With the new financial year comes a fresh wave of superannuation changes that could make a real difference to your retirement savings.
Let’s talk about what’s changing and how you can make the most of it.
The Super Guarantee (SG) rate hits 12%
One obvious lift to retirement incomes is the increase in the Super Guarantee rate from 11.5 per cent to 12 per cent – For you, that means more going into your super account.
For your employer, that means they must now pay 12 per cent of your ordinary time earnings into your chosen super account. So, it’s a good idea to check your first payslips for the new financial year to make sure the changed rate has been applied.
If you have a salary sacrifice arrangement, note that the SG calculation applies to your total salary, as if the arrangement was not in place.
For a quick update on what the change will look like for your super balance, check the MoneySmart calculator.
More for retirement phase
From 1 July 2025, the limit on how much super you can move into the retirement phase, tax-free – known as the general transfer balance cap (TBC), has increased from $1.9 million to $2 million.
For example, if you started a pension with $2 million on 1 July 2025, you’ve used your full cap. The cap doesn’t limit the amount you can hold in super – it just won’t receive the same tax-free treatment.
You can check your cap in ATO online services, which records all the debits and credits that make up your balance.
Special rules apply for defined benefit income streams.
More qualify for after-tax contributions
The change in the general TBC to $2 million may also allow you to increase non-concessional (after-tax) contributions using the bring-forward rule. While the $120,000 annual limit on non-concessional contributions hasn’t changed, eligibility for using the bring-forward rule now applies to those with a total superannuation balance below the general TBC of up to $2 million.
The rule allows you to bring forward the equivalent of one or two years of your annual non-concessional contributions cap ($120,000), allowing you to make contributions two or three times more than the annual cap.
No change to contribution caps
While more investors may now be eligible to access the bring-forward rule, the caps on both concessional (before tax) and non-concessional contributions haven’t changed.
The tax paid on contributions depends on whether you’re paying from before-tax or after-tax income, you exceed the contribution caps, or whether you’re a high-income earner.
The concessional contributions cap is $30,000 and if you have unused cap amounts from previous years, you may be able to carry them forward to increase your contribution in later years. You can make up to $120,000 in non-concessional contributions each financial year, and you may be eligible for the bring-forward rule allowing up to $360,000 in one contribution.
Next steps
If you’re not sure how the new rules affect you, talk to your trusted Nexia adviser about how to stay ahead and help your superannuation reach its full potential.
