- Federal Budget 2025-26
- Federal Budget 2024-25
- Superannuation Legislation 2024-25
Federal Budget 2024-25
While a large part of the 2024-25 Federal Budget is aimed at cost-of-living relief, there are several important announcements relating to superannuation. Below is a summary of the latest measures along with previously announced changes to super. It’s important to note that some of these changes are now legislated to take place. Others will need to become law before they can be implemented.
For super members / retirees
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Super on Government funded paid parental leave
Superannuation will be paid on Government funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025.
Payments will be made annually to individuals’ super funds from 1 July 2026. This will help to reduce the impact of career breaks to care for young children on superannuation balances.
Analysis by the Super Members Council (SMC) shows a mother of two who received super on the Scheme would be $14,500 better off in retirement. A mother of one child would be $7,500 better off (Superannuation Members’ Council, 2024-25 Pre Budget-Submission, January 2024).
AustralianSuper has campaigned for this change for many years as a measure to help address structural inequalities that contribute to lower superannuation balances for women at retirement.
The start date for this measure is 1 July 2025 with the Government estimating that approximately 180,000 families per year will benefit from superannuation on paid parental leave.
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Deeming rates frozen
As part of the 2024-25 Federal Budget, the Treasurer announced a 12-month extension to 30 June 2025 of the current freeze in deeming rates for retirees.
This measure will assist part pensioners with bank deposits, investments and also super pension income streams which are captured under the deeming rules. The measure will allow retirees to benefit from increases in interest rates and returns without reductions in their age pension.
The deeming rate has been frozen for the last two years with the top rate unchanged at 2.25%.
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Previous super announcements
Super guarantee
From 1 July 2024, the super guarantee, that is - the percentage of your wage that your employer is required to pay into your super account, will increase from 11.0% to 11.5%. The super guarantee will continue to rise in 0.5% increments until it reaches 12% in 2025.
Refer to the Australian Taxation Office (ATO) website for full details.
Changes to super tax concessions
On 28 February 2023, the Australian Government announced from 1 July 2025 a 30% concessional tax rate will be applied to future earnings for superannuation balances above $3 million, instead of the current 15%. This measure is not yet law.
Detailed information can be found in the Treasury Superannuation Concessions fact sheet.
Increase in super contribution caps
From 1 July 2024, both concessional and non-concessional contributions caps will be increasing as follows:
Contribution caps 2023-24 2024-25 Concessional Contributions Cap $27,500 $30,000 Non-Concessional Contributions Cap $110,000 $120,000 Bring forward $330,000 over 3 years $360,000 over 3 years The total super balance for non-concessional contributions, remains at $1.9 million. The general transfer balance cap also remains unchanged at $1.9 million.
Full details on concessional caps can be found ATO website.
Full details on non-concessional caps can be found ATO website.
Payday super
From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. This delayed start date provides employers, super funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change. This measure is not yet law.
Details on Payday super can be found on the ATO website.
For employers
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Support to administer paid parental leave
The Federal Government committed to providing $10 million over two years from 2024–25 to provide additional support for small business employers in administering paid parental Leave.
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Payday super and productivity measures
A further $60 million was committed over four years from 2024–25 to increase the Productivity, Education and Training Fund to support practical activities by employer and worker representatives to boost workplace productivity and engage in tripartite cooperation. This will also support workplaces to implement policy changes such as the introduction of payday superannuation.
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Previous super announcements
Payday super
From 1 July 2026, employers will be required to pay their employees’ super at the same time as their salary and wages. The start date will provide employers, super funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change. This measure is not yet law.
Details on Payday super can be found on the ATO website.
Super GuaranteeAs of July 1 2024, the super guarantee, will increase from the current rate of 11.0% to 11.5%. The super guarantee will continue to rise in 0.5% increments until it reaches 12% in 2025.
Super recovery programThe Government has committed to recalibrating the Fair Entitlements Guarantee Recovery Program to deliver increased benefits to employees. The Government will actively pursue unpaid superannuation guarantee charge (SGC) amounts owed by employers who have entered liquidation or bankruptcy, for employees that have applied for Fair Entitlements Guarantee assistance.
For further details on this initiative refer to Department of Employment and Workplace relations website.
Additional support for ATOThe Government has also confirmed $187 million will be allocated over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems.
For further details refer to the Portfolio Budget Statement.
For more information
As well as measures relating to super, the 2024-25 Federal Budget includes full details on the stage 3 Tax Cuts and a range of cost-of-living measures including a $300 energy bill rebate, an increase in all Commonwealth Rent Assistance maximum rates by 10% from September 20, 2024 and changes to the way HELP loans will be indexed.
Full details on all measures announced in the latest and past Federal Budgets can be found here.
Sources:
- Super Members Council (SMC) – Federal Budget 2024-25 Summary and 2024-25 Pre Budget-Submission, January 2024
- Australian Taxation Office (ATO)
- Australian Treasury
- Department of Employment and Workplace Relations
- Treasury website
