April 2026 - Accounting and SMSF Round Up

April 2026 Round Up

This month’s round-up covers super, payroll and public holidays, with three of the four articles tied to deadlines falling before or on 1 July 2026. Super contribution caps are expected to rise from 1 July, and we break down what the changes mean for concessional and non-concessional contributions. NSW businesses also need to check their payroll settings ahead of the additional public holiday on 27 April, with a second substitute day to follow in 2027.

Payday Super takes effect on 1 July 2026 and every pay item in your system needs to be correctly coded before then. And finally, we share a practical guide to building your super to $2 million before retirement, covering what to focus on at each stage of your working life.

Super Contribution Caps Are Increasing From 1 July 2026

From 1 July 2026, Australians will be able to contribute more to their super. The release of average weekly ordinary time earnings data for the December 2025 quarter indicates that concessional and non-concessional contribution caps will rise in 2026-27. Full-time adult earnings reached $2,051 for the quarter, an annual increase of 3.8%, which is enough to push the contributions cap up by $2,500. The ATO is expected to confirm the new rates and thresholds shortly.

Super contribution caps are rising from 1 July 2026

The concessional contributions cap is expected to rise from $30,000 to $32,500 per year. The non-concessional cap is expected to rise from $120,000 to $130,000 per year. For those eligible to use the bring-forward rules, the maximum non-concessional contribution in a single year is expected to increase to $390,000, depending on individual circumstances.

How the new contribution caps change what you can add to your super

Concessional contributions are made from pre-tax income and include employer super guarantee payments, salary sacrifice arrangements and personal contributions for which you claim a tax deduction. Non-concessional contributions are made from after-tax income. Both types count towards separate annual caps, and exceeding either can result in additional tax.

The bring-forward rule allows eligible individuals to contribute up to three years worth of non-concessional contributions in a single year. From 1 July 2026 that amount increases to $390,000. Eligibility depends on your total super balance and individual circumstances.

How the transfer balance cap increase affects your retirement pension

The general transfer balance cap, which is the maximum amount you can transfer into the tax-free retirement phase, will increase from $2 million to $2.1 million on 1 July 2026.

For individuals who have previously started a retirement phase income stream without reaching or exceeding their personal transfer balance cap, the increase flows through proportionally based on unused cap space. Anyone starting a pension for the first time on or after 1 July 2026 will have a personal transfer balance cap of $2.1 million.

How your total super balance controls which contribution rules apply to you

Your total super balance at 30 June each year determines eligibility for a range of contribution rules, including your non-concessional contributions cap, access to the bring-forward arrangement, carry-forward concessional contributions, the work-test exemption, eligibility for the spouse tax offset and co-contributions. As the general transfer balance cap rises to $2.1 million, the total super balance thresholds linked to these rules will also shift.

What needs to be reported to the ATO before the 1 July 2026 changes take effect

The ATO calculates each individual’s personal transfer balance cap based on information reported to it. To ensure caps are correctly updated before the 1 July 2026 indexation date, the ATO is encouraging super funds and advisers to report all transfer balance cap events as early as possible.

If you are unsure how the new caps apply to your situation or want to make the most of the changes before 30 June, get in touch with us.

NSW Businesses Must Prepare for an Extra Public Holiday in 2026 and 2027

The NSW Government has confirmed that when Anzac Day falls on a weekend, a substitute public holiday will be observed on the following Monday. Anzac Day falls on Saturday 25 April 2026 and Sunday 25 April 2027, which means NSW businesses will have an additional public holiday on Monday 27 April 2026 and Monday 26 April 2027. The arrangement is temporary and will be reviewed after the trial period.

The additional Monday public holidays apply statewide and must be treated as standard public holidays for payroll, rostering and leave purposes. Businesses will effectively manage two public holidays across the one long weekend: Anzac Day itself and the substitute Monday. Businesses operating across multiple states will also need to account for different arrangements in other jurisdictions.

How the additional Monday public holiday affects your payroll obligations

The Monday public holidays on 27 April 2026 and 26 April 2027 must be treated as standard public holidays for payroll purposes. Employers should:

Update payroll systems and calendars to reflect both dates
Check award or enterprise agreement conditions for applicable public holiday penalty rates
Review cross-jurisdiction payroll impacts, as other states and territories manage substitute Anzac Day arrangements differently

What the Anzac Day long weekend means for rostering and staff requests

NSW businesses will manage two public holidays across the one long weekend. Employers should begin roster planning early, particularly in sectors that operate seven days a week. This includes consulting with staff about availability and issuing draft rosters or formal written requests for public holiday shifts.

Under the Fair Work Act, employers can request but not require employees to work on a public holiday. Employees can refuse if their refusal is considered reasonable.

How to calculate penalty rates across the Anzac Day long weekend

The additional Monday public holiday triggers full public holiday penalty rates under applicable awards and agreements. Employers should account for:

Additional labour costs for Monday shifts
Increased overtime loading for employees working across both the Saturday or Sunday and the Monday
Potential increases in payroll tax liabilities depending on wage thresholds

How annual leave and trading hours interact with the Monday public holiday

The Monday public holiday operates the same as any other public holiday. Employees on annual leave must be paid for the public holiday and cannot have it deducted from their leave balance. Employers should plan for staffing gaps early if employees request extended leave around the long weekend.

Restricted trading rules apply on Anzac Day itself, on the Saturday in 2026 and the Sunday in 2027, but not on the Monday. The Monday is treated as a normal public holiday with no Anzac-specific trading restrictions, giving businesses more operational flexibility on that day.

What multi-state employers need to check for each jurisdiction

If your operations or workforce span multiple states, payroll must reflect the different public holiday arrangements in each jurisdiction:

ACT: Monday public holiday only
NT, QLD, SA, TAS and VIC: Saturday only, no Monday substitute
WA: Both Saturday and Monday are public holidays

Failing to align payroll with state-by-state requirements can result in overpayments, underpayments, or both.

How to budget for the additional public holiday costs

Public holidays add measurable cost to businesses, particularly small and medium enterprises. Employers should factor the Monday public holiday into annual budgeting, labour forecasting and cash flow planning. The NSW Premier has acknowledged the extra holiday may add strain to small businesses, and the arrangement will be reviewed after the trial period.

If you have questions about how the new public holiday arrangements apply to your business, get in touch with us.

How to Build Your Super to $2 Million Before Retirement

Superannuation remains the most tax-effective way to build investment wealth for retirement, even with recent and proposed changes to super rules. Once you reach pension phase, earnings inside your account are taxed at 0%, meaning every dollar you’ve saved works harder in retirement. The maximum you can currently transfer into that tax-free pension environment is $2 million, subject to indexation. At a 5% drawdown rate, that generates a tax-free income of around $100,000 per year without needing to sell any investments.

Why $2 million is the super target worth planning for

Super contribution caps mean you can’t put unlimited money in whenever you choose. Annual caps operate on a use-it-or-lose-it basis. If you miss a year, that cap is gone, unless you qualify for carry-forward rules, which allow unused concessional contributions to be carried forward for up to five years. The earlier you start, the more flexibility you have to work within those limits and build your balance tax-effectively.

Why starting early makes the biggest difference

Every dollar contributed early has more time to compound. Returns earn returns, and that effect builds quietly over decades. Waiting until the final years before retirement usually means catching up with large lump sums, which is harder to manage and less tax-effective.

What to do in your 20s, 30s, 40s, 50s and 60s to grow your super balance

In your 20s and 30s:

Consolidate super into a single account to avoid paying fees across multiple funds
Review your investment options and make sure they match your age and risk profile
If employed, confirm your employer contributions are being paid correctly
If self-employed, aim to contribute at least 12% of your income

In your 40s:

Maximise concessional contributions, currently capped at $30,000 per year, by topping up employer contributions through salary sacrifice or personal deductible contributions
Every extra dollar contributed now has more than 20 years to grow and reduces your taxable income today

In your 50s and 60s:

Get clear on what your retirement lifestyle will actually cost and make super a priority
If you’ve under-contributed in earlier years, use carry-forward concessional contributions if eligible, or non-concessional contributions of up to $120,000 per year to close the gap

The real cost of waiting: a real world example

Consider Jane. In her 30s she receives the minimum 12% super guarantee on a $90,000 salary, with salary growing at 2% per year with inflation. She chooses a growth option with an estimated average real return of 5% per year.

In her 40s she maximises concessional contributions to $30,000 per year by topping up her employer contributions.

By age 50 her balance could reach $775,000. By age 65 she could retire with $1.89 million, enough to fund a retirement income of $90,000 per year.

How to close the gap if you’ve started late

If Jane adds $15,000 per year in non-concessional contributions from age 55 to 65, she could reach $2.09 million at age 65, supporting a retirement income of $100,000 per year. That is $150,000 in additional contributions generating approximately $50,000 in extra net earnings and an additional $200,000 in super.

While $2 million may feel out of reach, with the mandated 12% Super Guarantee as a foundation and a clear strategy around contribution caps and timing, it is more achievable than most people expect.

Is your super on track for retirement?

Super rules and contribution caps change regularly and everyone’s situation is different. If you’d like to review where your super stands and what you could be doing differently, get in touch with us.

Why Your Pay Item Coding Needs to Be Reviewed Before 1 July 2026

From 1 July 2026, the way super guarantee is calculated changes under Payday Super. Instead of ordinary time earnings (OTE), super will be calculated on qualifying earnings (QE), a broader definition that brings together OTE, salary sacrifice contributions and other payments. For most employers, this means checking that every pay item in your payroll system is correctly coded before the deadline.

Why your pay item coding needs to be reviewed before 1 July 2026

Under Payday Super, super guarantee amounts and any super guarantee charge will both be calculated on qualifying earnings. Currently, employers calculate super guarantee and the super guarantee charge on different earnings bases. From 1 July 2026 those calculations align under one definition. If your pay items are not correctly coded now, errors will flow through to every pay run from day one.

How to check which pay items in your payroll system currently attract super

Start by reviewing how each pay item in your system is currently coded. The following payments are qualifying earnings and must attract super:

Ordinary hours of work, including casual loading, shift penalties and public holiday penalties
Annual leave, long service leave (not under a portable scheme), sick leave, rostered days off and other paid leave
Performance bonuses, Christmas bonuses, sign-on bonuses, referral bonuses and return to work bonuses
All commissions, including those paid solely for work performed outside ordinary hours
Task allowances for skills, adverse conditions or retention
Directors’ fees
Salary sacrifice amounts that would otherwise be qualifying earnings

Common pay items that employers may have coded incorrectly for super

Some pay items are easy to miscategorise. The following do not count as qualifying earnings and should not attract super:

Overtime payments, provided ordinary hours are clearly identified in the award or agreement
Annual leave loading where it is clearly linked to a lost opportunity to work overtime
Expense allowances paid with the reasonable expectation the employee will spend the full amount in the course of their work
Employer-paid parental leave and government paid parental leave
Unused leave paid on termination, including annual leave and long service leave
Community service leave, jury duty leave and defence reserve leave
Genuine redundancy payments, severance pay and golden handshakes

How the move to qualifying earnings changes what your payroll needs to calculate

For many employers the new definition will not significantly change the amount of super being paid. However, the way super is reported through Single Touch Payroll also changes. From 1 July 2026 employers must report both qualifying earnings and super liability through STP, whereas currently only OTE or super liability is reported. Your payroll system needs to be set up to handle both.

What to do if your payroll setup needs updating before the deadline

With less than three months until 1 July 2026, now is the time to act. Employers should:

Go through each pay item in your payroll system and confirm whether it is correctly coded to attract super
Check that allowances, bonuses and leave types are mapped accurately against the qualifying earnings definition
Speak with your payroll software provider to confirm your system is ready to calculate and report qualifying earnings from 1 July 2026
Review any awards or enterprise agreements that may impose additional super obligations beyond the qualifying earnings definition

If you are unsure whether your pay items are correctly set up for Payday Super, get in touch with us.

Important: This is not advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. Liability limited by a scheme approved under Professional Standards Legislation.