Superannuation in Australia is Changing: Here’s What You Need to Know in 2025

If you’re running a business, managing payroll, planning for retirement or doing all three you can’t afford to ignore what’s coming on July 1, 2025.

Australia’s superannuation system is undergoing its biggest update in years, and whether you’re an employer, employee, or adviser, these changes are going to affect how money moves, how it’s taxed, and how we plan for the future.

At NCS Global, we’ve broken down the updates you can’t afford to miss and more importantly, what you should do about them.

 The Super Guarantee Rate Rises to 12%

After years of incremental changes, the Super Guarantee (SG) rate will finally hit 12% on July 1, 2025.

That means employers must now contribute 12 cents for every dollar an employee earns (up to the maximum contribution base). For employees, this represents a direct boost to retirement savings potentially translating to an extra $125,000 over a working life for someone earning $100,000 annually.

For employers, however, this means more than just changing a number in payroll. Budgeting, payroll systems, and even cash flow models may need reviewing especially for SMEs without in-house compliance teams.

Many businesses are turning to outsourced superannuation and payroll services to stay ahead of these updates without overloading internal resources.

 New Tax for Super Balances Over $3 Million

One of the most high-profile reforms: individuals with super balances exceeding $3 million will face a new 30% tax on earnings above that threshold.

This measure only affects around 80,000 Australians but it signals a clear policy shift. Super is increasingly being viewed not just as a retirement vehicle, but as a public policy lever for fairness and sustainability.

For high-net-worth individuals and SMSF holders, this introduces a new layer of complexity. Portfolio rebalancing, capital gains timing, and strategic withdrawals will all need a closer look.

Transfer Balance Cap Rises to $2 Million

Here’s some good news for those approaching retirement.

The Transfer Balance Cap the limit on how much you can move into a tax-free pension phase will increase from $1.9 million to $2 million. This gives retirees more flexibility in managing income streams and planning estates more effectively.

Financial advisers and SMSF trustees should proactively discuss this change with clients in the lead-up to FY2026, as it opens opportunities that weren’t previously available.

 Contribution Caps Hold Steady But Watch the Clock

While contribution caps remain unchanged $30,000 for concessional and $120,000 for non-concessional the catch-up window is closing.

If you’ve been carrying forward unused concessional caps from the 2019–20 financial year, this is your last chance to use them before they expire at the end of 2024–25. For those who had inconsistent income due to career breaks or COVID, this could be a valuable window to boost super contributions.

 Paid Parental Leave Will Finally Include Super

For the first time, superannuation will be paid on Commonwealth Paid Parental Leave, starting from July 1, 2025 (with payments commencing in 2026).

This reform addresses one of the biggest equity gaps in the super system, giving a significant boost to women and carers who historically missed out during leave periods.

Estimates suggest that over 180,000 families per year will benefit helping close the gender super gap and improving long-term financial security for primary carers.

 Deeming Rates Frozen Until June 2026

While not a direct change to superannuation, the freeze on deeming rates has a major impact on Age Pension assessments.

This extension offers retirees more predictability in income testing, which combined with the other changes adds some much-needed stability to retirement planning.

 Coming Soon: Payday Super from July 2026

One future change that deserves early planning: from July 2026, super will need to be paid on payday, not quarterly.

This move aims to reduce unpaid super issues and improve compounding returns for employees. But for employers, it means major updates to payroll workflows and those changes start now, not later.

What Should You Be Doing Now?

Whether you're running a business or managing personal wealth, preparation is key. Here's a quick checklist:

 For Employers:

• Update your payroll software to reflect the 12% SG rate

• Communicate the change to employees early

• Start preparing for payday super requirements in 2026

 For Employees:

• Check your super balance and review your contribution history

• Use remaining carry-forward concessional contributions if eligible

• Discuss potential impacts of the $3M cap with a financial planner

 For Advisers & SMSFs:

• Reassess client strategies around the $3M earnings tax

• Help clients optimise their Transfer Balance Cap strategies

• Start planning for the operational implications of payday super

The Bottom Line

These superannuation changes are about more than compliance they represent a real shift in how we think about retirement, equity, and financial responsibility.

For many, this is a wake-up call: super is no longer a passive line item on your payslip or a “set-and-forget” strategy. Staying informed and seeking the right support will be key to making the most of the new rules or avoiding costly oversights.