Navigating Australia's Financial Reforms in 2026

1. End of Energy Rebates

The federal government's initiative providing energy bill relief concluded on December 31, 2025. Eligible households had previously received substantial rebates over the past two years. With the cessation of this program, households should anticipate higher energy costs and consider strategies to manage their utility expenses effectively.

2. Mandatory Cash Acceptance

From January 1, 2026, retailers with an annual turnover exceeding $10 million are required to accept cash payments for in-person transactions involving essential items like fuel and groceries. This mandate applies to cash transactions of $500 or less conducted between 7 am and 9 pm, ensuring consumers retain the option to use cash for everyday purchases.

3. Three-Day Childcare Guarantee

Effective January 5, 2026, families eligible for the Child Care Subsidy can access at least three days (72 hours per fortnight) of government-subsidised childcare each week. This policy change aims to support working families by providing more consistent and affordable childcare options.

4. Income Tax Reductions

Starting July 1, 2026, the income tax rate for the $18,201 to $45,000 income bracket will decrease from 16% to 15%. This adjustment is expected to save taxpayers approximately $268 in the first year, offering some relief amid rising living costs.

5. Payday Superannuation Implementation

From July 1, 2026, employers are mandated to pay superannuation contributions concurrently with salary or wage payments. This change is designed to enhance the compounding benefits of superannuation and reduce instances of unpaid super, ultimately boosting retirement savings for employees.

6. Increased Tax on Higher Super Balances

Pending legislation, from July 1, 2026, earnings on superannuation balances exceeding $3 million will be taxed at 30% (up from 15%), and earnings on balances over $10 million will be taxed at 40%. These changes aim to address equity within the superannuation system and ensure sustainability.

7. Extended Paid Parental Leave

Australians welcoming a new child will benefit from an increase in government-funded paid parental leave, rising to 26 weeks from July 1, 2026. This extension supports parents in balancing work and family responsibilities during the critical early months of a child's life.

8. Potential Removal of Card Surcharges

The Reserve Bank of Australia (RBA) is considering eliminating surcharges on debit and credit card transactions. A final decision is expected in March 2026, with potential implementation later in the year. If enacted, this change could lead to cost savings for consumers and streamline payment processes.

Understanding these reforms is essential for Australians to adapt their financial strategies accordingly. Consulting with financial advisors and staying updated on legislative developments will help individuals and businesses navigate these changes effectively.