Defence and veteran support measures
This year’s Budget included significant long-term investment in Defence capability, workforce development and support services for veterans and their families.
The Government announced additional funding across areas including Defence capability, skills and training, veteran health services and continued implementation of recommendations from the Royal Commission into Defence and Veteran Suicide.
While these measures do not directly change super rules, they may be relevant for current and former ADF members, Defence personnel and Australians working across Defence-related industries and services.
What could this mean for APS employees?
The Budget also included continued investment across parts of the Australian Public Service, with agencies including the ATO and Services Australia expected to benefit from additional staffing and capability investment.
At the same time, some areas including the National Disability Insurance Agency (NDIA) are expected to face tighter spending controls and workforce changes as part of broader efforts to manage long-term government spending.
For many CSC members working across the APS, the Budget reinforces the Government’s continued focus on building permanent public sector capability while reducing reliance on contractors and consultants.
Contribution caps increasing from 1 July 2026
While not a direct Budget measure, several super contribution caps are increasing from 1 July 2026 due to automatic indexation.
These changes may create additional opportunities for some Australians to contribute more to super in a tax-effective way.
Concessional contribution cap
The concessional contribution cap will increase from:
- $30,000 to $32,500 per financial year
Concessional contributions generally include:
- employer super contributions
- salary sacrifice contributions
- personal contributions claimed as a tax deduction.
Non-concessional contribution cap
The non-concessional contribution cap will increase from:
- $120,000 to $130,000 per financial year
These are generally personal after-tax contributions you make to your super.
Bring-forward contribution rule
The maximum bring-forward amount will increase from:
This may allow eligible Australians under age 75 to contribute up to three years’ worth of non-concessional contributions in a single financial year, depending on their total super balance.
Transfer balance cap
The transfer balance cap will also increase from:
- $2 million to $2.1 million
This cap limits the amount that can be transferred into a tax-free retirement income stream, such as an account-based pension.
Increased focus on unpaid super and member protections
The Budget also included additional funding for regulators including ASIC and the ATO to strengthen oversight, compliance and consumer protections across the financial services and superannuation sectors.
This aims to help ensure employers are paying the correct super amounts on time and improve protection for workers.
You can help keep track of your super by regularly checking your account and contributions through CSC Navigator.
The Government also announced further consultation on proposed changes to the superannuation performance test.
The performance test is designed to help ensure super products are delivering value for members. The proposed changes aim to reduce unnecessary barriers to investment while continuing to support strong member outcomes and protections.
Buying your first home? FHSS may be worth exploring
Housing affordability remained a major focus in this year’s Federal Budget conversation.
While there were no major changes announced to the First Home Super Saver (FHSS) scheme, it may still be a useful option for eligible first home buyers looking to save through super in a tax-effective way.
The FHSS scheme allows eligible Australians to make voluntary super contributions and later withdraw some of those contributions, along with associated earnings, to help purchase a first home.
Depending on your circumstances, this may help you:
- build savings sooner
- benefit from the lower tax environment within super
- create a more structured savings approach.
Eligibility rules, contribution limits and withdrawal conditions apply.
Other changes coming from 1 July 2026
Several previously announced super measures are also scheduled to begin from 1 July 2026.
Payday super
One of the biggest upcoming changes is the move to payday super from 1 July 2026.
Currently, employers can pay super quarterly even though salaries and wages are paid weekly, fortnightly or monthly. Under the new rules, super contributions will need to be paid at the same time as your salary and wages.
This could mean:
- your super is paid more regularly
- less chance of unpaid or delayed super
- more time for your money to benefit from compounding investment returns.
For many Australians, even small timing differences can have a meaningful impact over the long term.
Super on paid parental leave
If you care for a child born or adopted on or after 1 July 2025, and you receive Parental Leave Pay from Services Australia, you may receive a super contribution based on the Superannuation Guarantee (SG) rate (12% of your Parental Leave Pay).
This contribution includes an interest component and is generally paid as a lump sum after the end of the financial year in which you received Parental Leave Pay.
This measure is designed to help reduce the long-term impact career breaks can have on retirement savings, particularly for women.
The ATO will begin making these payments from 1 July 2026.
If you are a current CSS member, you will not be able to receive Paid Parental Leave super contributions at this date. Please contact us if you have questions.
Changes for very high super balances
The Government has introduced an additional tax on super investment earnings for individuals with a Total Superannuation Balance (TSB) above $3 million.
The new tax applies from 1 July 2026, and these changes are likely to affect only a small proportion of Australians. While the legislation has passed, key elements of the design as it relates to CSC’s defined benefit schemes are still being finalised.