New Superannuation Rules : Starting June 1, 2025, major changes are being introduced to Australia’s superannuation system. These updates are designed to improve retirement outcomes, increase transparency, and ensure that both employees and retirees get the best value from their retirement savings. Whether you’re still working, nearing retirement, or already drawing a pension, understanding these new rules is critical.
What Are the New Superannuation Rules from June 1, 2025?
The Australian Government has announced a set of new regulations that will impact employer contributions, fund transparency, withdrawal conditions, and tax treatments on super balances. These changes aim to align superannuation with modern workforce needs and ensure better fund performance and protection.
Key Changes Effective June 1, 2025:
- Increase in Super Guarantee (SG): SG rate rises from 11% to 11.5%
- Higher concessional contribution cap: Now $30,000 annually (up from $27,500)
- Account stapling expansion: Extended to more employment types
- Mandatory retirement income strategy disclosure
- Tighter fund performance benchmarks
- Stricter rules on early access due to financial hardship
- Tax on balances above $3 million remains in place
Who Is Affected by These Changes?
- Employees: Will benefit from higher SG contributions and better fund performance tracking.
- Employers: Must adjust payroll systems to comply with increased contribution rates.
- Retirees: Need to assess the new retirement income strategies and disclosure formats.
- Self-Managed Super Funds (SMSFs): May face increased reporting and compliance obligations.
Super Rules Before and After June 1, 2025
| Feature/Rule | Until May 31, 2025 | From June 1, 2025 |
|---|---|---|
| Super Guarantee (SG) Rate | 11% | 11.5% |
| Concessional Contribution Cap | $27,500 | $30,000 |
| Account Stapling Coverage | Limited to permanent jobs | Covers casual & part-time |
| Performance Test Scope | MySuper only | Includes all choice funds |
| Disclosure on Retirement Strategies | Not mandatory | Now mandatory |
| Early Access Conditions | Basic documentation | Stricter eligibility rules |
| High Balance Tax | Above $3M taxed | Remains unchanged |
| Reporting for SMSFs | Annual basic returns | More detailed reporting |
How Will Superannuation Contributions Be Affected?
From June 1, the Super Guarantee (SG) rate will rise to 11.5%, meaning employers will need to contribute more to their employees’ super accounts. This increase is part of a scheduled move to reach 12% by 2026. Employees may see a slight reduction in take-home pay if their salary is offered as a total package including super.
Contribution Caps – What You Can Now Add Annually
The concessional (pre-tax) contribution cap will rise to $30,000 per year, giving Australians more room to grow their super while enjoying tax benefits. This cap includes employer contributions and salary sacrifice amounts.
Updated Super Contribution Limits 2025-26
| Contribution Type | Previous Limit (2024-25) | New Limit (2025-26) |
|---|---|---|
| Concessional Contributions | $27,500 | $30,000 |
| Non-Concessional Cap | $110,000 | $120,000 (index-linked) |
| Bring-forward Rule Limit | $330,000 over 3 years | $360,000 over 3 years |
Changes to Retirement Income Strategies
Super funds are now required to publish retirement income strategies for their members. These plans must include:
- Projected income during retirement
- Risk assessment and product options
- Tailored advice for longevity planning
This change aims to help retirees make better decisions about income streams and annuities.
New Rules for Early Access to Super
Under the revised framework, stricter eligibility rules apply for early super withdrawals on financial hardship grounds:
- Enhanced documentation required
- Income tests applied
- More oversight to prevent misuse
This is intended to protect retirement savings and reduce long-term dependency.
Performance Benchmarks and Fund Rankings
All super funds—including choice products—will now be measured against annual performance benchmarks. Funds that consistently underperform will be:
- Marked on the ATO portal
- Required to disclose performance clearly to members
- Barred from accepting new members if failing 2 years in a row
FAQs on New Superannuation Rules
Q1. Do I need to switch funds because of these changes?
A: No, but you should check your fund’s performance via the MyGov or ATO portal regularly.
Q2. Will I be taxed more on my super?
A: Only if your balance exceeds $3 million, as the tax on high balances still applies.
Q3. What happens if my employer doesn’t increase SG to 11.5%?
A: They may face penalties. You can lodge a complaint through the ATO website.
Q4. Can casual workers now keep their super fund?
A: Yes, account stapling now applies to casual and part-time employees.
Q5. Is this the final SG increase?
A: No, the SG rate will rise to 12% by July 2026 as per the scheduled roadmap.
Departmental Contact Information
For any queries or complaints, contact the relevant authority below:
Australian Taxation Office (ATO) – Superannuation Division
Phone: 13 10 20 (Mon–Fri, 8am–6pm AEST)
Website: www.ato.gov.au/super/
Mail: Australian Taxation Office, GPO Box 9845, Your Capital City
Department of the Treasury – Retirement Policy Division
Phone: (02) 6263 2111
Website: www.treasury.gov.au
Email: [email protected]
Conclusion of New Superannuation Rules
The upcoming superannuation rule changes from June 1, 2025, represent a major shift in how Australia prepares for retirement. With enhanced employer obligations, clearer fund accountability, and more tools for retirees, this reform encourages a stronger, more reliable future for all Australians. It’s time for both workers and retirees to review their plans, track fund performance, and make informed financial decisions.
