New Super Changes in 2025 & What They Mean for You.
Australia's superannuation landscape is undergoing significant changes effective from 1 July 2025. For Australians aged 30 to 55, these shifts represent both opportunities and responsibilities. Understanding what's changing—and how to respond—can have a direct impact on your long-term financial outcomes.
1. Super Guarantee Rises to 12%
One of the most immediate changes is the increase of the Super Guarantee (SG) rate from 11.5% to 12%. This means employers will be required to contribute a larger portion of your salary to your super fund. For a full-time worker earning $100,000 annually, that’s an additional $500 in super contributions each year.
While this change happens automatically via payroll, it’s worth reviewing your current contribution strategy. If you also salary sacrifice or make personal deductible contributions, you may want to reassess your total concessional contributions to ensure you stay under the $30,000 cap and avoid excess contributions tax.¹ ²
Action Steps:
Check with your payroll team that the increase is implemented from 1 July.
Adjust your salary-sacrifice or personal contribution strategy to maintain tax efficiency post-increase.
2. Transfer Balance Cap Increases to $2 Million
The transfer balance cap determines how much of your super you can move into a tax-free retirement pension. As of 1 July 2025, this cap will increase from $1.9 million to $2 million. This is particularly relevant for individuals approaching retirement or considering a transition to retirement strategy.
If your balance is near the current cap, timing your move into the pension phase strategically could unlock an additional $100,000 of tax-free retirement phase room. This change makes it worthwhile to review your retirement strategy, especially if you’re planning to retire within the next five to ten years.³
Action Steps:
Those planning retirement or a TTR (Transition to Retirement) should model outcomes based on pension start dates.
Speak with your adviser to optimise timing to maximise pension benefits.
3. Division 296: 30% Tax on Earnings Over $3 Million
Starting in the 2025–26 financial year, superannuation balances above $3 million will attract an additional 15% tax on earnings, bringing the effective tax rate on those earnings to 30%. While this affects a relatively small number of Australians, it is a pivotal consideration for high-net-worth individuals and dual-income couples with large combined super balances.
If your super is approaching or expected to exceed $3 million, it is essential to forecast your balances and consider restructuring your superannuation investment approach. Speaking to your financial adviser can help you determine whether strategies such as asset segregation or gradual withdrawals are appropriate to manage future tax liabilities. ⁵
Action Steps:
Assess and forecast your total super balance annually.
Consider strategies like asset segregation or recontribution to reduce taxable earnings exposure.
4. Super on Paid Parental Leave
From 1 July 2025, individuals receiving government-funded Paid Parental Leave will also receive superannuation contributions. These contributions are expected to begin flowing into accounts from July 2026.
This change is a major step toward improving long-term financial outcomes for parents—especially women, who are disproportionately affected by career breaks. While the administrative rollout is still pending, it makes sense for expectant or recent parents to stay informed about eligibility and fund reporting to ensure they receive entitlements in full. ⁶
Action Steps:
Parents should track these contributions in their annual super statements.
To maximise benefits, coordinate with partner contributions and potential co-contributions.
5. Payday Super: Quicker, More Transparent
Although not commencing until mid-2026, the Payday Super reform is worth noting now. This change will require employers to pay super at the same time as wages, rather than quarterly. The aim is to improve transparency and ensure faster allocation of contributions.
While there is nothing to action yet, understanding how this will affect your fund’s reporting and cash flow visibility can help you stay ahead. Employers and employees alike should prepare for operational adjustments in advance of implementation.
Action Steps:
Ask your fund how they’ll manage contributions under this change.
No action needed now, but stay informed for system updates.
How to Stay Ahead of the Changes
The changes taking effect from 1 July 2025 are not merely regulatory adjustments—they represent an evolution in how Australians build and protect retirement wealth. To make the most of them, ensure your super contributions are in line with your income strategy, consider timing pension phase entries strategically and start discussions early if your super balance could trigger Division 296 taxation.
With the right strategy, these changes can help strengthen your retirement position and maximise tax efficiency during peak earning years. Now is the time to review your super plan, seek professional advice, and position yourself for a stronger financial future.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial, tax, or investment advice. We recommend speaking with a qualified financial adviser before making any decisions regarding your superannuation. Every individual’s financial situation is unique, and personalised advice is essential to ensure the best outcome for your specific circumstances.
