Seven Superannuation Changes in 2025 You Should Know
Superannuation rules are always evolving — and 2025 brings several updates that could affect your retirement savings. Whether you’re just starting to build your super or are close to retirement, staying informed helps you make smarter decisions.
Here’s what’s on the horizon.
Contents
- 1 Possible Tax Changes for Large Super Balances
- 2 Super Guarantee Increase from 1 July 2025
- 3 Transfer Balance Cap Increasing to $2 Million
- 4 Total Super Balance Thresholds Will Rise
- 5 Flexibility for Legacy Pensions in SMSFs
- 6 Improved Fund Performance and Transparency
- 7 Tech Innovation in Super: Digital Tools and AI
- 8 Final Thoughts
Possible Tax Changes for Large Super Balances
One of the biggest superannuation changes in Australia 2025 is a proposed extra 15% tax on earnings from super balances over $3 million. If passed, this would apply from 1 July 2025.
The proposal made it through the House of Representatives but hit resistance in the Senate in late 2024, mainly over concerns about taxing unrealised gains and the fixed $3 million threshold. The Senate is set to revisit the bill in February 2025 — and with a federal election looming, its future remains uncertain.
Super Guarantee Increase from 1 July 2025
From 1 July 2025, the Super Guarantee (SG) rate will increase from 11.5% to 12%. This is a confirmed change that means more money going into your super account with every pay cycle.
While this is good news for long-term savings, employees should check if the increase affects their overall salary package, especially if their contract includes super as part of their total remuneration.
Transfer Balance Cap Increasing to $2 Million
The transfer balance cap (TBC) — the limit on how much super can be transferred into a retirement income stream — will rise from $1.9 million to $2 million on 1 July 2025.
If you haven’t yet started drawing a pension from your super, you can benefit fully from this increase. If you already have a retirement income stream in place, your personal cap might increase partially, depending on your situation.
Total Super Balance Thresholds Will Rise
The Total Super Balance (TSB) limits — which affect how much you can contribute using after-tax dollars — will increase alongside the TBC. This impacts eligibility to make non-concessional contributions (NCCs), including use of the bring-forward rule.
Here’s what’s expected from 1 July 2025:
| TSB Range | Max NCC Cap | Bring-Forward Period |
|---|---|---|
| Less than $1.76 million | $360,000 | 3 years |
| $1.76m to less than $1.88m | $240,000 | 2 years |
| $1.88m to less than $2m | $120,000 | 1 year |
| $2 million or more | Nil | N/A |
If your balance nears $2 million, planning contributions before this threshold is reached could unlock extra opportunities.
Flexibility for Legacy Pensions in SMSFs
From December 2024, retirees with legacy pensions in self-managed super funds (SMSFs) — including market-linked, life expectancy and lifetime pensions — will have new flexibility to convert these products.
Previously, these pensions were difficult to restructure. Now, individuals will have five years to review and potentially make changes. This is a great opportunity for those with outdated pension structures to realign with their goals.
Given the complexity, it’s wise to consult an SMSF specialist before taking any action.
Improved Fund Performance and Transparency
In 2025, APRA-regulated super funds will be under pressure to deliver stronger returns and better transparency. Underperforming funds may be forced to merge or face additional scrutiny.
Members can expect:
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More accessible performance data
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Clearer reporting on fees and investment strategy
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Easier fund comparisons
This gives you more control in choosing the right fund for your retirement future.
Tech Innovation in Super: Digital Tools and AI
Technology is changing the super landscape. In 2025, expect to see:
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Smarter mobile apps
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Better dashboards
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Artificial intelligence helping with projections and advice
These tools can make it easier to track your super, set goals, and make well-informed decisions.
If you haven’t already, explore your fund’s online tools — they might surprise you.
Final Thoughts
While some changes are still being debated, others are locked in and ready to roll from 1 July 2025. Understanding these superannuation changes in Australia 2025 can help you prepare, contribute strategically, and make the most of your retirement plan.
If you’re unsure how these updates apply to you, consider speaking with a licensed financial adviser.
WL Advisory is a Chartered Accounting firm. We specialise in accounting, tax, and advisory services for individuals and small businesses. Please visit our website for more information.
Helpful Resource:
Learn more directly from the ATO here:
ATO – Superannuation