10 Things You Need to Know About Your Superannuation in 2025

Australia's superannuation system is undergoing significant changes in the 2025/26 financial year. Whether you're just starting your career or approaching retirement, understanding these updates is crucial for effective financial planning. Here's a breakdown of the key changes and what they mean for you.

1. Super Guarantee Increases to 12%

   Effective from July 1, 2025, the Superannuation Guarantee (SG) rate has risen from 11.5% to 12%, and the general transfer balance cap will also increase from $1.9 million to $2 million. This increase will boost retirement savings for most workers, especially those under award or enterprise agreements. However, employees with total remuneration packages that include super may see a reduction in their net pay. It's advisable to review your employment contract to understand how this change affects you.

   
   

2. Super on Paid Parental Leave

   From July 1, 2025, superannuation contributions will be paid on government-funded Paid Parental Leave. This means that the 12% SG will apply to the parental leave payments, helping to grow your retirement savings during this period.

   
   

3. New Super Tax for Balances Over $3 Million

   A new tax will apply to superannuation balances exceeding $3 million. This measure aims to ensure that the super system remains equitable and sustainable. If your balance is approaching this threshold, it's advisable to consult with a financial advisor to understand the implications and potential strategies.

   
   

4. Contribution Caps Remain Unchanged

   The concessional contributions cap remains at $30,000, and the non-concessional contributions cap stays at $120,000 for the 2025/26 financial year. These caps limit the amount you can contribute to your superannuation while enjoying tax concessions. Exceeding these caps can result in additional tax liabilities.

   
   

5. Payday Super Starts in 2026

   Starting July 1, 2026, employers will be required to pay superannuation contributions at the same time as salary and wages, rather than quarterly. This change, known as "Payday Super," aims to improve retirement savings for employees and ensure super is paid on time. It particularly benefits those in lower-paid, casual, and insecure work who are more likely to miss out when super is paid less frequently.

   
   

6. Unpaid Super Enforcement Strengthened

   The Australian Taxation Office (ATO) is receiving additional funding to ensure timely payment of tax and superannuation liabilities. This initiative, known as the Tax Integrity Program, will focus on medium and large businesses and wealthy groups, aiming to recover unpaid superannuation over five years from 2024–25.

   
   

7. Increased Superannuation Thresholds

   Several superannuation thresholds are set to increase from July 1, 2025, based on the Australian Bureau of Statistics' Average Weekly Ordinary Time Earnings (AWOTE) and Consumer Price Index (CPI) figures. These adjustments are designed to keep pace with inflation and wage growth, ensuring the super system remains effective and equitable.

   
   

8. Paid Practical Placements Now Compensated

   Student practical placements in key welfare and education disciplines will now be paid, starting July 1, 2025. This change aims to support students during their placements and ensure fair compensation for their work.

   
   

9. Superannuation on Centrelink Payments

   Superannuation contributions will now be paid on certain Centrelink payments, including Paid Parental Leave. This change ensures that individuals receiving these payments continue to build their retirement savings during periods of financial support.

   
   

10. Ongoing Superannuation Reforms

    The Australian government continues to review and reform the superannuation system to ensure it meets the needs of all Australians. Staying informed about these changes and seeking professional advice when necessary can help you make the most of your superannuation and secure a comfortable retirement.

    
    
    
    

The 2025/26 financial year brings significant changes to Australia's superannuation system. Understanding these updates and how they affect you is crucial for effective retirement planning. Whether you're just starting your career or approaching retirement, staying informed and seeking professional advice can help you navigate these changes and make the most of your superannuation.