Key Superannuation Changes for 2025-26
As your trusted accounting advisors, we want to ensure you're fully informed about the significant superannuation changes that took effect on 1 July 2025. These changes present both opportunities and considerations that may impact your retirement planning strategy.
Superannuation Guarantee Increase to 12%
The mandatory superannuation guarantee (SG) rate has increased from 11.5% to 12% for all eligible employees. This represents the final increment in the gradual increase that began in 2021-22 when the rate was 9.5%.
What this means for you:
Employers: You must now contribute 12% of your employees' ordinary time earnings to their superannuation funds
Employees: Your superannuation contributions will increase automatically, providing additional retirement savings
Business owners: Review your payroll systems and budgets to ensure compliance with the new rate
We recommend reviewing your payroll processes to ensure accurate implementation of the new rate.
Transfer Balance Cap Rises to $2 Million
The personal transfer balance cap (TBC) has increased from $1.9 million to $2 million for individuals commencing a pension for the first time on or after 1 July 2025.
Planning considerations:
The TBC determines the maximum amount you can transfer from accumulation phase to tax-free pension phase
Amounts exceeding the cap must remain in accumulation phase, where earnings are taxed at 15%
Investment growth within pension accounts can exceed the cap without penalty
Existing pension holders retain their original cap amount
If you're approaching retirement, we can help you develop a strategy to maximise your tax-free pension entitlements within these limits.
Carry-Forward Concessional Contributions Update
The carry-forward provisions for unused concessional contribution caps continue to evolve. From 1 July 2025, the earliest year available for carry-forward amounts is now 2020-21.
Important deadline: Any unused concessional contribution cap from 2019-20 expired on 30 June 2025.
Eligibility requirements:
Total superannuation balance below $500,000 at 30 June of the previous financial year
Unused concessional contribution cap amounts from the past five years
Current annual concessional contribution cap of $30,000
We can review your superannuation history to identify available carry-forward amounts and develop a contribution strategy that maximises your tax benefits.
Proposed Additional Tax on Large Super Balances
While not yet legislated, the government is expected to reintroduce Division 296 tax legislation following the recent election. This proposed measure would impose an additional 15% tax on earnings from superannuation balances exceeding $3 million.
Key features of the proposed legislation:
Additional 15% tax on earnings from amounts over $3 million
Includes unrealised capital gains on assets such as shares and property
Would apply even if assets haven't been sold
Superannuation legislation continues to evolve, and staying informed is crucial for effective retirement planning. Our experienced advisors can help you navigate these changes and develop strategies that align with your long-term financial objectives while ensuring compliance with all regulatory requirements.