Sydney, June 13, 2025
Australians are set to receive a notable boost to their retirement savings as a key change to the Superannuation Guarantee comes into effect from July 1. Under this change, employers will now be legally required to contribute 12 per cent of a worker’s ordinary time earnings to their superannuation, up from the current 11.5 per cent.
While the 0.5 per cent increase may appear modest at first glance, financial experts say it will have a significant long-term impact, particularly for younger workers.
Financial adviser Nicole Gardner, founder of Stellar Wealth, explained that the effects of compound interest mean that even small increases in super contributions can grow into substantial sums over time.
“It depends how old the person is. For someone in their 20s, the compounding effect of that extra 0.5 per cent over the next 40 years is huge,” Ms Gardner said in a recent video posted on social media.
The change is part of the Federal Government’s broader effort to strengthen retirement outcomes for Australians, ensuring better financial security in later life. The Superannuation Guarantee rate has been progressively increasing in recent years, with this latest increment representing another step towards the long-term target of 12 per cent.
Alongside this, the Albanese government is also pushing ahead with its proposed tax on super balances exceeding $3 million, allowing affected individuals to pay the tax directly from their super fund. This proposal has sparked debate, but it remains focused on ultra-high balances that affect a small fraction of the population.
As the July deadline approaches, workers are encouraged to review their super statements and consider how even small increases can contribute meaningfully to their future wealth.
