With July 1 fast approaching, many Australians are hearing mixed messages about changes to superannuation—some true, others completely false. At Boa & Co. Chartered Accountants, we’re here to clear the confusion and ensure you’re well-informed and financially prepared.
Superannuation is a hot topic in 2025—especially with changes just around the corner. If you’ve heard rumours about big reforms, you’re not alone. But while some updates are real and important, others are nothing more than myths.
One of the most talked-about updates is the new tax rule for large super balances. But there are also smaller updates you should be aware of—and a few myths you definitely shouldn’t believe.
So, what’s actually changing on July 1, and what’s just noise? Let’s break it down.
What’s Actually Changing?
From 1 July 2025, a few key changes will take effect in Australia’s superannuation system:
1. Superannuation Guarantee (SG) Rate Increase
Your employer will now contribute 12% of your ordinary earnings into your super fund—up from 11.5%. This is the final step in a series of planned increases that began in 2021.
Good news for employees: More super savings for your retirement without lifting a finger.
2. Superannuation on Paid Parental Leave
For the first time, Australians on government Paid Parental Leave will receive super contributions. This long-awaited change supports equity and helps reduce the super gap between genders.
3. Increased Transfer Balance and Defined Benefit Income Caps
Due to indexation, the general transfer balance cap (the limit on how much you can move into a tax-free retirement account) and defined benefit income cap will also increase.
The $3 Million Super Tax: What You Need to Know
Here’s the change that has generated the most discussion—and some confusion.
Starting July 1, superannuation accounts with balances over $3 million will face a new 15% tax on earnings above that threshold. This is in addition to the existing 15% tax already applied to most super earnings.
How it Works – An Example:
- Let’s say your super balance is $4 million
- It grows to $4.5 million during the financial year (i.e. $500,000 earnings)
- Since one-third of your balance is over $3 million, one-third of the earnings ($166,667) is taxed at the new rate
- Result: You pay an additional $24,750 in tax
This rule only affects the wealthiest 0.5% of Australians—about 80,000 people.
If your balance is under $3 million, this tax doesn’t affect you at all.
What’s Not True: The Myths Debunked
Unfortunately, misinformation has been spreading—particularly on social media and in online forums.
Let’s be crystal clear:
There are NO changes to:
- The preservation age (still 60 for most people)
- Your ability to withdraw super at retirement
- Imposed withdrawal limits for retirees
These are completely false rumours, and the Australian Tax Office (ATO) has publicly labelled them as “classic fake news.”
Boa & Co. Can Help You Plan Ahead
Superannuation is one of the most important retirement assets you’ll ever have—and navigating the rules can be complex, especially when changes like these occur.
At Boa & Co. Chartered Accountants, our expert team is here to help you:
- Understand how these changes may affect you or your business
- Maximise tax savings within your super
- Plan your contributions and withdrawals strategically
- Stay compliant and avoid unnecessary penalties
Whether you’re nearing retirement, managing a high-balance super fund, or just starting out in your career, now is the perfect time to review your strategy.
Let’s Talk
If you have questions about your superannuation—or simply want to make sure you’re on the right path—reach out to Boa & Co. Chartered Accountants today.
You can contact us at 1300 952 286, email [email protected], or visit our website at www.boanco.com.au to book a consultation.
Let’s make your retirement savings work smarter, not harder.