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July 2026

Market movements and review video – July 2026

Stay up to date with what’s happened in the Australian economy and markets over the past month.

June delivered a mixed picture for the Australian economy as the new financial year begins. Headline inflation eased, but underlying inflationary measures rose to their highest level in almost two years, reinforcing expectations that interest rates may remain higher for longer. 

Domestic data highlighted ongoing structural pressures. Building approvals remained subdued, signalling persistent constraints on housing supply despite strong demand. Consumer confidence weakened, falling 2.9% to 80.6, returning to pessimistic levels after a brief improvement in May. 

Australian share markets were volatile, with the ASX 200 moving within a narrow range as investors responded to shifting rate expectations and global uncertainty.

Globally, shares delivered strong gains, however, risks remain elevated. In the United States, concerns about policy direction and financial stability unsettled markets, while geopolitical tensions including the on-again off-again ceasefire in the Gulf continued to cause inflationary and supply risks. 

Click the video below to view our update.

Please get in touch if you’d like assistance with your personal financial situation.

Superannuation: more relevant than ever

A range of superannuation changes that came into effect on 1 July 2026, are reinforcing the role of super as one of the most tax-effective investment structures available.

For many investors, it’s not simply that super remains attractive but that the rules continue to change. Understanding these changes can help ensure your strategy takes advantage of available opportunities while staying on track with your financial goals.

A changing tax environment

Outside of super, tighter rules around the use of discretionary trusts and closer scrutiny of income distributions have reduced some traditional tax planning flexibility. Combined with the ongoing treatment of capital gains, this has made tax outcomes in non-super structures less predictable for some investors.ⁱ In contrast, superannuation continues to provide favourable tax treatment. This is a key reason why super is becoming increasingly important in long-term financial planning.

Payday Super – boost your retirement savings

One of the more practical changes is the introduction of Payday Super, which requires employers to pay super contributions at the same time as wages rather than quarterly.ⁱⁱ While this is primarily an administrative shift, it can have a real impact on individuals’ super balance. More frequent contributions mean compounding begins earlier. Over time, this could lead to improved retirement outcomes.

Higher contribution caps create more opportunities

From 1 July 2026, the concessional superannuation contribution cap (including employer contributions and salary sacrifice) increased to $32,500 from $30,000 in the 2025-2026 financial year.

Non-concessional caps have also increased, from $120,000 in 2025-2026 to $130,000 in the 2026-2027 financial year, enabling larger after-tax contributions. This can be particularly relevant for individuals who have accumulated savings outside super and wish to transfer funds into a more tax-advantaged environment.ⁱⁱⁱ

Carry-forward and bring-forward rules

Two existing rules continue to offer significant opportunities when used effectively.^iv

The carry-forward rule allows those with a total super balance below $500,000 on 30 June in the previous financial year to use unused concessional cap amounts from previous years. This can be especially beneficial for those with irregular income patterns, such as business owners or individuals returning to work after a break.

The bring-forward rule allows you to make several years’ worth of non-concessional contributions in one year, subject to eligibility criteria. This can be particularly useful when receiving an inheritance, selling an asset or restructuring investments.

Parental leave contributions

Another important development is the extension of super contributions to government-funded parental leave, introduced last year. It recognises the long-term impact that time out of the workforce can have on retirement savings, particularly for women.^v While the financial impact may appear modest in the short term, over time the effect of compounding can be meaningful.

Division 296 tax

One of the more widely discussed measures is the Division 296 tax, which applies an additional tax on earnings associated with super balances above $3 million.^vi

While this affects a relatively small proportion of investors, it represents an important shift in the superannuation landscape. The measure is designed to target very large balances, with the objective of limiting the extent of tax concessions at higher levels of wealth.

Transfer Balance Cap increase to $2.1 million

The increase in the Transfer Balance Cap to $2.1 million is another positive development, particularly for those approaching or entering retirement.

This cap determines how much can be transferred into the tax-free retirement phase. An increase allows more capital to benefit from a zero per cent tax rate on earnings, enhancing after-tax income in retirement.

Bringing it all together

Superannuation continues to offer a compelling tax environment, particularly when compared with other investment strategies that are facing increased complexity and scrutiny.

Contribution caps, along with carry forward and bring forward rules, provide multiple pathways to build super balances over time. Changes such as Payday Super and parental leave contributions highlight the benefits of regular, ongoing investment into super and the power of compounding. While new measures such as Division 296 introduce additional considerations, they do not diminish the overall value of super for most investors.

Please get in touch if you’d like to discuss any of these superannuation options.

 

i Capital Gains Tax and Discretionary Trusts Reform | Treasury.gov.au

ii Payday Super | Fair Work Ombudsman

iii Contributions caps | Australian Taxation Office

iv Carry forward and bring forward rules | ATO

v Paid Parental Leave Superannuation Contribution | ATO

vi Better Targeted Super Concessions is law | ATO

Refresh your digital defences in the new financial year

As a new financial year rolls around, most of us have been busy getting everything in order. While you are ticking off your financial housekeeping tasks, there is one important area that deserves a spot at the top of the list: your digital security.

It is easy to overlook, but reviewing your passwords, security settings, and multi-factor authentication (MFA) is one of the most valuable things you can do to protect yourself as you step into the new financial year.

Digital security is more important than ever

Cybercrime is becoming more common and unfortunately, more convincing. Tax time is a peak period for scams, phishing emails, and identity theft attempts. With so much sensitive financial information being shared and accessed, even a small security gap can have serious consequences.

A weak password or an old login is not just a minor oversight. It can be the entry point to your bank accounts, emails, or business systems. Once someone gains access, the fallout can be costly and stressful so take steps now to protect your financial future.

Step 1: Review and update your passwords

If you are still using passwords you created years ago, or reusing the same one across multiple accounts, now is the perfect time to clean things up. Strong, unique passwords are the first line of defence against cybercrime.

• Use long, unique passwords for each account

• Avoid obvious choices like names, birthdays, or common words

• Try using a passphrase, a string of random words that is easy to remember but difficult to guess

• Consider a password manager to generate and store passwords securely

Think of this as clearing out risk, not just clutter. A small investment of time now can save a lot of stress later.

Make it easier with a password manager

Keeping track of strong, unique passwords does not have to be difficult. Password manager apps are designed to do the heavy lifting for you. They securely store your passwords, generate strong ones, and even autofill them when you need to log in.

Some popular options include:

• LastPass

• 1Password

• Dashlane

• Bitwarden

Using one of these tools turns password management from a chore into a simple, reliable system. Many also include features like security alerts and password health checks, helping you identify weak or reused passwords before they become a problem.

Step 2: Turn on multi-factor authentication (MFA)

Passwords alone are no longer enough. MFA adds an extra layer of protection by requiring a second form of verification, such as a code sent to your phone or generated by an authentication app.

Make sure MFA is enabled on your:

• Email accounts

• Banking and financial services

• Government portals

• Cloud storage and work systems

Even if someone obtains your password, MFA can prevent them from gaining access. It is one of the easiest, most effective ways to protect your accounts.

Step 3: Do a quick account audit

The new financial year is the perfect time to review your online accounts, just as you would review your finances.

• Delete accounts you no longer use

• Check for unfamiliar logins or devices

• Update your recovery email and phone number

• Review which apps have access to your accounts
   

This simple audit ensures your digital footprint is tidy and that only the accounts you actively use are connected to your personal and financial information.

Step 4: Secure your devices

Your devices; including phones, tablets, and computers, are part of your financial toolkit. They should be included in your new financial year housekeeping routine.

• Keep your system and apps updated

• Use trusted security software

• Set up screen locks or biometric protection

• Avoid using public Wi-Fi for anything sensitive, or use a VPN if needed

Taking care of your devices protects not just your accounts but the information stored on them.

A secure start

A new financial year is all about getting organised and setting yourself up for success. While it is easy to focus solely on finances, your digital security deserves equal attention.

Because the reality is simple, it is far easier to prevent a security issue now than to deal with the financial and emotional cost of fixing one later.

Make digital security part of your routine to move into the new financial year with peace of mind.