So, your payslip in July looked a little different this year. Did you notice?
From 1 July 2025, the Superannuation Guarantee (SG) rate officially hit 12%. This wasn’t a surprise move; it’s been coming for years. But now that it’s here, the real question is, have you adjusted to it?
If you’re an employer, this change is already affecting your payroll. If you’re an employee, it’s quietly shaping your retirement savings and maybe even your take-home pay.
The SG Rate Has Already Changed
Before July, the SG rate sat at 11.5%. From July 1, 2025, it became 12% of an employee’s ordinary time earnings. That half a per cent might not sound like much, but across a year, it’s more than just spare change.
If your salary package includes super, the increase may have trimmed your net pay. If your employer covers super on top of your base, you’re probably fine, but don’t just assume. Check your payslip and make sure the numbers add up.
What Employers Should Be Doing Now
If you haven’t already made the switch in your payroll system, you’re playing with fire. The ATO doesn’t just give you a slap on the wrist for underpaying super. You could face extra interest charges, lose your tax deduction, and end up with a bigger bill than you expected.
Here’s what you should have ticked off by now:
- Updated payroll software for the 12% rate
- Reviewed employment contracts to see who is impacted.
- Adjusted budgets to account for higher contributions.
If you’ve skipped any of these steps, it’s not too late to fix it—but the longer you wait, the bigger the headache.
Contribution Caps for 2025–2026
The SG increase isn’t the only number you need to watch. For this financial year, the contribution caps are:
- Concessional cap: $30,000
- Non-concessional cap (NCC): $120,000
- Bring-forward rule: Up to $360,000 over three years, depending on your balance.
Here’s the breakdown based on your Total Super Balance (TSB) as of 30 June 2025:
If you’re close to that $2 million mark, you need to tread carefully. One contribution too many could block you from adding more after-tax money into super.
Claiming Deductions on Personal Contributions
If you’ve made personal after-tax contributions to super and plan to claim a deduction, you need to get the paperwork right.
You must lodge a notice of intent to claim with your fund and receive their acknowledgement before you lodge your tax return or by 30 June next year, whichever comes first.
And if you roll over your super to another fund, withdraw it, or start a pension before lodging the notice, you lose the deduction.
Updated Thresholds for 2025–2026
Several super and tax thresholds changed from 1 July 2025:
Some key limits remain unchanged, including the $30,000 concessional cap, $120,000 standard non-concessional cap, and $360,000 bring-forward maximum over three years.
Why You Shouldn’t Ignore This
For employees, not paying attention could mean missing out on tax benefits or being caught off guard when your take-home pay shifts. For employers, inaction can lead to penalties and cash flow problems.
The SG rate change has already happened. The people who are better off right now are the ones who prepared for it months ago. The next best time to take control is today.
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