How to inflation-proof your household budget in 2026
The Reserve Bank of Australia (RBA) has increased the cash rate by another 25 basis points this month, bringing it to 4.10%. Interestingly, it was a split decision with four members voting to keep it on hold and five members voting increase. The key takeaway being that inflation is proving stubborn.
It’s also worth noting this decision was made before factoring in the escalating conflict in the Middle East, which has already pushed petrol prices higher and may place further upward pressure on inflation.
Changes that may impact you…
March brings the usual round of indexation updates, along with a few important changes worth keeping on your radar:
- Maximum Full Age Pension Increase (20th March)
Single Age Pension ~+$22.2 pf [$577.20 pa]
Couples: ~+16.70 pf (each) [$868.40 pa combined]
This will see over 5 million Australians get a boost
- Deeming rates are rising (20th March)
This is the second increase in deeming rates since 2020, as rates have been frozen at historically low levels. The lower deeming rate threshold is $64,200 for singles and $106,200 for couples combined.
- Lower deeming rate: 1.25% p.a. (previously 0.75% p.a.)
- Upper deeming rate: 3.25% p.a. (previously 2.75% p.a.)
Due to a higher deeming your income test may be impacted as “assessed income” goes up which can reduce your pension or affect aged care fees.
- Changes to superannuation (1st July 2026)
- Concessional contribution caps increase to $32,500
- Non-concessional contribution caps increase to $130,000
- Non-concessional bring forward max to $390,000
- Total Super Balance thresholds increase
- General transfer balance cap increases from $2.0m to $2.1m
- Maximum contribution base increases from $250,000 ($62,500 per quarter) to $270,830.
Important Updates
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A reminder that Jayden will be taking around a month of parental leave in April. Our team will keep an eye on his emails and if you need assistance, just call the office on 08 9250 5599.
Emma will be having a week of leave over the April School holidays.
Kathy will be taking 3 weeks of leave in May.
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We’ve been working behind the scenes on a new and improved advice document format.
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If you have an account with Asgard, it will be migrating to BT Panorama on 21 March 2026.
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