Changes to your super in 25/26: how you could be better off

May 21st, 2025

The start of the financial year 2025/26 will see some important changes to super. Here we explain how these changes could affect you, as well as how to make the most of them.

Most people will see a boost to their retirement savings

From 1 July, the rate of compulsory super (known as the Superannuation Guarantee) your employer must pay you is going up to 12%, an increase of 0.5% from 2024/25.

While it might not sound like much, these small amounts can add up in the long-term due to the benefits of investment returns and compound interest. It’s worth checking your employer is paying the correct SG amount by logging into your firstonline account or the app and comparing the payments against your payslips.

If you’re taking government paid parental leave, you’ll get paid super too

From 1 July 2025, parents with babies born or adopted on or after 1 July 2025 who are eligible for government Parental Leave Pay will receive an additional contribution to their nominated super fund. The amount will be 12% of their Parental Leave Pay, in line with the Superannuation Guarantee.

The payment will be made following the end of each financial year in which the government Parental Leave Pay was paid. You won’t have to do anything to receive the payment.

Could you make extra super contributions?

The start of the financial year is a good time to review your finances and consider making extra super contributions if you are able to.

For example, if you receive a pay rise, bonus or want to take advantage of the income tax cuts coming into effect from July 1, you could pay these amounts into your super. There are a few different ways to make extra contributions.

Salary sacrifice is where you arrange for your employer to pay extra money into your super from your pre-tax salary. The benefit is your super payments are taxed at 15% instead of your personal income tax rate, and you are also reducing your taxable income
You can also make payments from your after-tax salary and claim a tax deduction
Or pay a lump sum into your super from your after-tax savings such as your bank account or an inheritance

Our contributions calculator can help you calculate the difference extra contributions can make over time.

Get the government to boost your super

More people could be eligible for the super co-contribution in 2025/26. Designed to boost the savings of low-and middle-income earners, you could receive up to 50c for every dollar you put in after tax, up to a maximum of $500.

If you meet the eligibility criteria, including earning below $62,488 (previously $60,400) and make a voluntary contribution, a co-contribution will automatically be added to your super after you submit your tax return.

Top up your spouse’s super

If your spouse is taking time out of work to care for children, consider topping up their super to bridge the gap. If your spouse earns under $40,000, you could be eligible to top up their super with a spouse contribution and claim a tax offset.

Or you can top up your spouse’s super through contribution splitting. This is where you give your spouse some of your super by transferring a portion from your super account to your spouse’s account.