No new superannuation measures were announced in the 2025-26 Australian Federal Budget – here’s what you need to know:
Payday superannuation set to proceed
From 1 July 2026, Government intends to proceed with introducing major reforms to the Superannuation Guarantee regime, requiring employers to align payment of an employee’s Superannuation Guarantee contributions within seven days of paying the employee’s salary and wages.
These payday superannuation measures were first announced by the Treasurer on 2 May 2023 in the 2023-24 Federal Budget. Draft legislation was released by Treasury just prior to the 2025-26 Budget on 14 March 2025.
The measures remove the current quarterly due dates, replacing the date of liability to seven calendar days from when the employee is paid. Unlike current provisions, the revised Superannuation Guarantee charge (including both on time and late contributions, plus an administrative uplift component) will be tax deductible – however, the introduction of non-deductible general interest charges and penalties aim to encourage employers to pay on time.
Superannuation Guarantee increase to 12%
The Superannuation Guarantee rate is set to increase from the current 11.5% to 12% from 1 July 2025 onwards.
This is the final increase to the Superannuation Guarantee rate based on previous legislation.
This is an opportunity for employers to review their existing payroll systems and processes to ensure accurate reporting and payment of the increased rate in the new financial year. Employers should also consider the potential impact of the draft Payday Super legislation that is proposed to take effect from 1 July 2026.
Silence on proposed reduction to superannuation concessions
There is currently draft legislation before the Senate to reduce the tax concessions available to individuals with a total superannuation balance exceeding $3 million (known as the ‘Division 296 tax’), with effect from 1 July 2025. The 2025-26 Budget papers were silent on the Government’s stance regarding the future of this measure.
If enacted, the measures propose to apply an additional tax rate of 15% on the amount of earnings relating to the proportion of an individual’s total superannuation balance that exceeds $3 million.
Broadly, the deemed calculation for earnings would encompass both actual and unrealised capital gains.
Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15% or less under the existing rules.
For more information on how the rules are proposed to operate, please read our article: Division 296 Tax: the proposed $3m super tax.
