From 1 July 2025, the superannuation guarantee (SG) rate in Australia increases from 11.5% to 12%. This is the final stage of a plan that began in 2021 to gradually raise the rate and strengthen retirement savings.
What This Means for Workers
Employers now need to contribute 12% of ordinary earnings into their employees’ super funds. While the increase may seem small in the short term, it builds up significantly over a lifetime.
For example, financial experts suggest that a 30-year-old earning $100,000 could end up with around $125,000 more in their super by retirement thanks to this change.
Other Key Superannuation Changes
- Transfer Balance Cap Increase: The cap has risen from $1.9 million to $2 million, allowing people nearing retirement to move more into tax-free retirement accounts.
- Super on Paid Parental Leave: For the first time, government-funded parental leave payments will include super at 12%. This helps parents—especially women—continue building their retirement savings while caring for children.
Why This Matters
These updates strengthen financial security for Australians. More contributions, higher retirement caps, and super on parental leave mean families can look forward to stronger balances and a safer future.
Summary of Key Changes
| Feature | Before 1 July 2025 | From 1 July 2025 |
|---|---|---|
| Superannuation Guarantee | 11.5% of wages | 12% of wages |
| Transfer Balance Cap | $1.9 million | $2 million |
| Super on Paid Parental Leave | Not included | 12% included |
| Retirement Savings Impact | Lower growth | Up to $125k more for an average worker |
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