Super Changes from 1 July 2025: What You Need to Know
- Future Accounting
- Jun 20
- 2 min read
Updated: Jun 21
Prepare Now for 5 Key Super Reforms Impacting Employers and Individuals
Significant changes to Australia's superannuation system are set to take effect from 1 July 2025. These reforms aim to enhance retirement savings, improve equity, and ensure long-term sustainability.
This article summarises the key changes and what they mean for individuals and employers.
1. Superannuation Guarantee (SG) Rate Increase to 12%
The Superannuation Guarantee rate will rise from 11.5% to 12% of an employee's ordinary time earnings.
Employers must apply the 12% rate to all eligible salary and wages paid on or after 1 July 2025, regardless of when the work was performed.
2. Transfer Balance Cap (TBC) Increase to $2 Million
The general Transfer Balance Cap, which limits how much can be transferred into a tax-free retirement income stream, will increase from $1.9 million to $2 million. This allows individuals to hold more superannuation in the tax-free retirement phase.
3. Introduction of Additional Tax on Super Balances Over $3 Million
From 1 July 2025, individuals with total superannuation balances exceeding $3 million will incur an additional 15% tax on earnings related to the portion above this threshold. This effectively increases the tax rate on earnings for that portion to 30%.
4. Superannuation Contributions on Paid Parental Leave
Eligible parents receiving government-funded Paid Parental Leave (PPL) for children born or adopted on or after 1 July 2025 will have super contributions made on their behalf. Actual contributions will commence from 1 July 2026.
5. Contribution Caps Remain Unchanged
• Concessional Contributions Cap: $30,000 per year.
• Non-Concessional Contributions Cap: $120,000 per year.
Eligible individuals can still use the bring-forward rule to contribute up to $360,000 over three years, subject to their total super balance.
These upcoming changes highlight the importance of proactive planning. Employers and individuals should assess their superannuation strategies to ensure they are prepared for the reforms and to optimise their retirement outcomes.
We're here to help you navigate the upcoming superannuation changes with confidence.
Reach out to today for personalised advice tailored to your situation - keeping you compliant, maximising benefits, and planning for a smarter for the future.
