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Following today's release of the latest average wages data for the December 2025 quarter, FirstTech have calculated the super rates and thresholds for 2026-27.

The ATO is expected to confirm the 2026-27 super rates and thresholds in March 2026.

Key points:

• Concessional and non-concessional contributions caps increase to $32,500 and $130,000
• Non-concessional cap (inc. bring forward rule) - TSB thresholds increase
• General transfer balance cap increases from $2.0m to $2.1m
• Maximum contribution base increases from $250,000 ($62,500 per quarter) to $270,830

Access our 'Super rates & thresholds for 2026-27' for super contributions, super benefits and employment termination payment thresholds.

The Government has announced that social security deeming rates will increase from 20 March 2026.

This is the second increase in deeming rates since 2020, as rates have been frozen at historically low levels.

From 20 March 2026, deeming rates will increase by 0.5% to:

-  Lower deeming rate:  1.25% p.a. (previously 0.75% p.a.)

-  Upper deeming rate:  3.25% p.a. (previously 2.75% p.a.)

The lower deeming rate threshold is $64,200 for singles and $106,200 for couples combined.

The Government has today (11 February 2026) introduced a new Bill into Federal Parliament relating to Division 296 tax, which seeks to tax the proportion of a member’s super earnings attributable to their total super balance (TSB) over $3m at higher rates.  The Bill introduces significant changes to the original proposal.

The changes included in the Bill closely reflect those included in draft exposure legislation released on 19 December 2025, including: 

• New two-tier tax on large super balances:  Applying an additional 15% tax on earnings attributable to a TSB between $3 million and $10 million, and an additional 25% on earnings attributable to TSB above $10 million.

• Indexation: Both the $3 million and the new $10 million thresholds will be indexed to the Consumer Price Index in increments of $150,000 and $500,000 respectively.

• Realised earnings approach:  In most cases, tax will be calculated on a fund’s realised (taxable) earnings, attributed to members with high balances, aligning with existing income tax concepts.

• Integrity measures:  Subject to transitional provisions, the Bill includes integrity measures that will prevent members avoiding Division 296 tax on realised gains by withdrawing to reduce their TSB to below $3 million by the end of a year. 

• Deferred start date:  The reforms will now commence from 1 July 2026 instead of 1 July 2025.

The Bill also includes important transitional provisions to ensure Division 296 tax will only apply to capital gains accrued on assets post the intended start date of the legislation on 1 July 2026.