The superannuation system just became a little more generous.

From 1 July 2026, the concessional contributions cap rose to $32,500, up from $30,000 in FY26. This has given Australian investors more room to make tax-effective contributions into superannuation.

Concessional contributions include employer super guarantee payments, salary sacrifice contributions, and personal deductible contributions.

All three count toward the cap.

What the extra $2,500 is actually worth

An extra $2,500 in concessional contributions per year might not sound significant.

However, over a long investment horizon, the maths adds up.

According to Pitcher Partners, an additional $2,500 per year contributed to super on a concessional basis, invested at a long-term return of around 7% per annum, could grow to approximately $37,000 over 10 years.

The tax benefit compounds that further: every dollar of salary sacrificed into super at 15% rather than at a marginal tax rate of 32.5% or higher is a permanent tax saving.

For a worker on a salary of $90,000 contributing the full extra $2,500 via salary sacrifice, the income tax saving is approximately $437 per year.

The non-concessional cap and bring-forward rule also increased

The cap increase does not stop at concessional contributions.

The non-concessional contributions cap also rose to $130,000 from 1 July 2026, up from $120,000.

For investors under 75 with a total super balance below $2.1 million, the three-year bring-forward rule now allows up to $390,000 in non-concessional contributions in a single financial year.

The transfer balance cap also rose to $2.1 million. This lifts the maximum amount that can be moved into a tax-free retirement income stream and gives retirees more room to shelter earnings from tax.

An important catch-up deadline that just passed

One critical change that came into effect this month deserves separate attention.

From 1 July 2026, any unused concessional contribution cap amounts from FY21 and earlier are permanently forfeited.

Investors who were eligible to carry forward unused amounts from 2020-21 and chose not to use them by 30 June 2026 have now lost that opportunity permanently.

Looking ahead, the five-year carry-forward window now runs from FY22 to FY27, giving investors with super balances below $500,000 the ability to catch up on contributions they missed in those years.

Two ASX shares that benefit from a growing superannuation pool

More money flowing into superannuation benefits the wealth management platforms that administer and invest those assets.

Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) are the two most direct ASX beneficiaries of this dynamic.

Hub24 delivered record half-year net inflows of $10.7 billion in 1H FY26. The company also upgraded its FY27 platform funds under administration target to $160 billion to $170 billion. This was driven by the consistent growth in Australia’s super pool.

Netwealth reached a record $125.6 billion in platform Funds Under Administration (FUA) in 1H FY26. Platform revenue climbed 25% on the strength of consistent inflows and sticky adviser relationships.

As higher contribution caps, payday super, and expanded parental leave contributions combine to drive more money into the system in FY27, both platforms are positioned to capture a disproportionate share of that growth.

Foolish takeaway for your superannuation strategy

The concessional contributions cap increase to $32,500 is modest in isolation.

However, over a decade or more of investing, the compounding impact of higher contributions at a lower tax rate becomes material.

For investors who are not yet using their full concessional cap through employer contributions and salary sacrifice, the first step is checking where you stand against the new $32,500 limit.

The second step is arranging any additional salary sacrifice through your employer before the end of the next pay cycle.

The post The superannuation concessional contributions cap just rose to $32,500. Here’s how to make the most of it appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The tax return you lodge for the next financial year will look different to every return you have filed before it.

Three meaningful changes took effect on 1 July 2026 and will appear in your FY27 return.

Understanding each of them before you lodge will help you maximise your refund and avoid common mistakes.

Change one: the 15% tax rate

The most important change is the reduction in the marginal tax rate on income between $18,201 and $45,000.

That rate dropped from 16% to 15% from 1 July 2026, delivering a tax cut worth up to $268 per year to every Australian taxpayer.

For most salary and wage earners, this adjustment was already applied to your take-home pay from 1 July through your employer’s PAYG withholding calculations.

When you lodge your FY27 return, the ATO will calculate your tax at the new 15% rate automatically.

You do not need to do anything specific to claim this benefit.

However, if you changed jobs during the year, started freelancing, or had irregular income, your employer may not have withheld at exactly the right rate.

Change two: the $1,000 instant work-related expense deduction

From FY27, every Australian who earns salary or wage income can claim up to $1,000 in work-related expenses without keeping a single receipt.

Previously, the receipt-free limit was $300.

The new $1,000 deduction applies automatically when you lodge your return.

For a worker on a 32.5% marginal tax rate, claiming the full $1,000 deduction is worth approximately $325 in tax savings.

The deduction cannot be combined with specific expense claims above $1,000. If your actual work-related expenses exceed $1,000 and you have receipts to prove it, you should claim the actual amount rather than the instant deduction.

Work-related expenses include items like home office costs, professional development, tools, uniforms, and technology used for work.

Change three: higher Medicare levy thresholds

Medicare levy low-income thresholds increased from 1 July 2025 and apply to the FY27 return.

The threshold for singles rose to $28,011, up from $27,222, meaning more low-income Australians will pay no Medicare levy on their FY27 return.

The family threshold rose to $47,238 and increases by $4,338 for each dependent child or student.

For single seniors and pensioners, the threshold rose to $44,268.

If you earn below these thresholds, you may be entitled to a Medicare levy reduction or exemption when you lodge.

What to do with any tax refund

A tax refund is not a windfall. Instead, it is the return of money you overpaid during the year.

However, how you deploy a refund still matters.

Spending it immediately on discretionary items means the tax cut effectively disappears into everyday consumption.

Investing it, even a modest amount, is the start of a compounding habit.

Commonwealth Bank of Australia (ASX: CBA) is the most widely held ASX share among Australian retail investors. The company offers a fully franked dividend yield and long-term earnings track record that suits a regular, small-investment approach.

Alternatively, for investors who want instant diversification rather than individual stock selection, the Betashares Australia 200 ETF (ASX: A200) charges just 0.04% per annum and tracks the performance of 200 of Australia’s largest companies in a single trade.

For global technology and AI exposure, the Betashares Nasdaq 100 ETF (ASX: NDQ) gives investors access to the world’s largest non-financial technology companies. This will includes SpaceX following its Nasdaq-100 inclusion this week.

Foolish takeaway

Your FY27 tax return will be simpler in some ways and more lucrative in others.

The 15% rate and the $1,000 instant deduction both reduce your tax liability automatically.

The Medicare levy changes may eliminate the levy entirely for lower-income earners.

Understanding the changes before you lodge means you claim what you are entitled to, rather than leaving money on the table.

The post Your FY27 tax return will look different. Here’s what changed and how to prepare appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $5,000 to invest in ASX shares, I would want to own businesses that will still be important in 10 years.

That is why I like ResMed Inc. (ASX: RMD) and TechnologyOne Ltd (ASX: TNE).

They operate in different markets, but both solve problems that are not likely to fade. One is helping people manage sleep and breathing disorders. The other helps important organisations run essential systems more efficiently.

I think that gives both companies a strong starting point for long-term investors.

ResMed shares

ResMed is an ASX healthcare share I would happily buy with part of that $5,000.

The company is best known for sleep apnoea devices, masks, accessories, software, and connected health technology.

This is a great place to be. Sleep and breathing disorders remain a large, underpenetrated healthcare market. Many people are still undiagnosed or undertreated, which gives ResMed a long runway if awareness and access continue improving.

Its recent numbers also show that demand has not disappeared. In the third quarter of FY26, ResMed reported revenue growth of 11% to US$1.4 billion. It also delivered 18% growth in non-GAAP income from operations.

I would not buy ResMed just because one quarter looked solid. I would buy it because those numbers support the broader point: the company is still growing while investing in a market with significant long-term need.

There are risks, including competition, GLP-1 drugs, and healthcare sentiment. But I think the market may be underestimating the durability and size of the opportunity.

TechnologyOne shares

TechnologyOne is another ASX share I would buy for the long term.

The company provides enterprise software to customers such as councils, government departments, universities, and large organisations. These customers need dependable systems for finance, payroll, property, student management, compliance, and reporting.

That type of software may not sound exciting, but I think it can be extremely valuable.

Once these systems are embedded, replacing them can be disruptive. That gives TechnologyOne a strong customer relationship if it keeps delivering.

The shift to software-as-a-service has also strengthened the business model and supported strong annual recurring revenue growth. In the first half of FY26, TechnologyOne reported annual recurring revenue of $598 million, up 17%. SaaS and recurring revenue increased 13% to $299.2 million.

I also like the ambition. Management says the company is on track to surpass $1 billion in annual recurring revenue by FY30 and continues to talk about doubling the business every five years.

That is not guaranteed, but I like businesses that have clear targets, recurring revenue, and multiple ways to grow.

TechnologyOne is also investing heavily in artificial intelligence and its SaaS+ model. If those tools help customers simplify complex operations, the company could become even harder to replace.

Foolish takeaway

I think ResMed and TechnologyOne are two ASX shares worth buying with $5,000.

What I like most is that both companies are building around real customer needs. ResMed is helping address a large healthcare problem that remains underpenetrated, while TechnologyOne is becoming more deeply embedded in organisations that need reliable software to function properly.

Neither share is risk-free. But I think both businesses have enough growth, relevance, and ambition to reward patient investors over time.

The post Why I’d buy and hold ResMed and TechnologyOne shares with $5,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.