As we head into a new financial year, now is the time to start planning super contributions. With several key updates taking effect from 1 July 2025, understanding the options and acting within deadlines can help maximise retirement savings.

The good news is that the Super Guarantee (SG) rate will rise to 12 percent from 1 July 2025.

Concessional contributions are always a key focus for retirement savers and the concessional contributions cap for 2025-26 remains at $30,000. Those with a total super balance (TSB) below $500,000 may be eligible to carry forward unused contributions from previous years, particularly from 2019-20 which must be used by 30 June 2025 or they will expire. This could enable up to $167,500 in contributions, including the current year’s cap.

To claim a tax deduction for personal super contributions, a valid Notice of Intent form must be submitted to the super fund, usually before lodging the tax return or making a withdrawal. The fund must acknowledge the form before the deduction is claimable.

Non-concessional contributions can be made without claiming a tax deduction and are subject to different limits based on the total super balance. However, it is important to review any previous bring-forward periods to avoid unintentionally exceeding the cap.

In 2025-26, contribution limits are:

  • TSB under $1.76 million: can contribute up to $360,000 using the bring-forward rule.
  • TSB between $1.76 million and $2 million: smaller caps apply.
  • TSB $2 million or more on 30 June 2025: no non-concessional contributions allowed.

For those aged 55 or older, downsizer contributions of up to $300,000 per person can be made within 90 days of selling their home. These contributions don’t count toward the non-concessional cap but will affect the TSB.

For small business owners, the CGT cap contribution limit rises to $1.865 million in 2025-26. Timing is critical depending on whether the asset is held personally or via a company/trust.

The TSB also governs how much monetary value is required before one can start a superannuation pension. This is now set at $2 million.

New rules post-election

The proposal to introduce a new tax on super balances over $3 million has been reintroduced following the Labor government’s re-election. In the previous Parliament, without opposition support, the government needed the support of the Greens as well as three independents to pass legislation. Now, the government will potentially only need the support of the Greens in the Senate to pass the legislation.

That means retirement savers could be hit with an extra 15 percent tax on super earnings (realised and unrealised) if their total super balances goes above $3 million. The tax is based on a the fund’s year-end balance.

As the first year of operation will probably be the 2025-26 financial year, it is the member’s adjusted total super balance on 30 June 2026 (not 2025) that will be relevant for this assessment. Someone with more than $3 million in superannuation at the start of, or during, 2025-26, who reduces their balance to less than $3 million by 30 June 2026 will not be impacted by the tax.