What Changed on 1 July 2026: A Plain-English Guide for SMEs and Family Trusts

Every 1 July brings a reset. New financial year, new contribution caps, new thresholds, and in FY27, some structural changes that are worth understanding before Q1 gets away from you.

This is not an exhaustive list of every legislative change. It is a practical summary of the changes most likely to affect how you plan and structure your finances this year.

Super contribution caps have increased

The concessional contributions cap for FY27 has increased to $32,500 (up from $30,000). This is the cap that covers employer super guarantee payments, salary sacrifice contributions, and personal deductible contributions combined.

The non-concessional contributions cap has also increased, to $130,000, with the three-year bring-forward arrangement rising to $390,000.

For anyone who salary sacrifices or makes personal contributions, the new cap creates room to do more this year than last. The key is to set your contribution levels at the start of the year, not in May when time has run out.

Tax thresholds have been revised

The stage three tax cuts took effect from 1 July 2024, but FY27 brings further adjustments worth confirming with your accountant. Marginal rates and the thresholds at which they apply affect income splitting decisions, distribution planning, and the overall efficiency of your structure.

If you have not confirmed the current thresholds with your adviser, this is a good time to do it. The difference between planning at the right threshold and planning at last year’s can be meaningful when distributions are involved.

SME planning: structure and contribution levels

The start of a new financial year is the right moment to check two things for your business: whether your current structure is still efficient, and whether your contribution and distribution settings are calibrated for the year ahead.

A few questions worth raising with your accountant before Q1 builds:

• Has your business grown or changed in a way that affects how income should flow through the structure?
• Are your salary sacrifice or personal contribution levels set to take advantage of the new FY27 caps?
• If you have a family trust, were last year’s distributions handled as planned, and is the deed still current?
• Are your FY27 BAS obligations clear, including the Q1 due date on 28 October?

These are not complicated conversations. But they are easier to have at the start of the year than six months in when decisions have already been made.

Family trust holders: confirm your distributions and deed

If you hold income or assets through a family trust, the changeover to FY27 is a practical prompt to confirm a few things:

• Were FY26 distributions made as intended, and is the documentation in order?
• Does the trust deed still reflect your current beneficiary structure and circumstances?
• Is the investment strategy (where applicable) current and actually being followed?

Trust deeds and distribution strategies do not update themselves. The businesses that stay ahead of these questions are the ones who ask them at the start of the year, not under deadline.

A note on timing

The beginning of the financial year is the most useful time to have these conversations. Decisions made in July have eleven months to play out. Decisions made in June have to be right immediately.

If you have questions about how the FY27 changes affect your situation, we are here to help. The starting point is always a conversation. To start yours, call 1300 866 113 or book a time via our website.

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