If you’re managing a Self-Managed Super Fund (SMSF), staying ahead of regulatory and tax changes is crucial. Several superannuation policy updates will take effect from 1 July 2025, and many of them will impact how you contribute, manage, and transition your super benefits.
Here’s what you need to know—and how Boa & Co. Chartered Accountants can support you in navigating these important changes.
1. Super Guarantee to Increase to 12%
From 1 July 2025, the Super Guarantee (SG)—the percentage your employer must contribute to your super—will increase from 11.5% to 12%. This change means more retirement savings going into your account over time.
2. Paid Parental Leave to Include Super Contributions
Eligible individuals receiving government-funded Paid Parental Leave (PPL) will now receive superannuation contributions during their leave from 1 July 2025. This is a major step toward improving long-term retirement outcomes for parents, especially women.
3. Higher Tax on Super Balances Above $3 Million
The government has proposed increasing the concessional tax rate on future earnings for super balances above $3 million from 15% to 30%, effective from 1 July 2025. While this measure has not yet been legislated as of April 2025, SMSF members with significant balances should prepare accordingly.
4. Transfer Balance Cap to Rise to $2 Million
The Transfer Balance Cap (TBC) determines how much super you can move into a tax-free retirement phase pension account. From 1 July 2025, this cap will rise from $1.9 million to $2 million, providing greater flexibility for high-balance members transitioning into pension phase.
5. Concessional Contributions – What’s Changing
The concessional contributions cap (before-tax contributions) will remain at $30,000 for the 2025–26 financial year.
If your total super balance (TSB) is under $500,000 on 30 June 2025, you may use carry-forward rules to contribute unused amounts from the previous five years, allowing a total concessional contribution of up to $167,500 in 2025–26. This can result in substantial tax savings for eligible members.
Unused contributions from 2019–20 will expire on 30 June 2025 and must be used before then.
6. Non-Concessional Contributions & TSB Threshold Adjustments
The non-concessional contributions (NCC) cap—contributions made from after-tax income—will remain at $120,000, and the bring-forward rules will allow up to $240,000 (2 years) or $360,000 (3 years), depending on your super balance.
From 1 July 2025, the TSB thresholds will change. For example:
- Those with a TSB of $2 million or more will no longer be eligible to make any NCCs.
- Members with a TSB under $1.76 million may still access the full three-year bring-forward cap of $360,000.
Understanding these new thresholds is vital when planning non-concessional contributions.
7. Exit Option for ‘Legacy’ Retirement Products
In December 2024, the government introduced a five-year window for individuals to exit certain legacy superannuation pensions. These include:
- Lifetime pensions or annuities
- Life expectancy pensions or annuities
- Market-linked pensions or annuities
To qualify, the pension must have started before 20 September 2007 or resulted from a conversion of an earlier pension.
Members may fully exit these legacy products and:
- Commence a new account-based pension
- Roll funds back into accumulation phase
- Withdraw as a lump sum outside the super system
Partial commutations are not permitted, and SMSF trust deeds may need updating to allow for these changes.
Professional Guidance Is Essential – Let Boa & Co. Help You Navigate SMSF Changes
With superannuation rules becoming more complex, expert advice can make all the difference in protecting your wealth, optimising contributions, and staying compliant.
At Boa & Co. Chartered Accountants, we specialise in SMSF structuring, tax planning, and compliance. Whether you’re affected by these policy updates or simply want to make the most of your retirement strategy, we’re here to help.
For personalised advice and expert support, contact us today:
Call us on 1300 952 286,
Email [email protected],
Or visit www.boanco.com.au to book a consultation.
Let us help you stay in control of your super, minimise tax, and secure your financial future.