Most of the news cycle around 1 July each year promises sweeping change. FY27 (the Australian financial year running 1 July 2026 to 30 June 2027) is genuinely lighter than recent years — the big bracket and rate moves are already in place, and the headline new item is operational rather than rate-driven (Payday Super for employers). This page is a registered tax agent's clean read on what actually changes 1 July 2026, what stays exactly the same, and where to watch for indexation updates between now and then.
Side-by-side — FY26 vs FY27
Brackets — already where they're going to stay (for now)
The Stage 3 redesigned tax cuts came into effect 1 July 2024. Five brackets, the 16% step at the bottom, and 30% extending all the way to $135k were the headline changes. None of those move 1 July 2026 — no further bracket legislation is currently before Parliament, and the FY27 PAYG withholding tables will mirror FY26 exactly. If you've been getting the Stage 3 take-home-pay benefit since FY25, your fortnightly net stays the same on 1 July 2026.
Super Guarantee — 12% locked in
The legislated SG schedule reached 12% on 1 July 2025 and stays there. There's no further rate increase scheduled. So for FY27 the rate is unchanged — but how employers pay it changes substantially. See our Payday Super guide for the per-pay-run cadence, the 7-day rule, and the SGC penalty regime that tightens 1 July 2026.
WFH 70¢ continues — but the diary requirement does too
The 70¢-per-hour fixed rate (in place since 1 March 2023) covers electricity, internet, phone, stationery and consumables. The ATO has not announced a method change for FY27. The contemporaneous-record requirement still applies — a diary or app log of hours worked from home, not a year-end estimate. Actual cost method remains available where receipts justify a higher claim.
Concessional super cap — watch the indexation review
Concessional contributions cap is indexed in $2,500 increments to AWOTE. It moved from $27,500 to $30,000 on 1 July 2024. Whether it moves again 1 July 2026 depends on the indexation calculation Treasury publishes each May. Plan EOFY 2026 actions assuming the FY26 cap of $30,000 still applies; we'll confirm the FY27 cap once Treasury releases the figure. The carry-forward window (5 unused years if total super balance is under $500k at 30 June of the prior year) continues regardless.
Indexation watchpoints — wait for the late-May / June updates
Several thresholds index annually and the FY27 figures aren't available yet at time of writing. Watch for ATO updates in late May / early June 2026 on:
- Cents-per-kilometre rate — typically reviewed annually; FY26 was 88¢/km
- Medicare levy thresholds — low-income exemption thresholds indexed
- HELP / HECS repayment thresholds — indexed against AWOTE; the threshold and bracket steps shift
- Maximum Super Contribution Base (MSCB) — quarterly cap on SG-bearing earnings; relevant for high earners
- Luxury car tax threshold — relevant for car purchases above the limit
- Concessional contributions cap — possible indexation per above
The genuinely new thing — Payday Super for employers
From 1 July 2026, employers stop paying super quarterly and start paying it within 7 calendar days of each pay run. This is the biggest operational change for employers since Single Touch Payroll. The Super Guarantee Charge (SGC) regime tightens, the Small Business Super Clearing House closes, and the cash-flow effect on small businesses is real (the quarterly super float disappears).
We're moving SBSCH-using clients across to commercial clearing houses in May and early June so the final June 2026 quarterly Super Guarantee can run through the old system before Payday Super starts. If you employ even one staff member, the Payday Super guide is the post for you.
What's NOT changing
- Tax brackets and rates
- Tax-free threshold ($18,200)
- Super Guarantee rate (stays at 12%)
- Choice of Fund + stapled-fund process
- Single Touch Payroll reporting
- WFH 70¢ fixed-rate method (and actual cost as the alternative)
- Capital Gains Tax discount of 50% on assets held over 12 months (individuals + trusts)
- Negative gearing rules
- Income Protection insurance deductibility (when held outside super)
- Donation rules — DGRs only, $2 minimum
Talk to us before 1 July 2026 if you're an employer
Individuals can largely sit on FY27 unchanged from FY26. Employers can't — Payday Super readiness is the work, and the lead time is now-to-end-of-June. Book a 30-minute readiness review on the booking page or call (03) 8732 2126 — fixed quote, no commitment, work with us across Australia by Zoom or phone.
Sources
Tax brackets (Stage 3 redesigned, effective 1 July 2024): ATO — Individual income tax rates; Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024.
Super Guarantee rate schedule: ATO — How much super to pay.
WFH method: ATO — Working-from-home expenses (PCG 2023/1).
Concessional cap indexation: ATO — Concessional contributions cap.
Payday Super: ATO — Payday Super.
