super changes from 1 July 2025

Starting 1 July 2025, a range of superannuation changes are set to take effect. Here’s what’s changing and how it may impact your super.

More super for you - the Super Guarantee rate increasing

From 1 July, the minimum amount employers must contribute to employees’ super each year – the Super Guarantee (SG) – will rise from 11.5% to 12%. This means more money going into your super account, giving your retirement savings a welcome boost.

Learn more about SG and employer contributions in How super works (PDF).

Contributions caps remain unchanged

For the 2025-26 financial year, the amount you can contribute to your super each year without incurring a higher tax rate (contributions caps) will remain the same. The concessional (before-tax) contributions cap will stay at $30,000 per financial year, and the non-concessional (after-tax) contributions cap will remain at $120,000 per financial year.

Keep in mind, if you haven't used your full before-tax contributions cap in the past five financial years, you might be able to contribute more than $30,000 this financial year by carrying forward those unused amounts - provided your total super balance was under $500,000 in the last 2024-25 financial year. Check your unused contributions cap amounts via your myGov account. Learn more on the ATO website.

Transfer balance cap set to rise

Effective 1 July 2025, the general transfer balance cap will increase to $2 million. This cap limits the total superannuation an individual can transfer into the retirement phase for a tax-effective income stream.

Please note, you may have a personal transfer balance cap if you have previously commenced an income stream account, which may differ from the general transfer balance cap. You can check your myGov account to see how this may apply to you.

Total super balance thresholds

As the general transfer balance cap increases, the total super balance (TSB) thresholds that determine whether you're eligible to make non-concessional (after-tax) contributions are also changing. These new TSB thresholds will also dictate the maximum amount you can contribute after tax and if you can access the bring-forward rule. Learn more about the 2025-26 financial year TSB thresholds via the ATO website.

Superannuation on government-funded Paid Parental Leave

Following years of advocating, we’re pleased to finally see the commencement of super contributions for parents being paid on the government's Paid Parental Leave (PPL) scheme - for children born or adopted on or after 1 July 2025. The ATO will handle these payments, which will be calculated based on the PPL received. These super contributions will be deposited directly into your super fund account starting from July 2026, after the end of the relevant financial year. This measure aims to improve the retirement outcomes for parents, predominantly women, who often take time out of the workforce to care for young children.

Proposed tax changes for higher balances

A potential future change under consideration by the government involves increasing the tax rate on earnings within superannuation accounts with balances exceeding $3 million to 30%. Currently, these earnings are generally taxed at 15%.

However, this measure is still undergoing parliamentary processes and its implementation by 1 July 2025 remains uncertain.