Changes to super

New rules from 1 July 2025

1 July 2025 marked the start of the 2025/26 financial year and brought several important changes to super rules.

As a new financial year begins, it’s important to stay on top of changes to super rules and what they may mean for you.

Superannuation Guarantee rate increased to 12%

On 1 July 2025 individuals receiving Superannuation Guarantee (SG) contributions saw an increase in the SG rate of 11.5% to 12% - helping to further boost their retirement savings and secure their financial future.

This is the final legislated increase to the SG rate.
Super on paid parental leave

Parents who receive the government-funded Parental Leave Pay (PLP) for a child born or adopted* on or after 1 July 2025, will also be paid super in addition to the PLP. The amount will be 12% of their PLP, in line with the SG rate.

The payment will be made following the end of each financial year in which the government PLP was paid. You don’t have to do anything to receive the payment.

^{* or regarded as having been born on or after this date for the purposes of the Paid Parental Leave Act 2010}
Super co-contribution income limits updated

Income thresholds for the government’s co-contribution scheme increased by a little over $2,000 from 1 July 2025.

If your annual income for the 2025-26 financial year is below $62,488 – and you make an after-tax contribution to your super – the government may add up to $500 to your super. Visit the ATO’s website for more information on co-contribution limits.

If you qualify for the super co-contribution and you’ve made an after-tax contribution in the relevant financial year, the Australian Tax Office (ATO) will automatically contribute to your super account once you complete your tax return, provided we hold your TFN on file. There’s nothing else you need to do.

You can learn more about the super co-contribution, including eligibility criteria by reading our dedicated factsheet.
Maximum contribution base reduction

From 1 July 2025, the maximum earnings that an employer needs to pay SG on will decrease to $62,500 per quarter ($250,000 per year).

The maximum contribution base is the highest earnings amount an employer has to pay SG contributions on for their employees, for each quarter.

With the SG rate now at 12.0%, the maximum contribution base was reduced to ensure that employers don’t pay more than $7,500 in SG contributions each quarter. This change helps ensure that no one inadvertently goes over the $30,000 concessional contribution cap from SG alone.

Employers should review their payroll settings for employees with higher salaries to ensure compliance with this revised cap.
Transfer Balance Cap increased

The general Transfer Balance Cap, which is the limit on the amount of superannuation that can be transferred into retirement phase accounts (where earnings are tax free), rose from $1.9 million to $2 million from 1 July 2025.

A little extra today can go a long way tomorrow

With a number of these changes potentially meaning more money in your super, take a moment to consider how much income you’re on track to receive when you retire.

The Retirement Income Simulator can help you visualise what your retirement income could look like, how long it might last and how adding even just a little bit extra to your super today, can go a long way tomorrow.

Simulate my retirement income

_{Issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533, Australian Financial Services Licence 235906, the trustee of the Mercer Super Trust ABN 19 905 422 981(‘Mercer Super’). Any advice provided is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice we recommend you obtain your own financial advice and consider the Product Disclosure Statement and Financial Services Guide available at mercersuper.com.au. The product’s Target Market Determination setting out the class of people for whom the product may be suitable can be found at mercersuper.com.au/tmd.}

_{Any information on tax or references to legislation in this document is based on our interpretation of current laws which are subject to change. We recommend you obtain your own tax or other professional advice when considering the application and impact of tax laws or other laws that may affect you. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by Mercer or any of its related entities for any loss or damage arising from reliance on the information.}

_{We strongly recommend that you obtain advice from a licensed or appropriately authorised financial or tax adviser about how tax laws affect you, especially if you are considering making large contributions or retiring because the tax treatment of super is complex and may change at any time.}

_{Our priority is to keep you informed about the changing superannuation landscape. For up-to-date financial planning tools and investment option resources, visit the Contact Us page at www.mercersuper.com.au}

_{If you are considering making any changes to your superannuation, we recommend seeking advice from a licensed, or appropriately authorised financial adviser before taking action. As a Mercer Super Trust member, you have access to limited financial advice at no extra cost.}

_{Mercer Financial Advisers are authorised representatives of Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence 411766. The trustee has appointed MFAAPL to provide financial advice services for members of the Mercer Super Trust.}