Australia will introduce several superannuation changes from July 1st, 2025. These changes aim to improve long-term savings for retirement. Some rules will take effect from that date. Others, however, will remain proposed awaiting approval.
In this blog, we will explain the changes clearly and simply. If you need further help, our Geelong financial advisors can support you with whatever questions you may have.
Confirmed superannuation changes for 2025-26
The super guarantee (SG) rate will increase
The SG rate will increase from 11.5% to 12% from July 1st. As a result, employers must now pay a larger amount into super. This contribution is based on your regular earning, in addition to your usual wages. The government introduced this increase as the final step in a five-year plan.
If you need help looking through your salary package, our financial advisors in Geelong can help you.
Transfer balance cap will increase
From July 1st, the transfer balance cap will rise from $1.9 million to $2 million. This means retirees will be able to move more money into a tax-free account. This change is part of the confirmed superannuation changes.
You can move up to $2 million from your accumulation account into a pension account. However, if you go over, you must keep your extra in your accumulation account, where earnings attract a 15% tax.
Your pension account can grow past $2 million without penalties. However, your initial transfer must remain within the limit. If you’re preparing to retire, you can ask our financial advisory team for guidance.
Grow your super
This update is one of the most helpful superannuation changes for people catching up on contributions. However, if you’re unsure how it applies to you, please speak with one of our financial advisors in Geelong.
Proposed superannuation changes for large balances
The government plans to tax balances over $3 million
This government intends to apply a 15% tax on earnings over the $3 million super threshold. This would include unrealised gains such as shares or property, even if you haven’t sold them. This proposal has not been made into law, but the government has said it plans to reintroduce the bill.
If you hold a high super balance, our financial advisory team in Geelong can help you prepare. In fact, they can help you reduce tax and make informed decisions. These proposed superannuation changes may only apply to a small group, but planning now can help you stay ahead.
Plan for superannuation changes
These superannuation changes could affect your retirement plan and contribution limits. Therefore, you should review your position carefully. By planning early, you can take advantage of these super updates and avoid last-minute pressure. In addition, timely action may help you reduce tax and grow your super. As a result, you’ll enter retirement with more confidence. For this reason, we recommend getting the right support.
Our Geelong accountants and financial advisors work with individuals like you every day. We can help you grow your super balance and secure your future. To speak with our financial advisors in Geelong, please call LBW at (03) 5221 6111 or visit our website www.lbwca.com.au.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
