Super changes from 1 July – and what you need to know
30 June 2025
Superannuation rules don’t stand still – the Government regularly fine-tunes the system to support better retirement outcomes for Australians.
Understanding what’s ahead can help you make smarter decisions about your retirement savings. At Brighter Super, we’re here to keep you informed and prepared.
Here’s a summary of the key super changes taking effect from 1 July 2025, and what they could mean for you.
1. Superannuation Guarantee rate to increase to 12%
The Superannuation Guarantee (SG) is the minimum amount employers must contribute to an eligible employee’s super account, based on a percentage of their ordinary time earnings.
From 1 July 2025, the SG rate will increase from 11.5% to 12%, marking the final step in a series of legislated increases.
Some employees may be entitled to a higher super contribution under an award or employment agreement. If so, the higher rate must be paid.
While a 0.5% increase may seem small, over time it can make a significant difference to your retirement savings thanks to the power of compound growth.
2. Super to be included in Paid Parental Leave
From 1 July 2025, superannuation will be included in the Government’s Paid Parental Leave scheme – an important move toward closing the gender super gap.
If you're an eligible parent with a baby born or adopted on or after 1 July 2025, and you receive government-funded parental leave pay, you'll also receive a super contribution equal to 12% of your parental leave payment.
This contribution will be paid by the Australian Taxation Office (ATO) as a lump sum, with interest, after the financial year in which you received the payment. Payments will begin from 1 July 2026.
This change helps parents – particularly women – build their super at a time when paid work and contributions often pause due to caring responsibilities.
To learn more, visit the ATO’s website for details about superannuation on Parental Leave Pay.
3. Transfer Balance Cap to increase to $2 million
From 1 July 2025, the Transfer Balance Cap will increase from $1.9 million to $2 million. This is the lifetime limit on how much super you can transfer into a retirement income stream, such as a Brighter Super Pension account, where investment earnings are tax-free.
This change is linked to movements in the Consumer Price Index (CPI) and is designed to keep pace with the rising cost of living, helping to preserve the value of your retirement savings.
Your personal cap may differ, so be sure to check your details in your myGov account.
4. Increased contribution opportunities for higher balance members
As a result of the Transfer Balance Cap increase, the Total Super Balance (TSB) threshold will also rise from $1.9 million to $2 million, as the two are directly linked.
For some individuals – particularly those who were previously above the threshold – the higher limits may create new opportunities to contribute more to super.
Your TSB is calculated on 30 June each year and affects your eligibility for a range of contribution strategies, including:
- Making non-concessional (after-tax) contributions.
- Accessing the bring-forward rule.
- Receiving the spouse tax offset.
5. Government co-contribution income thresholds are changing
The Government co-contribution is designed to help low- and middle-income earners grow their super. If you're eligible and make personal (after-tax) contributions during the financial year, the Government may add a co-contribution of up to $500, depending on your income.
From 1 July 2025, the income thresholds used to calculate eligibility will increase, although the maximum entitlement remains unchanged.
| Financial year |
Lower income threshold |
Higher income threshold |
Maximum entitlement |
| 2024/25 |
$45,400 |
$60,400 |
$500 |
| 2025/26 |
$47,488 |
$62,488 |
$500 |
This incentive is a simple way to boost your super – especially if you’re on a modest income.
For further information, see our guide on super support for low and middle-income earners or visit the ATO website for details on super-contributions.
6. Super contributions for high-income earners
If you’re a high-income earner, there’s a change that could affect how much super your employer contributes on your behalf.
From 1 July 2025, the Maximum Super Contribution Base will decrease from $65,070 to $62,500 per quarter. This cap sets the maximum earnings on which employers must calculate Superannuation Guarantee (SG) contributions.
This is the first time in many years that the cap has been reduced.
For 2025/26, if you earn more than $62,500 in a quarter, your employer is not required to pay SG contributions on the portion above that cap – unless your employment agreement states otherwise.
Other important information
The following points are not changing on 1 July 2025 or are proposed but not yet legislated. We'll continue to monitor developments and keep you updated.
a. Contribution caps are staying the same for 2025/26
Contribution caps will remain unchanged for the 2025/26 financial year – these are the annual limits on how much you can contribute to your super without paying extra tax.
Here are the current caps:
-
Concessional contributions: $30,000 per year
Includes Superannuation Guarantee (SG) contributions, salary sacrifice, and personal contributions you claim a tax deduction for.
To learn more, including eligibility to carry forward unused caps, read about the concessional contributions cap on the Australian Taxation Office (ATO) website1.
-
Non-concessional contributions: $120,000 per year
These are voluntary after-tax contributions, also known as personal contributions, paid from your own money.
To learn more, including eligibility for the bring-forward arrangement, read about the non-concessional contributions cap on the ATO website.
Further information is also available on our website:
b. Proposed tax on super balances over $3 million
The Government has proposed a new tax which could apply to individuals with super balances over $3 million. If legislated, it will be known as the Division 296 superannuation tax.
Under the proposal, a 15% tax would apply to earnings – including unrealised gains – on the portion of a person’s total super balance above $3 million.
At time of publishing (30 June 2025), this proposal has not yet been passed into legislation and may be subject to change. We will continue to keep members informed of any updates.
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For members with a Defined Benefit account, a formula is used to calculate the value of concessional contributions. These are called your notional taxed contributions – refer to your account guide on PDS and guides.
Brighter Super Trustee (ABN 94 085 088 484 AFS Licence No. 230511) ("Trustee") as trustee for Brighter Super (ABN 23 053 121 564) ("Fund"). Brighter Super may refer to the Trustee or the Fund as the context may be. Brighter Super products are issued by the Trustee on behalf of the Fund. The information contained is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling 1800 444 396, or by emailing info@brightersuper.com.au.
This article may contain general advice, which has been prepared without taking into account your individual objectives, financial situation or needs. As such, you should consider the appropriateness of the advice to your objectives, financial situation and needs before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any decision to acquire any product or contribute additional amounts to your Brighter Super account. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs, FSG and TMDs at brightersuper.com.au/pds-and-guides.
