a full or part Age Pension, particularly for retirees whose assets or income sit close to the thresholds.

Source: Services Australia – https://www.servicesaustralia.gov.au

Lower PBS medicine costs from January 2026

From 1 January 2026, the maximum co-payment for medicines listed on the Pharmaceutical Benefits Scheme (PBS) will reduce for general (non-concession) customers.

Maximum co-payment falls from $31.60 to $25.00 per script
This is the lowest PBS co-payment in 20 years
The concessional co-payment remains frozen at $7.70

While individually modest, these changes can reduce ongoing health costs for households managing regular prescription needs.

Source: Services Australia – https://www.servicesaustralia.gov.au/pharmaceutical-benefits-scheme-pbs

What this means in practice

Taken together, the 2026 changes reinforce the importance of regular financial reviews. Tax settings, super contribution timing, retirement income planning and health-related costs are becoming more interconnected.

Understanding how these changes apply to your circumstances can help ensure existing strategies remain appropriate and aligned with your long-term goals.

At Aspire2Wealth, these updates are often used as a prompt to step back, reassess, and make considered adjustments rather than reactive decisions.

Sources:

Australian Government Budget papers – https://budget.gov.au
Australian Taxation Office – https://www.ato.gov.au
Services Australia (Age Pension) – https://www.servicesaustralia.gov.au
Services Australia (PBS) – https://www.servicesaustralia.gov.au/pharmaceutical-benefits-scheme-pbs

Aspire2 Wealth Advisers Pty Ltd ABN 42 125 897 903 is an authorised representative and credit representative of Charter Financial Planning Limited ABN 35 002 976 294, AFSL and Australian Credit Licence No. 234665.

This website contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.