July 1 Is Here: 5 Smart Money Moves for the New Financial Year
Five practical money moves for Australian families at the start of the new financial year — tax withholding, super boosts, family benefits, and receipt habits that pay off later.
By AvaShort answer
1 July marks the start of a brand-new Australian financial year. It's the perfect moment to spend an hour on a few simple money checks — the kind that can save you hundreds by the time next June rolls around. Here are five moves worth making this week.
1. Check your tax withholding
This is probably the single biggest money move most people skip. Your employer withholds tax from every pay based on the tax file number declaration you filled out when you started — and plenty of us haven't looked at it since.
If too little is being withheld, you'll owe the ATO when you lodge. If too much is being withheld, you're giving the government an interest-free loan every pay cycle.
What to do: Log into myGov, fire up the ATO's tax withheld calculator, and compare what's coming out of your pay to what should be. If there's a gap, submit a new withholding declaration through your employer.
This is especially important for families where one partner works part-time or stepped back to care for kids. The lower earner's withholding often drifts out of whack — particularly if you're no longer claiming the tax-free threshold on a second job.
2. Boost your super while the cap is fresh
Your concessional super contribution cap resets every 1 July. For 2026-27, the cap is $30,000. That covers your employer's compulsory 12% SG contributions plus any salary sacrifice you choose to make.
Here's what even a small weekly salary sacrifice can do over time:
| Weekly sacrifice | Annual contribution | Tax saved (at 30% bracket*) | Extra super after 10 years |
|---|---|---|---|
| $20 | $1,040 | ~$202 | ~$13,500 |
| $50 | $2,600 | ~$506 | ~$33,800 |
| $100 | $5,200 | ~$1,012 | ~$67,600 |
*Includes 2% Medicare levy. Concessional contributions are taxed at 15% inside super instead of your marginal rate. Assumes 7% annual return — not guaranteed but broadly in line with long-term averages.
Even $20 a week adds up — and the tax saving makes it hurt less than you'd think. If you've got unused cap amounts from the last five years, you can carry those forward too (as long as your total super balance is below $500,000).
3. Review your family benefits
Family Tax Benefit and Child Care Subsidy rates are indexed on 1 July every year. But rates aren't the only thing that changes — your circumstances probably have too. The income estimate you gave Centrelink six months ago might not match what you're actually earning now.
Log into myGov, head to Centrelink, and check:
- Is your family income estimate still accurate?
- Is your CCS withholding percentage right?
- Are you owed any FTB supplement from the year just ended?
Getting your income estimate wrong can mean a Centrelink debt later — they reconcile at the end of the financial year and claw back overpayments. Five minutes in July saves a headache next June.
4. Set up a simple receipt system (before you need it)
Tax time is chaotic when your receipts are scattered across three email accounts, a kitchen drawer, and a handful of faded Bunnings dockets. The new financial year is the perfect time to start fresh with one simple habit.
It genuinely doesn't need to be complicated:
- Digital receipts: Forward everything to a dedicated email folder labelled "Tax 2026-27"
- Paper receipts: Snap a photo on your phone the day you get it
- Work-from-home: Use the ATO's revised fixed-rate method (67 cents per hour for 2026-27) or track actual hours in a simple spreadsheet
A tool like AusTax AI can keep your receipts organised through the year so you're not scrambling in June. But honestly, even a labelled Gmail folder is a thousand times better than nothing.
5. Set one money goal for the year
This one sounds soft but it's the move that makes the others stick. Pick one number you want to hit by 30 June 2027:
- "I'll build a $3,000 emergency fund"
- "I'll salary sacrifice an extra $40 a week into super"
- "I'll pay an extra $200 a month off the mortgage"
Write it somewhere you'll see it. Tell your partner. The start of the financial year is a clean slate — and the small moves you make in July are the ones that quietly build wealth by the time next tax season rolls around.
The new financial year doesn't demand a complete money overhaul. One hour, five checks, and you're set up for a stronger year ahead.
Frequently asked questions
When does the Australian financial year start and end?
The Australian financial year runs from 1 July to 30 June. The new financial year starts on 1 July each year — that's when tax brackets, super contribution caps, and government benefit rates are typically updated.
Should I check my tax withholding at the start of the financial year?
Absolutely. If too little tax is withheld you might face a bill at tax time. If too much is withheld you're giving the ATO an interest-free loan. A quick check in July can keep more in your pocket each pay.
What happens to my super concessional cap on 1 July?
Concessional (before-tax) super contribution caps reset on 1 July. For 2026-27 the cap is $30,000. You can also use unused cap amounts from the last five years if your total super balance is under $500,000.
Do Family Tax Benefit and Child Care Subsidy change on 1 July?
Yes — FTB and CCS rates are indexed on 1 July each year. Log into myGov and check Centrelink to see if your payments or income estimate need updating.