Super changes and opportunities for you and your employees 2025/26
As we get ready to kick off the new financial year, there are some important changes to superannuation that may impact you and your employees. Here’s an overview of what’s changing (or proposed to change) from 1 July and some key super opportunities.
Key changes
Superannuation Guarantee rate is increasing
The Superannuation Guarantee (SG) contribution rate will increase to 12% on 1 July 2025. Employees should review existing salary sacrifice agreements for 2025/26 to take into account the SG increase. Also, the quarterly maximum contribution base on which employers must pay SG contributions will reduce from $65,070 to $62,500, to allow for the SG rate increase.
Transfer balance cap is increasing
From 1 July 2025, the general transfer balance cap (TBC) – that limits how much super can be transferred into tax-free retirement phase pensions over a person’s lifetime – will increase from $1.9m to $2m.
Employees will benefit from the full TBC increase if they have never started a retirement phase pension. This would be most employees, as they would need to have reached age 60 and retired (or met another full condition of release) to start a retirement phase pension.
While some employees may have started a transition to retirement pension with their super, these are not retirement phase pensions unless the employee is aged 65 or over or met a full condition of release before reaching age 65 and notified their superannuation fund.
Some total super balance thresholds are increasing
The total super balance (TSB) thresholds that determine eligibility to make non-concessional super contributions (NCCs) will increase (see table below). This will allow more opportunity to make NCCs for those with higher super balances. For example, to make NCCs of up to $360,000 in 2025/26, the TSB on 30 June 2025 can be up to $1.76m (an increase of $100,000 from $1.66m in 2024/25). Other conditions apply.
| NCC caps | TSB (30 June 2024) |
TSB (30 June 2025) |
|---|---|---|
$360,000 |
< $1.66m |
< $1.76m |
$240,000 |
$1.66m to < $1.78m |
$1.76m to < $1.88m |
$120,000 |
$1.78m to < $1.9m |
$1.88m to < $2m |
| Nil | $1.9m or more | $2m or more |
Higher taxes for balances over $3m (proposed, but not law yet)
The Government has proposed that individuals with a total super balance of more than $3m on 30 June 2026 will pay an additional 15% tax on a portion of investment earnings relating to the amount exceeding $3m.
The Government introduced proposed legislation to Parliament in 2024 to make this change, but the proposed legislation lapsed when the election was called. To implement the change, the Government will need to reintroduce and pass the legislation in Parliament. The new Parliament is expected to meet for the first time on 22 July 2025.
Key super opportunities
A new financial year presents a new opportunity to make additional super contributions, subject to the contribution caps and other eligibility criteria. Some ways your employees may be able to boost their super are summarised in the table below.
| Strategy | How to use it | Possible benefits |
|---|---|---|
Get more from salary or bonus by salary sacrificing into super |
Arrange to contribute pre-tax salary into super as part of a salary sacrifice agreement |
|
Add to super and claim a tax deduction |
Make an after-tax super contribution and notify the fund how much is to be claimed as a tax deduction |
|
Split super contributions with spouse |
Split certain pre-tax super contributions made in the prior financial year with the spouse |
|
Convert non-super savings into super savings |
Make an after-tax super contribution |
|
Get a super top-up from the Government |
Make an after-tax super contribution |
|
Boost spouse’s super and reduce tax |
Make an after-tax contribution into an eligible spouse’s super account |
|
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This communication is issued by NULIS Nominees (Australia) Limited (NULIS) (ABN 80 008 515 633, AFSL 236465. NULIS is the trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd (ABN 49 100 103 722) and its related bodies corporate (Insignia Financial Group). Plum Super and MLC MasterKey Business Super (MKBS) are part of the MLC Super Fund.
The information is of a general nature only and has been prepared without taking into account any of you or your employees’ objectives, financial situation and needs. Before making a decision based on this information, you and your employees should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. You and your employees should read the relevant Product Disclosure Statement (PDS) and consider whether the product is right before making a decision to acquire or to continue to hold the product. A copy of the relevant PDS and Target Market Determination (TMD) is available on the website at mlc.com.au or by calling us on 132 652.
Neither NULIS, nor any other related or associated company guarantees the repayment of capital, the performance or any rate of return of, an investment with NULIS. While care has been taken in preparation of this communication, NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you or your employees in respect of any error, omission, or misrepresentation in this communication.
An investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested. Past performance is not an indication of future performance.
