8 May 2025
The new financial year brings important superannuation changes that employers need to be aware of. Being informed about these changes will help you meet your super obligations and support your employees' retirement savings.
Summary of changes, from 1 July 2025:
| Super changes | 2024/25 FY | 2025/26 FY | Changes |
|---|---|---|---|
| SG rate | 11.5% | 12% | Increase |
| Concessional contributions cap | $30,000 | $30,000 | No-change |
| Non-concessional contributions cap | $120,000 | $120,000 | No-change |
| Maximum super contribution base | $65,070 per quarter | $62,500 per quarter | Decrease |
| Transfer Balance Cap | $1.9 million | $2.0 million | Increase |
| Total Super Balance | $1.9 million | $2.0 million | Increase |
Superannuation Guarantee (SG) rate
The Superannuation Guarantee (SG) rate will increase from 11.5% to 12% from 1 July 2025. This means employers will need to contribute a minimum of 12% of an employee's ordinary time earnings to their super.
This increase represents the final step in the legislated gradual increases to the SG rate. Some employees may have a higher percentage of super agreed by an award rate or employment agreement. If this is the case, you need to pay the higher amount.
If you need help calculating how much super to pay, you can use the Australian Taxation Office's (ATO) Super guarantee contributions calculator.
Super contributions caps
For FY26, the concessional contributions cap will remain at $30,000 and the non-concessional contributions cap will stay at $120,000.
These caps are important to note when employees are considering voluntary contributions, such as after-tax or salary sacrifice arrangements or when offering additional super benefits beyond the standard SG contributions. However, the monitoring of contribution limits is primarily the employee's responsibility, not the employer's.
Maximum super contribution base
For the first time in a while, the maximum super contribution base will decrease in FY26 to $62,500 per quarter. This is the maximum amount of ordinary time earnings that employers need to use when calculating super contributions for an employee.
This change is particularly significant for employers with high-income employees. With the 12% SG rate, the maximum quarterly SG contribution will be $7,500 per quarter ($62,500 × 12%).
Employers should review their payroll settings for employees with higher salaries to ensure compliance with this revised cap.
Transfer Balance Cap and Total Super Balance changes
The general transfer balance cap is a limit on the total amount of superannuation that can be transferred into the retirement phase. From 1 July 2025 this cap increases from $1.9 million to $2.0 million.
Similarly, the Total Super Balance cap (includes all super and retirement phase accounts)for employees will increase from $1.9 million to $2 million. This cap is used to determine eligibility for:
- Non-concessional contributions and the bring-forward arrangement
- Carry-forward concessional contributions
- Spouse tax offset
- Government co-contributions
For the full list of cap limits and tax on super contribution visit ATO’s website.
While these caps primarily affect individual rather than employers directly, they may impact employees' decisions about additional contributions.
The impact of super changes
It’s important for employers to review their current superannuation processes, especially with payday super is still slated to commence on 1 July 2026.
As an employer, you play a critical role in paying compulsory super for your eligible employees. You can stay on top of the latest super changes, including Payday super, by visiting our Changes to superannuation webpage.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.