The Budget Just Made Super Contributions a Better Deal for Freelancers

For years, the main argument for voluntary super contributions was straightforward: your income is taxed at 30% or more, super is taxed at 15%, and the gap is your saving. It was a good deal. But it sat alongside other options. Investment property had the 50% CGT discount and negative gearing. Shares had the same CGT discount. You could make a reasonable case for any of them.

The 2026 budget changed that math. Not by making super better. By making the alternatives worse.

What the budget did to investment property and shares

Two changes matter here:

The 50% CGT discount is being replaced. From 1 July 2027, the current 50% discount on capital gains for assets held longer than 12 months will be replaced by an inflation-based indexation method, plus a 30% minimum tax on the resulting gain. The old rule was simple: sell an asset after 12 months, halve the gain, add the rest to your income. The new rule is more complex and, for most people, results in a higher tax bill on the gain.

Negative gearing is being limited to new builds. From 1 July 2027, you can only negatively gear newly constructed properties. Existing properties purchased after budget night (7:30pm, 12 May 2026) don't qualify. If you already own a negatively geared property, it's grandfathered.

Both changes take effect from July 2027, not immediately. But they change the forward-looking math for anyone deciding where to put money today.

What the budget did NOT do to super

Nothing. That's the point.

Voluntary super contributions are still taxed at 15%. The $30,000 concessional cap is unchanged. Carry-forward rules are unchanged. The mechanism is the same: you put money into super, you lodge a Notice of Intent, and the contribution reduces your taxable income. The 15% tax is paid inside super instead of the 30-47% you'd pay outside it.

The budget introduced Division 296 for super balances above $3 million (an extra 15% on earnings), but that was already legislated before this budget and affects almost nobody reading this.

For the typical freelancer earning $80,000 to $150,000, nothing about super changed.

The comparison, before and after the budget

Before the budget

Say you're a freelancer earning $100,000 and you have $20,000 to put somewhere beyond your emergency fund.

Option A: Voluntary super contribution

• $20,000 goes into super
• Taxed at 15% inside super = $3,000
• Net in super: $17,000
• Your taxable income drops to $80,000
• Tax saved on your return: $20,000 x 32% = $6,400
• Net benefit this year: $6,400 saved minus $3,000 contributions tax = $3,400
• Trade-off: money is locked until preservation age (currently 60)

Option B: Invest in shares (hold 12+ months, then sell)

• $20,000 invested after income tax ($20,000 x 32% = $6,400 tax, so you're investing from after-tax income)
• Say the shares grow 8% per year. After 5 years: ~$29,400
• Capital gain: ~$9,400
• 50% CGT discount: taxable gain is $4,700
• Tax on gain at 32%: ~$1,500
• Effective tax rate on the gain: about 16%

Option C: Investment property (negatively geared)

• Annual rental loss of $5,000 offsets your income
• Tax saving: $5,000 x 32% = $1,600 per year
• Plus eventual capital gain with 50% discount on sale

In the old world, all three had tax advantages. Super was the most tax-efficient on paper, but property and shares were competitive once you factored in the CGT discount and the flexibility of having your money accessible.

After the budget (from July 2027)

Option A: Super stays exactly the same. $3,400 net benefit at $100,000 income. Same rules. Same 15%.

Option B: Shares get worse. The 50% CGT discount is replaced by indexation plus a 30% minimum tax on gains. Using the same example:

• Capital gain: ~$9,400
• Indexed cost base might reduce the nominal gain, but the 30% minimum tax on the indexed gain means you're paying at least 30% on whatever's left
• Effective tax rate on the gain: likely 30% or higher, compared to ~16% under the old rules
• That's roughly double the tax on the same gain

Option C: Investment property gets hit twice. The CGT changes apply to property gains too, AND negative gearing is limited to new builds. If you were planning to buy an existing property:

• No negative gearing deduction against your freelance income
• Higher tax on the eventual capital gain
• The annual tax benefit of holding the property drops significantly

Why this matters more for freelancers than employees

When you're employed, your employer puts 12% into super automatically. It happens whether you think about it or not. Voluntary contributions are a bonus on top.

When you freelance, nobody puts anything into super for you. The 12% doesn't exist unless you create it yourself. That means the gap between "doing nothing" and "making a voluntary contribution" is much bigger for freelancers than for employees.

Before the budget, a freelancer who didn't contribute to super could still say "I'll build wealth through property or shares instead." That was a defensible strategy when property and shares had generous tax treatment. After July 2027, it's a more expensive strategy. The tax advantages that made property and shares competitive with super are being wound back.

Super at 15% is now the clear winner on tax efficiency. The only real trade-off is access. Money in super is locked until preservation age. If you need the money before 60, it's not available. That hasn't changed and it's a genuine constraint.

But for the portion of your income that you're genuinely setting aside for the long term, the budget just tilted the numbers further toward super.

The numbers at three income levels

Here's what a voluntary super contribution saves you in tax this financial year. These numbers are the same as they were before the budget, because the budget didn't change super. What changed is that the alternatives now offer less of a tax break.

Earning $80,000

Contributing $10,000 to super:

• Tax on that money as income: $10,000 x 32% = $3,200
• Tax inside super: $10,000 x 15% = $1,500
• Net saving: $1,700

Contributing the full $30,000 cap:

• Net saving: $5,100

Earning $120,000

Contributing $15,000 to super:

• Tax on that money as income: $15,000 x 32% = $4,800
• Tax inside super: $15,000 x 15% = $2,250
• Net saving: $2,550

Contributing the full $30,000 cap:

• Net saving: $5,100

Earning $150,000

Contributing $15,000 to super:

• Tax on that money as income: $15,000 x 39% = $5,850
• Tax inside super: $15,000 x 15% = $2,250
• Net saving: $3,600

Contributing the full $30,000 cap:

• Net saving: $6,150

The higher your income, the wider the gap. At $150,000, contributing the maximum saves you over $6,000 this year. That money is in your super, growing at 15% tax instead of your marginal rate.

The super calculator shows the exact saving at your income level.

What to do before June 30

If this financial year's super contribution is on your list, the deadline is coming.

1. Check your contributions so far. Log into your super fund and see what's been contributed in 2025-26. If you've done any PAYG work this year, employer contributions count toward your $30,000 cap

2. Decide on an amount. Only contribute what you can afford to lock away. The tax saving is real, but the money is inaccessible until preservation age. If cash flow is tight, even a small contribution helps

3. Transfer by June 25. BPAY takes a few business days to clear. June 25 is the last safe day to transfer and have it land before June 30. Our EOFY super deadline guide covers the timeline

4. Lodge your Notice of Intent. This is the one-page form that makes the contribution tax-deductible. Skip it and the money goes into super but you don't get the tax break. It needs to be submitted before you lodge your tax return, not before June 30, but don't forget it

If you haven't contributed in previous years, check whether you have unused carry-forward cap space. You may be able to contribute well above $30,000 this year.

Frequently asked questions

Did the budget change the super contribution cap?

No. The concessional contribution cap is still $30,000 for 2025-26. If your total super balance was under $500,000 at the end of last financial year, you can also carry forward unused caps from up to five previous years, potentially contributing much more than $30,000 in a single year. See our carry-forward guide.

When do the CGT changes take effect?

From 1 July 2027. Capital gains accrued before that date still get the old 50% discount under transitional rules. So if you bought shares or property before July 2027, the gain up to that date is protected. Our budget overview for freelancers covers all the changes.

Is my existing investment property affected?

If you owned it before budget night (7:30pm, 12 May 2026), negative gearing is grandfathered. You can keep claiming it. The CGT changes from July 2027 will still apply when you sell, but the transitional rules protect gains accrued before that date.

Should I sell my shares before July 2027?

Not necessarily. The transitional rules mean gains up to July 2027 still get the old 50% discount. Whether it makes sense to sell depends on how much gain has accrued, how long you plan to hold, and your broader financial situation. This is worth discussing with an accountant or financial adviser.

I don't have $30,000 to contribute. Is it still worth it?

Yes. Any amount you contribute saves tax at the same rate. A $5,000 contribution at $80,000 income saves you $850 in tax. A $2,000 contribution saves $340. There's no minimum amount (though your super fund may have a minimum deposit). Every dollar moved from your marginal tax rate to the 15% super rate saves you the difference.

What about non-concessional (after-tax) contributions?

Non-concessional contributions don't give you a tax deduction, but the money inside super is taxed at lower rates on its earnings. The budget changes to CGT make the lower tax rate inside super comparatively more attractive for investment returns too, not just contributions. The non-concessional cap is $120,000 per year (or $360,000 using the bring-forward rule).