The 2026 Federal Budget is in. Here is what advisers need to do before July 1

The 2026 Federal Budget came and went without a single major announcement affecting retirement planning. For advisers and those watching the Division 296 deadline, that was far from reassuring.

Jamie Nemtsas, managing director of retirement wealth specialists Wattle Partners, was direct in his response.

“There were no surprises for retirees tonight and that is not a good thing,” he says. “It means everything that was already coming, Division 296, payday super, the new transfer balance cap, is still coming. And in seven weeks.”

The deadline has not moved, and the preparation required has not shrunk. With no threshold changes or relief, the planning that was critical then remains just as necessary now. However, the window is shorter than it was.

The Division 296 conversation that cannot wait

For advisers with clients holding self-managed superannuation fund (SMSF) balances above or close to $3 million, one conversation sits above all others right now: the Division 296 capital gains tax (CGT) election.

Division 296 imposes an additional 15 per cent tax on superannuation earnings for balances above $3 million. Before it takes effect on July 1, trustees have a single opportunity to reset the cost bases of assets held inside their fund. Once that date passes, the option is gone.

“If your balance is above or close to $3 million, you have one shot at resetting your cost bases before the new tax kicks in on 1 July. You cannot cherry-pick which assets to include, it is all or nothing. If you have not had this conversation with your adviser yet, you are running out of time.”

Resetting cost bases now means future capital gains will be calculated from a higher starting point, reducing the taxable gain when those assets are eventually sold. It is a meaningful planning opportunity. But it requires action before July 1, and it received no mention in the Budget whatsoever.

Clearing up the property confusion

The Budget’s negative gearing and CGT announcements generated significant attention. For advisers fielding client calls about existing property holdings, the message is straightforward.

“If you already own an investment property, tonight does not change anything for you,” Nemtsas says. “The negative gearing and CGT changes only apply to properties bought after Budget night, and they do not take effect until 2027.”

Existing holdings are unaffected. The changes are prospective. Advisers who can communicate that clearly will save clients a considerable amount of unnecessary anxiety and redirect their attention to the changes that actually do require action before June 30.

Three changes, one deadline

Beyond Division 296, two further changes take effect on July 1. Payday superannuation requires payroll and cash flow planning for business owner clients. The new transfer balance cap needs to be factored into pension strategies for clients drawing down retirement income.

None of these changes were adjusted in the Budget. None of the deadlines shifted. “We have been saying this to clients for months,” Nemtsas says. “The Budget did not change the deadline.”

The next seven weeks are an important opportunity for advisers to ensure clients have acted on the right things. The CGT election window for Division 296 is finite. Payday super changes require payroll and cash flow planning. The transfer balance cap increase needs to be factored into pension strategies.

Where to focus between now and 30 June

The Budget added noise without adding complexity. The risk for advisers is that clients become distracted by the property headlines and lose focus on the planning that actually matters before June 30.

“Do not let the noise distract you from the planning that actually needs to happen before 30 June,” Nemtsas says.

Three significant changes, one deadline in seven weeks. For advisers who engage clients now and work through the checklist methodically, there is still time to get everything in order before July 1 arrives.