Recent Superannuation Changes To Understand

STAFFORD, Australia - Aug. 21, 2025 - PRLog -- The superannuation guarantee (SG) rate officially rose to 12% of ordinary time earnings (OTE) from the beginning of the current tax year. This is the final step in the gradual increase legislated under previous reforms. So what exactly has changed?

What's changed?

Old rate: 11.5% (up to 30 June 2025)
New rate: 12% (from 1 July 2025)

This increase affects cash flow, payroll accruals and employment contracts, especially where total remuneration includes superannuation.

Here's an employer checklist you can use:

*Update payroll software: ensure systems are calculating 12% SG correctly from 1 July 2025 pay runs

*Review employment agreements: if contracts are set to inclusive of super, the take-home pay of employees may reduce unless renegotiated or the employer decides to bear the cost of the increased SG rate

*Budget for higher super contributions: consider possible cash flow impacts

*Remember that significant penalties can be imposed for late or incorrect SG payments, including loss of deductions, interest and other administration charges.

Personal Superannuation contributions

The annual concessional contribution cap will remain at $30,000 for the 2025/2026 financial year. The annual non-concessional contribution (NCC) cap is set at four times the concessional contribution cap meaning it will also remain at $120,000.

Although the annual NCC cap has not changed, NCCs can now be made by individuals with a total super balance (TSB) of less than $2,000,000 on 30 June 2025 (assuming they have not reached the age 75 deadline and any prior bring forward periods are considered). This is due to the fact that the upper TSB limit links to the general transfer balance cap (TBC) which has increased to $2,000,000.

To learn more, visit our website - https://mcfillin.com.au/super-rates-thresholds-updates/.
Book an appointment with our Stafford-based team of experienced accountants.