Have you noticed a little extra in your take-home pay this month?
From 1 July 2026, a new financial year brought a handful of changes that affect almost every Australian worker, investor, and super fund member. None of it requires you to do anything, but understanding it helps you make the most of it.
Your Tax Cut, Explained
The tax rate on income between $18,201 and $45,000 has dropped from 16% to 15%. It’s a small shift, but it flows straight through to your pay via updated PAYG withholding.
For anyone earning above $45,000, that’s worth up to $268 a year. It’s already being applied automatically, so there’s nothing you need to lodge or claim.
More Room in Super
If you’ve been thinking about topping up your super, there’s now more space to do it.
• The concessional (before-tax) contributions cap has risen to $32,500
• The non-concessional (after-tax) cap has risen to $130,000
• The bring-forward limit is now $390,000 over three years, for those who are eligible
Whether these increases help you will depend on your total super balance and your personal circumstances, so it’s worth a conversation before making a large contribution.
New Rules for Property Investors
If you earn income from a rental property, including through short-term letting platforms or renting out a room, the ATO has issued fresh guidance clarifying what counts as assessable income and what you can and can’t deduct.
This includes clearer rules on apportioning deductions when a property is used for both private and income-producing purposes. If you own an investment property or holiday home, it’s worth checking your record-keeping lines up with the updated guidance before your next return.
What Hasn’t Changed (Yet)
You may have heard about a proposed $1,000 standard deduction for work-related expenses. It’s real, but it doesn’t apply to the return you’re lodging this year.
If passed, it will apply from the 2026–27 income year, meaning you’d first see the benefit on returns lodged from July 2027. For now, keep claiming your actual work-related expenses as usual.
Want to Make the Most of It?
A few small changes can add up, but only if they’re applied in the right order for your situation. If you’d like to talk through what these changes mean for your take-home pay, your super, or your investment property, reach out to our office.
To book an appointment, contact our office.