The Australian government’s superannuation changes for the financial year 2025 (FY25) bring important updates that employers need to understand to ensure compliance and support their employees’ retirement savings. These changes, aimed at strengthening the superannuation system, involve adjustments to the Superannuation Guarantee (SG) rate and contribution caps
Increase in superannuation guarantee rate
One of the most significant changes in FY25 is the increase in the Superannuation Guarantee (SG) rate. Since 1 July 2024, the SG rate has risen from 11% to 11.5%, as part of a phased approach to reaching the target rate of 12% by July 2025. This increase requires employers to adjust their payroll systems to reflect the new rate, ensuring that employees receive the correct superannuation contributions.
Failing to comply with the updated SG rate could result in penalties for employers, including additional charges and interest on unpaid contributions. Therefore, it is crucial for businesses to stay ahead of these changes by reviewing their payroll processes and making necessary updates well before the deadline.
Concessional contributions cap
For FY25, the concessional contributions cap has increased to $30,000 up from $27,500. Concessional contributions include compulsory employer contributions, salary sacrifice contributions, and voluntary contributions for which an employee claims a tax deduction. While the cap has increased, it remains important for employers and employees to be aware of it to avoid exceeding the limit, which could result in additional tax liabilities.
Employers may wish to communicate this information to their employees, particularly those who are making voluntary contributions, to ensure they understand the implications of exceeding the cap.
Payday super
While payday super is not yet legislated, it is proposed to start for employers on 1 July 2026. Under payday super, employers will be required to pay their employees’ super at the same time as their salary and wages.
Before it comes into effect, there’s an opportunity for businesses to prepare for any changes, including looking at the impacts on business cashflow of super being paid at the same time as the regular pay cycle.
Staying informed and compliant
Staying informed about these superannuation changes is essential for employers to manage their obligations effectively and support their employees’ financial well-being. AustralianSuper recommends that employers regularly review their payroll systems, contribution processes, and communication strategies to ensure compliance with the updated regulations.
The FY25 superannuation changes introduce key adjustments that require attention from employers. By understanding and implementing these changes—such as the increase in the SG rate and the awareness of the concessional contributions cap will ensure businesses are prepared as these changes come into effect.
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