Key takeaways

• The SG rate which determines the minimum percentage of your salary that your employer must contribute to your super fund,increased to 12.0%
• The annual cap on concessional (before-tax) super contributions remains unchanged at $30,000 per year
• The annual non-concessional (after-tax) super contributions cap remains unchanged at $120,000.

Being aware of these can help you make more informed decisions when it comes to your retirement savings.

Super Guarantee (SG) rate rise

If you are employed in Australia and meet eligibility requirements, you must be paid super by your employer. This is paid on top of your annual salary and is known as the Super Guarantee (SG).

From 1 July 2025, the SG rate increased from 11.5% to 12%.

Super contributions caps

There are a range of strategies you can implement to improve your retirement savings, like putting a little extra money into your super while you’re still working.

Aside from the compulsory employer contributions, you can also make voluntary contributions to your super. These can be either before-tax (concessional) or after-tax (non-concessional).

The more you contribute, the more you'll have when you retire.

The super contribution limits remain unchanged for 2025/26. If you are already salary sacrificing, review your agreement given the increase in SG and the unchanged annual concessional contributions cap.

The concessional and non-concessional contribution caps are summarised below:

Concessional (before-tax) contributions cap

Concessional contributions include compulsory super contributions made on your behalf by your employer, including salary sacrifice, as well as any personal contributions you make to super which you claim as a tax deduction.

There is a cap associated with concessional super contributions and consequences apply for breaching this cap.

The cap on concessional contributions remains unchanged at $30,000 for the 2025/26 financial year.

Carry forward concessional contributions

If you’ve had time out of work raising kids or for other lifestyle reasons, or you haven’t had the money to boost your super until now, you could take advantage of carry forward concessional contributions (also known as catch-up contributions).

If you’re eligible, your concessional contribution cap for the financial year is the annual cap plus any unused concessional contribution caps for the last five financial years. Catch up contributions can help you to make up for past years where you may not have utilised all your concessional contributions cap. The eligibility criteria includes your total super balance at 30 June of the last financial year must have been below $500,000.

If you have increased income for the financial year, taking advantage of the catch-up contributions can help you claim a larger tax deduction.

Non-concessional (after-tax) contributions cap

The annual non-concessional contributions cap remains unchanged at $120,000 for the 2025/26 financial year.

You can increase your super savings by making additional contributions with your after-tax money—including those made from savings or your take-home pay.

To be eligible to make after-tax contributions in 2025/26, you must generally be less than 75 years old and your total super balance at 30 June 2025 must be less than $2.0 million.

Non-concessional contributions bring forward rule

This rule relates to after-tax super contributions and may allow you to contribute more into super by bringing forward up to two years' worth of after-tax contributions in addition to the annual cap.

The total amount you have in super (your total super balance) at the end 30 June of the last financial year will affect whether you are eligible to make any non-concessional contributions.

For example, to trigger the three-year bring-forward in 2025/26, the total super balance must be less than $1.76m at 30 June 2025. The total super balance thresholds are found below.

To trigger the bring-forward you must be less than age 75 at the start of the financial year. Contributions can generally be made if you are under age 75. More complex rules may apply if you have used the ‘bring forward rule’ in the last two financial years or are turning age 75 in the financial year. Your financial adviser can assist you with this.