Australia’s superannuation system is undergoing significant changes, most notably the super guarantee rate increasing from 11.5% to 12%. This marks the final planned increase in the percentage of payroll employers contribute to superannuation. This change is projected to substantially increase the number of retirees with adequate retirement savings, although the full impact will take decades.
Another key change is the increase in the transfer balance cap, rising by $100,000 to $2 million. This represents the limit for superannuation funds transferred into retirement phase. Additionally, superannuation payments will now be included in the government’s Parental Leave Pay, adding 12% of the payment to the parent’s super fund. Parental Leave Pay is also increasing to 24 weeks, eventually reaching 26 weeks by July 2026. These changes coincide with other financial year updates, including the non-deductibility of interest on overdue tax debts, expected to boost tax revenue by $500 million in 2026 and 2027.
