From 1 July 2025, a range of superannuation and tax-related thresholds are increasing. These changes bring new planning opportunities—but also a few important things to be aware of. Here’s a quick summary of what’s changing and what it might mean for you:
Super Guarantee (SG) now 12%
Employers will need to contribute 12% of ordinary time earnings into employees’ super funds. If you’re a business owner, make sure payroll systems are updated. For employees, this is a boost to long-term retirement savings.
Concessional Cap: $30,000
This is the cap for tax-deductible super contributions—including employer SG and salary sacrifice. The increase from $27,500 gives you more room to reduce your taxable income while boosting your super.
Non-Concessional Cap: $120,000
This is the limit for after-tax contributions. With the bring-forward rule, eligible individuals could contribute up to $360,000 over three years. Remember, you must have a total super balance under the Transfer Balance Cap to be eligible for this.
Transfer Balance Cap: $2 million
This cap limits how much you can transfer into a tax-free retirement phase pension. If your balance is under this threshold, you may have more flexibility in drawing tax-free income.
Defined Benefit Income Cap: $125,000
For those receiving income from defined benefit pensions, this is the amount before excess tax may apply.
CGT Cap Amount: $1,865,000
For small business owners selling assets and contributing proceeds to super, this is the new maximum CGT cap amount—ideal for retirement planning.
Co-contribution Income Thresholds: $47,488 – $62,488
For low to middle-income earners, government co-contributions remain available within these new income thresholds. A small personal contribution could trigger up to $500 from the government.
If you’re unsure how the changes might affect you, or you’d like to take advantage of the new limits before 30 June 2026, now is a great time to speak with your accountant or licensed adviser. Let’s plan smartly for the financial year ahead.
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