Key Takeaways

  • The 2025–26 financial year brings significant superannuation rule changes — including rising contribution caps and the incoming Division 296 tax — making a thorough super review more timely than usual.
  • Reviewing your fund, investment strategy, and contributions before 30 June 2026 could make a material difference to your retirement outcome.
  • Many Australians miss out on carry-forward concessional contributions, the government co-contribution, and spouse contributions through simple unawareness.
  • Binding death benefit nominations and insurance coverage inside super are often overlooked but can have major consequences.
  • A short, structured annual super check is one of the most valuable financial maintenance tasks an Australian can complete.

Why This Year's Review Is More Important Than Usual

Every June is a good time to review super before the financial year ends. But in 2026, important rule changes on 1 July raise the stakes. The concessional cap rises from $30,000 to $32,500. The non-concessional cap increases from $120,000 to $130,000. The Transfer Balance Cap moves from $2.0 million to $2.1 million. And the Division 296 tax — passed on 10 March 2026 — begins applying to earnings from the 2026–27 year onward.

1. Check Your Balance and Consolidate Accounts

Log into myGov and link your ATO account to see all super accounts in your name. Lost accounts charge fees year after year without benefit. Consolidating into a single well-chosen fund — after comparing fees, performance, and insurance coverage — can save meaningfully over time. Before transferring, confirm whether you hold insurance cover inside a current fund; transferring may cancel it, and obtaining equivalent cover again may require medical assessment.

2. Review Your Investment Option

Most Australians who joined through an employer default sit in a balanced or lifecycle option — which may not be the best fit. A 35-year-old with 30 years until retirement may benefit from more growth exposure; a 58-year-old approaching retirement may want a more conservative mix. Compare performance over three, five, and ten years to avoid decisions driven by recent short-term results.

3. Maximise Concessional Contributions Before 30 June

For 2025–26, the concessional cap is $30,000, covering employer SG contributions plus salary sacrifice or personal deductible contributions. If you have unused cap space, you may still be able to make a personal concessional contribution and claim a tax deduction in your 2025–26 return — but you must lodge a "Notice of intent to claim a deduction" with your super fund before lodging your tax return.

4. Check Your Carry-Forward Concessional Entitlement

If your total super balance was below $500,000 at 30 June 2025, you may be able to access unused concessional cap space from the previous five years. Your available carry-forward amount appears in myGov. This is one of the most underutilised strategies in the system, particularly for those who had career breaks or periods of lower income.

5. Consider the Government Co-Contribution

If your total income for 2025–26 is below $37,000, you may be entitled to a co-contribution of up to $500 when you make a personal after-tax contribution before 30 June. Payment is automatic after lodgement of your tax return.

6. Review Your Insurance Inside Super

Most fund members hold life insurance and total and permanent disability cover by default. Review coverage against actual obligations — mortgage, dependants, income replacement. If inadequate, you may be able to apply for more; if over-insured, reducing cover saves premiums. Note: if you are under 25 or your balance is below $6,000, your fund may have automatically opted you out of insurance.

7. Update Your Beneficiary Nominations

Superannuation does not automatically form part of your estate. The fund trustee distributes your super according to trust law and any death benefit nomination on file — not your will. Most binding nominations expire after three years. Check when yours was last signed, and update it if circumstances have changed. Some funds offer non-lapsing binding nominations.

8. Consider Spouse Contributions and Contribution Splitting

Spouse contributions allow the higher earner to contribute after-tax money to their partner's account, with a tax offset of up to $540 for the contributor, subject to income thresholds. Contribution splitting allows a member to redirect up to 85% of concessional contributions to their spouse each year. Both help equalise balances and improve retirement income planning.

9. Assess Your Transfer Balance Cap Position

From 1 July 2026, the Transfer Balance Cap rises to $2.1 million. Any super above your personal cap when you commence a retirement income stream must stay in accumulation phase (taxed at 15% on earnings) or be withdrawn.

10. Review Division 296 Exposure for Large Balances

If your total super balance exceeds or is approaching $3 million, Division 296 tax — effective from 1 July 2026 — warrants immediate attention. An additional 15% applies to earnings above $3 million and 25% above $10 million, on realised earnings. A CGT cost base reset to 30 June 2026 market value is available for super assets. Seek advice from a financial adviser and tax professional before year-end.