Kylie
Big changes are coming for millions of Australians as superannuation updates take effect from July 1, 2025. These changes will influence how much you save for retirement, when you can access your funds, and what your employer must contribute.
Whether you’re nearing retirement or just starting your career, understanding the new rules is essential to plan wisely and maximize your super.
Let’s break down every key detail, update, and adjustment in the new superannuation framework for July 2025.
Super Guarantee Rate Increases to 12%
One of the most significant updates is the final stage of the super guarantee increase. The employer contribution rate is rising from 11.5% to 12%. That means for every dollar earned, employers must contribute 12 cents into the employee’s super fund.
This increase affects all eligible Australian employees and is a substantial boost to retirement savings over time. It also marks the completion of the gradual plan to elevate superannuation rates for better retirement outcomes.
New Superannuation Contribution Caps
With the increased contributions, there are also updated caps on how much you can contribute to your super per year—both pre-tax and after-tax.
| Contribution Type | 2024-25 Limit | 2025-26 Limit |
|---|---|---|
| Concessional (pre-tax) | $27,500 | $30,000 |
| Non-concessional (after-tax) | $110,000 | $120,000 |
| Bring-forward (3-year rule) | $330,000 | $360,000 |
These new contribution limits allow Australians to grow their super faster—particularly those who are in a position to contribute larger amounts or catch up after time out of the workforce.
Preservation Age Now 60
From 1 July 2025, the preservation age—the minimum age at which you can access your super—will be officially set at 60 for anyone born on or after 1 July 1964. Previously, the preservation age ranged from 55 to 59 depending on the birth year.
This change simplifies access rules but also means individuals may need to wait longer before tapping into their super. For those turning 60 in or after July 2025, this age becomes the official threshold for retirement access.
Expanded Eligibility for Super Contributions
A new rule ensures that employees under 18 years old who work more than 30 hours per week will now receive employer contributions at the full 12% rate.
Previously, some young workers weren’t entitled to super due to work hour thresholds. This update guarantees that more young Australians start building their retirement savings earlier in life.
No More $450 Monthly Threshold
In previous years, employees had to earn at least $450 per month from one employer to qualify for super contributions. That threshold has now been completely removed, ensuring that even low-income and part-time workers get super contributions—regardless of how much they earn.
This change is especially beneficial for casual, part-time, and gig economy workers, who may have missed out on contributions in the past.
Superannuation on Paid Parental Leave
Starting from July 2025, the government will begin making super contributions on Paid Parental Leave payments. This is a significant win for working parents, particularly women, who often face reduced super balances due to time off for childcare.
These contributions will be made annually and ensure that time taken for family growth doesn’t penalize future retirement savings.
Who Benefits from These Changes?
- Young Australians gain super from earlier employment and higher contribution rates.
- Low-income earners now get super, regardless of how little they earn per month.
- Working parents gain contributions during paid parental leave.
- Retirees-in-waiting must plan around the preservation age now being 60.
- High earners benefit from increased contribution caps, enabling more tax-effective investing in super.
| Change | What’s New from July 2025 |
|---|---|
| Super Guarantee Rate | Increased from 11.5% to 12% |
| Preservation Age | Set to 60 years for all |
| Pre-tax Contribution Cap | Raised to $30,000 |
| After-tax Contribution Cap | Raised to $120,000 |
| Bring-forward Cap | Raised to $360,000 (over 3 years) |
| Young Workers’ Eligibility | <18s working 30+ hrs/week get super |
| $450 Monthly Threshold | Abolished |
| Paid Parental Leave Contributions | Now includes superannuation |
The July 2025 superannuation changes are comprehensive and designed to provide a more inclusive and financially secure retirement system for all Australians.
From higher employer contributions and increased caps to support for parents and young workers, these updates make it easier than ever to build long-term savings.
Whether you’re nearing retirement or just starting out, these reforms provide the opportunity to re-evaluate your retirement strategy and ensure you’re maximizing your future income. Take advantage of these updates and stay informed—your future self will thank you.
FAQs
Will my employer automatically start paying 12% super from July 2025?
Yes, employers are required to increase their super guarantee contributions from 11.5% to 12% of your ordinary time earnings starting 1 July 2025.
How does the preservation age change affect me?
If you were born on or after 1 July 1964, you will need to be at least 60 years old to access your superannuation. Plan your retirement strategy accordingly.
Can I contribute more to my super in 2025-26?
Yes, the contribution caps have increased: concessional cap to $30,000 and non-concessional to $120,000, giving you more room for strategic super investment.