From 20th March 2026, the Federal Government has announced changes to the age
pension indexation. This happens twice per annum where the pension increases in
line with inflation. Also included with this is deeming rate.

The deeming rate is the mechanism used by Centrelink to calculate how much
income it assumes your financial assets are generating (savings accounts, shares,
term deposits and the alike).

From July 1st 2026, there are three structural changes to superannuation :-

  • Transfer Balance Cap (TBC) rises to $2M. The TBC is the lifetime limit on how
    much super you can move into retirement phase.
  • Total Super Balance Cap (TSBC) also rises to $2.1M. This is the combined value
    of all your superannuation interests, measured as at 30th June annually.
  • Consolidated Cap (CC) – From July 2026, this changes as to amounts you
    contribute into your super. Firstly, concessional (pre tax) will rise from $30,000 to
    $32,500. Non Concessional (after tax) will rise from $120,000 to $130,000.

For further details, contact your Financial Planner and Accountant.

 

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