Super changes for FY 25-26: What you need to know

Confirmed 1 July 2025 changes

• Transfer Balance Cap is increasing

  What’s changing?

  On 1 July 2025, the general Transfer Balance Cap — the limit on how much you can move from your super into the retirement phase — will increase from $1.9 million to $2 million.

  Who does it apply to?

  This increase will benefit people who haven’t yet used up their transfer balance cap. 

  What’s the impact?

  You may be able to move more of your super into the tax-free retirement phase, depending on your circumstances.

  Need more info?

  Visit the ATO website to find out how the cap works and how it may apply to you.

• Super Guarantee is increasing to 12%

  What is it?

  The Super Guarantee is the minimum percentage of your earnings that your employer must contribute to your super.

  What’s changing?

  On 1 July 2025, the Super Guarantee rate will increase from 11.5% to 12% of your before-tax earnings. 

  Will this affect me?

  If you're a member of the Australian Public Service or Defence Force, you may already be receiving more than the minimum — so this change may not impact your take-home super. Still, it’s a great time to check your super and make sure you’re on track for your future. View your contributions today!

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• Super on Paid Parental Leave is coming!

  What’s new?

  On 1 July 2025, super will be paid on government-funded Parental Leave Pay.

  How will it work?

  This new contribution, called the Paid Parental Leave Superannuation Contribution (PPLSC), will be paid at the minimum Super Guarantee rate (12%) of your Parental Leave Payments.

  Where will it go?

  It will be paid by the ATO directly into your super account — just like your employer contributions.

  Why does it matter?

  It means your super keeps growing while you’re off work with a new child — helping to close the retirement gap for new parents.

Potential upcoming changes 

Proposed extra 15% tax on super over $3 million

What is it?

The government plans to introduce an additional 15% tax on investment earnings for people with super balances over $3 million — across both accumulation and retirement accounts. This has not passed into law yet. 

How will it work?

• Investment earnings on the portion of your balance over $3 million would attract an additional 15% tax.
• The portion under $3 million would remain taxed at the current rate.

When does it start?

This has not yet passed into law, but if it does, it could potentially start on 1 July 2025. The first calculation won’t happen until 30 June 2026.

Should I do anything now?

There’s time to review your super arrangements if you believe this may apply to you. Given the complexity, consider speaking with a licensed financial adviser.