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In this update, we’ll aim to answer key questions we’ve received from advisers. We’ll also help you get up to speed with technical developments for the period from 28 May 2026 to 23 June 2026, including a summary of the latest technical developments impacting the advice provided to clients.

In this edition, the Adviser query of the month considers the ability to use an individual’s remaining NCC cap in 2026-27 when they triggered the bring forward rule in 2024-25.

Adviser query of the month

Question

My client made non-concessional contributions (NCC) of $150,000 in 2024-25. In doing so, they triggered the bring forward rule, locking in an NCC cap of $360,000 for the three year period from 2024-25 to 2026-27.

Their total super balance (TSB) was $2,005,000 at 30 June 2025 meaning their NCC cap for 2025-26 was nil. As such they were unable to use the remaining NCC cap of $210,000 in 2025-26.

If their TSB at 30 June 2026 was $2,050,000, will they be eligible to use the remaining NCC cap of $210,000 in 2026-27?

In addition, is there a resource that can be used to determine an individual’s NCC cap for 2026-27?

Answer

In this instance, the remaining NCC cap can be used in 2026-27 provided their TSB at 30 June 2026 is less than $2.1 million. If the client’s TSB was $2.1 million or more at this date, their NCC cap for 2026-27 would be nil. 

It’s important to also be aware of the contribution acceptance rules. Member (excluding downsizer contributions) and spouse contributions must be received by the super fund no later than the 28th day after the month the individual turns 75. 

The NCC cap rules are quite nuanced and Macquarie’s Non-concessional contribution capacity flowchart can be a useful tool in determining a client’s NCC cap based on the year the contribution is made. 

Federal Budget 2026-27 developments

The information below was correct as at the date of preparation, 23 June 2026, and drafted prior to the relevant legislative changes passing Parliament on 25 June 2026. Therefore, this information is subject to change and may differ from the final legislation.

In last months’ technical briefing we provided a summary of the key personal tax developments outlined in the 2026-27 Federal Budget and the introduction of Bills to Parliament (namely Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026 and Treasury Laws Amendment (Tax Reform No. 1) Bill 2026) which contain a number of these proposals. Since that update several developments have occurred and are outlined below.

1. Government announcement 18 June 2026 – changes and consultation

The Government announced implementation details for its tax reform package, with specific reference to the following areas:

  • Testamentary trusts – The original announcement by the Government in the Budget was for the proposed 30 per cent minimum tax on discretionary trusts to apply testamentary trusts established from Budget announcement.
  • The latest announcement from the Government indicates that this proposal will no longer apply to discretionary testamentary trusts, provided they are established for genuine testamentary purposes. These include:
    • that income will need to come from assets of the deceased estate. Any income or assets added to the trust after Budget night (i.e. from 7.30pm on 12 May 2026) that is unrelated to the deceased estate will be subject to the minimum tax, and
    • that the trust can only benefit individuals and income tax exempt entities if it is established on or after 1 July 2028.
  • Small business CGT concessions – To assist small business owners with the proposal to remove the 50 per cent CGT discount from 1 July 2027, the Government intends to broaden access to the small business 50 per cent active asset reduction by increasing the turnover threshold.

Under current laws, the turnover threshold is $2 million and the Government proposes to increase this to $10 million.

The $2 million turnover threshold will continue to apply to the other small business CGT concessions, being the 15-year exemption, retirement exemption and rollover relief.

  • New CGT concessions – The Government is proposing a targeted Capital Gains Tax (CGT) discount for investors in innovative start-ups, known as the Innovative Business CGT Concession (IBCC). This is intended to support high-risk, high-growth potential innovative activity.
    The core of the proposal is a 50 per cent discount on nominal capital gains for early investors' shares and options in these companies. Shareholders will have the choice to use this 50% discount or the alternative of using cost base indexation with a 30% minimum tax.

Consultation for the IBCC closes on 10 July 2026.

The Government has indicated that it will make amendments to the legislation before Parliament to provide as much certainty as possible.

The Government has also indicated it will develop further tranches of legislation to implement the Budget tax reform package, including a release of a consultation paper on implementation of the minimum tax on discretionary trusts in the coming weeks.

Further information can be found here:

Prime Minister of Australia media release - Tax reform implementation for small business and startups

The Treasury - Capital Gains Tax and Discretionary Trusts Reform: Small business explainer

The Treasury – Consultation – Capital gains tax reforms – arrangements for innovative start-ups

2. Government announcement 23 June 2026 – changes to limited recourse borrowing arrangements (LRBAs) in super

The Government announced that it will support an amendment (to the Bill before Parliament) that will be moved by the Greens to ban future LRBAs for residential property by superannuation funds.

The announcement reiterated that these changes won’t affect existing LRBA arrangements and will allow time to finalise arrangements that are in progress.

Further, this change is limited to residential property, suggesting that new LRBAs involving other assets, such as commercial property, will be allowed.

Further information can be found here:

Prime Minister of Australia media release - Government another step closer to delivering tax reforms

Legislative developments

Division 296 regulations

On 11 June 2026 the Government registered Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026, which support the Division 296 tax laws and other super related measures.

Areas covered by these regulations include:

  • CGT adjustment for large superannuation funds (e.g. retail funds) and pooled superannuation trusts (PSTs)

As noted in the May 2026 Adviser query of the month, large super funds and PSTs don’t have the option to reset the cost base of assets held at 30 June 2026 in the same was as small super funds (e.g. SMSFs) do. Instead, they have a four-year transitional period (2026-27 through to 2029-30) whereby any net capital gains realised during the year will be reduced. During these four years, the net capital gain will be multiplied by a factor relevant to that year.

Unlike the CGT concessions for small super funds, these concessions aren’t limited to assets held at 30 June 2026, they apply to all realised net capital gains during the transitional period.

Year of CGT event

Factor

2026-27

0.2

2027-28

0.4

2028-29

0.6

2029-30

0.8

As an example, in the 2026-27 financial year a super fund has a gross capital gain of $150,000 after applying capital losses.

The fund is entitled to the 1/3 discount as the assets have been held for at least 12-months. After applying this discount, the net capital gain is $100,000.

For Division 296 tax purposes, this net capital gain is then multiplied by 0.2, resulting in an earnings amount of $20,000.

  • Excluded interests for Division 296 earnings

Individuals who are, or have been, State higher level office holders are declared for exclusion from certain Division 296 provisions, meaning interests in constitutionally protected funds will be excluded from having an attributable earnings amount.

  • Division 296 earnings to be nil certain pension interests

Relevant superannuation earnings for interests supporting pensions payable under section 123 of the Federal Circuit and Family Court of Australia Act 2021 are prescribed as nil, consistent with other defined benefit judicial pensions.

  • Modification of Division 296 earnings for defined benefit and certain other interests

The law contains the following formula for calculating the Division 296 earnings for defined benefit and certain other interests.

[Total super balance (TSB) closing-TSB opening-Contributions+Withdrawals]XFactor
 
  • These regulations clarify certain constituents of the formula as follows: 
    • Factor – defined as 0.825
    • Contributions – lists the components to be excluded from earnings, including member contributions, roll-overs, the starting TSB value of newly recognised interests (e.g., for non-member spouses or death benefits), insurance payments, increases from fraud compensation or remediation and amounts allocated from reserves
    • Withdrawals - lists the components to be added back to increase earnings, including superannuation benefits paid, family law payment split adjustments, the TSB value when a death benefit income stream commences, and certain decreases related to military invalidity income stream
  • Modification of Division 296 earnings for deceased individuals

The regulations modify the Division 296 earnings for the year an individual dies to include earnings from future years until the death benefit is fully paid (i.e. as a pension, lump sum or a combination).

  • General attribution method for Division 296 earnings

Details the matters that superannuation funds must consider when attributing Division 296 fund earnings to members on a ‘fair and reasonable basis’. This method excludes certain super accounts such as those in small super funds and

These matters include the characteristics of the interest, the period it existed, associated earnings (including from reserves), changes in value, and investment options. Funds are guided to attribute consistently and fairly to all members and beneficiaries. Negative attribution is possible for individual interests.

  • Division 296 earnings attribution for small super funds (e.g. SMSFs)

Provides the following formula for attributing earnings to interests in small superannuation funds (those with six or fewer members). An actuary's certificate is generally required, with exceptions for nil fund earnings or sole member funds under specific conditions.

 

Division 296 fund earnings for the fund for the fund year

 

X

 

Average total superannuation balance value of the relevant interest

Average sum of the total superannuation balance values of non-excluded superannuation interests+Average sum of the value of all pension reserves
 
  • Calculation of total super balance (TSB)

The regulations prescribe how TSB value is to be calculated for certain super interests, including defined benefit interests and innovative income streams. These changes generally apply from 1 July 2026.

Important information

This information is provided by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237 492 (MIML or We). MIML is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth), and MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542, AFSL 237502. Any investments are subject to investment risk including possible delays in repayment and loss of income and principal invested. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML.

This information is provided for the use of financial services professionals only. In no circumstances is it to be used by a potential investor or client for the purposes of making a decision about a financial product or class of products.

The information provided is not personal advice. It does not take into account the investment objectives, financial situation or needs of any particular investor and should not be relied upon as advice. Therefore, before acting on any information provided, the appropriateness of that information should be considered having regard to any objectives, financial situation or needs. Any examples are illustrations only and any similarities to any readers’ circumstances are purely coincidental.

While the information provided here is given in good faith and is believed to be accurate and reliable as at the date of preparation, 23 June 2026, it is provided by MIML for information only. Neither MIML, nor any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. MIML does not accept any responsibility for information provided by third parties that is included in this document. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. This information does not constitute legal advice and should not be relied upon as such. MIML will not be liable for any direct, indirect, consequential or other loss arising from reliance on this information.

MIML does not give, nor purport to give, any taxation advice. The application of taxation laws to each client depends on that client’s individual circumstances. Accordingly, clients should seek independent professional advice on taxation implications before making any decisions about a financial product or class of products.

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