New financial year, fresh start: your 2026-27 game plan

The new financial year has landed, and this one is bigger than most. Between the May budget, payday super and new ID rules, the 2026-27 rulebook looks genuinely different to last year's. Here's what changed on 1 July, what's coming, and what to do about it now, while the year is young.

For your household

You're getting a tax cut. The lowest marginal rate drops from 16 to 15%, worth $268 this year for anyone earning over $45,000 and double that from next July, with a further cut to 14% already legislated for 2027. A new $1,000 instant work-related deduction also applies for 2026-27, no receipts needed. If your deductions usually top $1,000, keep the receipts anyway: you can still claim the real amount.

Wages and leave are up. The minimum wage rose to $26.44 an hour (check your award rate here), and Paid Parental Leave extends to 26 weeks for new parents.

You can put more into super. The concessional cap rises to $32,500, the non-concessional cap to $130,000, and the bring-forward cap to $390,000. One trap: employer contributions count toward the concessional cap, so check your payslips before setting your salary sacrifice amount. Starting in July instead of scrambling in June is the single easiest way to use the extra room. Morningstar has a good rundown of the new caps.

Weighing up private health cover? The Medicare levy surcharge thresholds have risen, so singles can now earn up to $105,000 before the surcharge applies. If you took out hospital cover purely to dodge the surcharge, the maths has changed and it's worth rerunning.

Cost of living still biting? July is the natural month to reset the household budget while the new pay rates and tax settings flow through. Moneysmart's free budget planner is the best tool going, and it's government-run, so no upsell.

Small wins worth grabbing. A few quieter changes add up: PBS scripts are now capped at $25, Family Tax Benefit rates have risen per child per year, anyone with a HELP debt check you are receiving a 20% cut, and energy rebates for concession cardholders are now automatic rather than application-based. None of these need an accountant. They just need five minutes to check you're getting them.

For your business

Payday super is here, and it's the big one. From 1 July, super must be paid at the same time as wages, not quarterly, and it has to land in employees' funds within 7 business days of payday. Penalties apply automatically if it doesn't. On the upside, paying super sooner means it compounds for longer. On top of that, the Small Business Super Clearing House has closed permanently, so if you were using it, you need a new payment channel through your payroll software now, not at BAS time. This is the first thing to check this month.

The $20,000 instant asset write-off is set to become permanent. The budget locks it in from 1 July 2026 for businesses turning over under $10 million, so you can plan equipment purchases around it rather than gambling on another last-minute extension. One caveat: it's announced but not yet law, so talk to us before committing to big spends on the strength of it.

Loss carry back is returning. Companies turning over under $1 billion that make a loss will be able to claim back tax paid in the previous two years. If 2025-26 was a rough year for your business, this could mean real cash back, and it changes how we think about your tax planning.

New ID checks apply to us, and maybe to you. New AML/CTF laws now cover accountants, lawyers and real estate agents, which is why we'll occasionally ask for ID and ownership details, just like your bank does. If your own business is captured (real estate, conveyancing, precious metals, trust and company services), enrolment with AUSTRAC closes 29 July. If you're not sure whether you're caught, ask us this month.

For investors

The negative gearing and CGT changes are the ones to plan around. Established rental properties bought after 12 May 2026 can no longer be negatively geared against your salary, though properties bought before then are grandfathered. Bigger still: the 50% CGT discount is replaced with indexation and a 30% minimum rate from 1 July 2027. That makes this financial year the window to review what you hold, what's grandfathered, and whether your structures still make sense. This is not a decision to make from a headline. It's a modelling exercise, and it's exactly what we do.

Big super balances face the new tax. Earnings on balances above $3 million are set to be taxed at 30%, rising again for balances above $10 million. Separately, the transfer balance cap has risen to $2.1 million, so if retirement is close, the timing of that first pension now matters. Either way, the strategy conversation should happen this year, not at tax time.

The budget is still moving

Since budget night, the Government has already softened or reshaped several of the headline measures. Four changes worth knowing about:

Testamentary trusts get a reprieve. The 30% minimum trust tax was originally going to catch new testamentary trusts, the most common estate planning structure in wills. The Government has now announced it will exempt all testamentary trusts established for genuine testamentary purposes, limited to income from assets of the deceased estate. If you rewrote or paused your estate planning after the budget, it's worth revisiting: the trade-off you were weighing may have just disappeared.

Start-up investors get a carve-out. A proposed Innovative Business CGT Concession would preserve a 50% CGT discount for early-stage investors, founders and employee share scheme participants in innovative start-ups. It's at consultation stage, but if you hold start-up equity or options, this matters to how the 2027 CGT changes land for you.

Small business owners get a bigger door. The turnover threshold for the 50% active asset reduction under the small business CGT concessions is set to rise from $2 million to $10 million from 1 July 2027. If you're thinking about selling your business in the next few years, this change, alongside the wider CGT reforms, makes the timing question genuinely complex. The other three concessions keep the $2 million threshold, and the $6 million net asset value test remains as an alternative way in.

SMSF property borrowing is ending. Following negotiations with the Greens, SMSFs will lose the ability to borrow to buy residential property (the limited recourse borrowing arrangement). Existing arrangements look set to be grandfathered. If an SMSF property purchase was on your radar, talk to us before doing anything.

Remember the details will likely keep shifting but that's not a reason to wait and see. It's a reason to plan with someone, be prepared and make changes as necessary.

Your July to-do list

1. Employers: check your super payments work under the new rules.
Super is now due every pay cycle, not quarterly, and it must arrive in each employee's fund within 7 business days of payday. Penalties apply automatically when it's late. Confirm your payroll software is paying super each cycle, and check how long your provider takes to actually deliver the money. If you were using the ATO's free clearing house, it closed on 30 June and you'll need a replacement through your payroll software or super fund.

2. Employees: set up salary sacrifice now, not in June.
The concessional super cap has risen to $32,500 this year. Spreading extra contributions across 12 months is easier on your cash flow than a last-minute June top-up, and it puts your money into super sooner. Just remember your employer's contributions count toward that cap, so check your payslip before locking in an amount.

3. Everyone: check your first July payslip, then redo the household budget.
Your take-home pay changed on 1 July: the tax cut, the minimum wage rise and the new super settings all flow through this month. Look at what's actually landing in your account and rebuild the budget on the real numbers. Moneysmart's free budget planner does the heavy lifting.

4. Investors: book a review if you hold property, shares or an SMSF.
The negative gearing restrictions are live, the CGT discount is replaced from 1 July 2027, and SMSF borrowing for residential property is on the way out. Which rules catch you depends on what you bought and when, so the first step is mapping what's grandfathered and what isn't. This year is the planning window.

5. Business owners: two dates to check this month.
First, if your business is captured by the new AML/CTF rules (real estate, conveyancing, precious metals, trust or company services), AUSTRAC enrolment closes 29 July. Second, if selling your business is anywhere in your five-year plan, the small business CGT concession changes make timing genuinely complex, and that conversation should start now, not the year you sell.

A strong financial year is built in its first few months. If any of these changes touch you, get in early and book an obligation-free chat. Thirty minutes now can set you up for a successful, stress-free year.

General information only. This article does not constitute personal financial or tax advice. Please contact Ledgersmith for advice tailored to your circumstances.