With much of this year’s Federal Budget firmly focused on measures to deliver cost-of-living relief, no changes specifically affecting super were announced, and even pension deeming rates are set to remain as they are. But there are still a few changes already slated to take effect from 1 July 2025 that it’s worth being across…
No changes to deeming rates
In delivering the 2025 Federal Budget, Treasurer Jim Chalmers confirmed that pension deeming rates will remain frozen for another year. This will allow pensioners to retain more of their Centrelink payments. The current federal deeming rate is 0.25% for the first $62,000 of total financial investments for a single person, or $103,800 for a couple, and 2.25% for any assets exceeding those thresholds.
Changes to super from 1 July 2025
Super Guarantee increases to 12%
From 1 July 2025 the super guarantee (SG) rate increases to 12%. This is the last of the incremental SG increases introduced by the Rudd-Gillard government, which began in 2015.
Super on government paid parental leave
On 19 September 2024, Parliament legislated paying super on government-funded paid parental leave.
As a result, from 1 July 2025, eligible parents with babies born or adopted on or after that date will receive an SG payment (calculated at 12% of the total parental leave payment), with the contribution to be paid into the recipient’s nominated bank account on 1 July 2026.
Reduced tax concessions for super balances over $3 million
And still in the legislative pipeline is the proposed change that from 1 July 2025, those with super balances over $3 million will be subject to an additional tax of 15% (on top of the existing 15%), on their super earnings. The additional tax will only apply to the portion of the account balance that’s over the $3 million threshold.
Looking for more Budget news?
While it may have been light on any super-related announcements, the Budget outlined several other measures. You’ll find full details at budget.gov.au.
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