July
2026 financial changes: super, tax and diversification

The new financial year began with the RBA cash rate on hold, oil
prices lower and a significant package of superannuation and tax changes
taking effect or approaching. For investors, the value lies in
understanding which rules apply personally and which headlines are
simply background.

The market picture
at the start of July 2026

The S&P/ASX 200 was around 8,723. The RBA cash rate was 4.35%,
having been held for a third straight meeting. Brent crude oil had
fallen to approximately US73perbarrel, goldwasaroundUS4,050
an ounce and the Australian dollar was near US68.9 cents.

Annual headline inflation was 4.0%, with trimmed-mean inflation at
3.6%. While the headline measure had eased, underlying inflation
remained above the RBA’s target band.

Lower oil prices eased one
pressure

Oil fell as US–Iran peace talks progressed and shipping through the
Strait of Hormuz moved closer to pre-conflict levels. This was
constructive for inflation after energy costs had contributed to
early-2026 rate increases.

Gold, meanwhile, recorded its weakest quarter since 2013 as US rate
expectations firmed. The movement was a reminder that assets commonly
described as safe havens still experience cycles and volatility.

Diversification is
about different responses

Owning many investments is not necessarily diversification. Fifty
Australian bank shares remain heavily exposed to Australian interest
rates, household debt and the domestic economy.

True diversification means holding assets that may respond
differently to the same event. This matters because portfolio
concentration can change without an investor making an active trade. As
index weights shift, a passive Australian share allocation can become
more exposed to resources or other sectors over time.

Periodic review helps ensure a portfolio still reflects its intended
risks rather than the market composition of a different cycle.

New financial-year super
changes

Higher contribution caps

From 1 July 2026, the concessional contribution cap rose to $32,500,
the non-concessional cap to $130,000 and the maximum available under the
bring-forward rule to $390,000. Eligibility conditions apply, and a
higher cap does not automatically make a contribution appropriate.

Payday super

Employers were required to pay super within seven business days of
each payday, replacing the previous quarterly model. Members should
still check that contributions appear in their account correctly.

Division 296

Division 296 applies from the 2026–27 income year to taxable super
earnings attributable to the portion of a person’s total super balance
above the applicable large-super-balance threshold. The ATO identifies
$3 million as the threshold for 2026–27 and applies transitional rules
for that first year. Individual modelling remains important because the
impact depends on balance, earnings and structure.

SMSF residential borrowing
changes

Legislation receiving Royal Assent on 26 June 2026 introduced a ban
on new limited recourse borrowing arrangements for residential property
in SMSFs from 10 August 2026.

The ATO confirms that existing LRBAs, refinancings of existing LRBAs
and binding property contracts exchanged before 10 August 2026 are
unaffected. From that date, new SMSF LRBAs may acquire real property only
where it qualifies as business real property. Anyone considering an SMSF
property transaction should obtain advice on the legislation, timing and
suitability before acting.

Proposed negative gearing reform

The 2026–27 Federal Budget announced that, from 1 July 2027, negative gearing
would be limited to new-build residential property, subject to the final legislation. Properties held
before 7.30 pm AEST on 12 May 2026—including those already under
contract but not settled—would retain their existing treatment.

For established residential property acquired after the cut-off,
rental losses would remain available against rental income and
residential-property capital gains, with unused losses carried forward.
They would no longer reduce tax on salary and wage income.

What this changes in
practice

The reform does not necessarily remove established property from
consideration. It changes the timing and use of deductions. Deposit
size, borrowing costs, expected rental growth, liquidity and time
horizon become even more important.

Existing property owners covered by the grandfathering arrangements
may not need to act, but prospective buyers should model the after-tax
cash flow under the new rules rather than relying on previous
assumptions.

The behaviour gap

Investor returns can be lower than the return earned by the
investments they hold because of poorly timed buying and selling.
Selling after a fall and returning only after a recovery can lock in
both sides of the mistake.

For retirees, a cash and defensive reserve can reduce this pressure
by funding near-term income without requiring growth assets to be sold
at a low point.

Markets and policy will continue to change. A structured plan,
reviewed when rules or circumstances change, is more dependable than
attempting to respond to every headline.

If the new super, SMSF or property rules may affect you, contact
Acquira Wealth Partners for advice based on your circumstances before
making a decision.

Official sources

Important information

This article has been prepared by Acquira Wealth Partners for general
information and educational purposes only. It does not constitute
financial product advice, tax advice or legal advice and has not been
prepared taking into account your objectives, financial situation or
needs. Before acting on any information, consider whether it is
appropriate for your circumstances and seek appropriate professional
advice. Past performance is not a reliable indicator of future
performance. Market data is approximate and sourced from publicly
available information as at the end of June and early July 2026.

Reine Clemow is an Authorised Representative (No. 461670) of Acquira Wealth / Acquira Wealth Pty Ltd is a Corporate Authorised Representative (No. 001319892) of GPS Wealth Ltd | AFSL 254 544 | ABN 17 005 482 726 | www.gpswealth.com.au | Email Disclaimer Acquira Wealth Pty Ltd is a Corporate Authorised Representative (No. 001319892) of GPS Wealth Ltd, AFSL 254 544, ABN 17 005 482 726.

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