Increased Superannuation Guarantee (SG) rate
From 1st July 2025, the Superannuation Guarantee (SG) rate will rise from 11% to 11.5%, continuing the legislated path to 12% of base earnings by 2026.
What you can do:
-
Review employer payroll systems to ensure the correct rate is applied from 1 July.
-
Educate your small business clients about budgeting for the increased super contributions.
-
Help clients assess the impact on take-home pay for salary-sacrificing arrangements.
Indexation of contribution caps
From 1st July 2025, both concessional and non-concessional contribution caps will increase due to indexation. The revise caps are:
-
Concessional cap: rising from $27,500 to $30,000
-
Non-concessional cap: increasing from $110,000 to $120,000
-
The bring-forward cap will rise to $360,000
What you can do:
-
Identify any clients who can benefit from the higher contribution limits, especially high-income earners and those nearing retirement.
-
Run super contribution forecasts and optimise the use of the bring-forward rule.
- Help your clients manage tax-effective contributions in line with their broader wealth plans.
Earnings tax for super balances over $3 million
The Australian Government has confirmed its intention to proceed with the 15% additional tax on earnings from super balances above $3 million, starting 1st July 2025.
What you can do:
-
Flag high net wealth clients who may be affected.
-
Conduct modelling projected earnings and potential tax liabilities.
-
Explore strategies with your clients such as rebalancing asset holdings, using family trusts or finding ways to diversify their retirement planning beyond just superannuation.
Removal of the $450 monthly income threshold
Although technically in effect from 2022, accountants are still encountering clients unaware that the $450 per month minimum threshold for SG contributions has been removed.
What you can do:
-
Educate your clients who employ casual or part-time staff on their ongoing SG obligations.
-
Review historical payroll compliance to ensure there are no missed contributions.
-
Assist with rectification processes where super entitlements have been overlooked.
Downsizer super contributions
From 1st July 2025, the eligibility age for downsizer super contributions remains 55 and older, following changes made in prior tax years.
What you can do:
-
Inform older clients considering selling their homes about the ability to contribute up to $300,000 per person into super.
-
Review the downsizer strategy as part of broader estate and retirement planning for your clients.
-
Clarify eligibility rules, especially where clients have previously used other contribution strategies.
Best practice advice for accountants
Here are just a few ways that accounting practices can advise their clients around superannuation changes each tax time:
-
Be proactive in your client communications: Engage with your clients early in the tax planning process to discuss superannuation changes in 2025, rather than waiting until the last minute.
-
Stay up to date with the changes: Keep up with any compliance changes or updates related to superannuation.
-
Think about the opportunity: If you’re not doing so already, the 2025 super changes are a great opportunity to offer value-add advisory services focused on retirement and strategic year-end planning.
Conclusion
The superannuation landscape in Australia is always evolving, and 2025 has brought some small changes that may significantly impact your clients in the long term.
Whether it's managing contribution strategies, or compliance obligations, your expertise will be critical to ensure that your clients have superannuation that works hard to maximise their future retirement plans.