Superannuation Update: What You Need to Know in 2025

Superannuation rules and strategies continue to evolve, and understanding the latest updates could make a significant difference to your retirement savings.

Highview Senior Financial Adviser, Calvin McLeod highlights some key areas to consider for the year ahead:

• Are You Making the Most of Your Contribution Limits?
  Australians can contribute up to $30,000 to their superannuation funds each year. Contributions above this threshold are taxed at the individual’s marginal tax rate, eliminating the tax advantages. It’s also important to note that employer contributions, such as Superannuation Guarantee payments, count towards this limit. Reviewing your contributions regularly can help you maximise tax benefits and enhance your retirement savings.

• Planning for Retirement? A Transition to Retirement Strategy Could Work for You.
  If you are nearing retirement, but not quite ready to stop working yet, a Transition to Retirement (TTR) strategy allows individuals aged 60 or over to access a portion of their superannuation. This can provide both lifestyle flexibility and potential tax benefits, depending on your situation. However, it’s crucial to understand the rules governing TTR, so consulting with a Financial Advisor can help determine if a TTR strategy aligns with your retirement goals.

• Considering Property Investment Through Super?
  Self-Managed Super Funds (SMSFs) can offer a way to invest in property, but there are strict rules and obligations that must be met. If you’re thinking about using your super to invest, it’s essential to understand the potential benefits, risks, and compliance requirements.

• Super Guarantee Changes – What It Means for You.
  The Superannuation Guarantee (SG) rate is scheduled to increase to 12% from 1 July 2025. This means employers will be required to contribute 12% of an employee’s ordinary time earnings to their superannuation fund. It’s important for both employers and employees to be aware of this change to ensure compliance and optimise retirement savings. Employers should adjust payroll systems accordingly, and employees may want to review their superannuation arrangements to take full advantage of the increased contributions.

Time for a Super Health Check?
Given the evolving superannuation landscape, it’s an opportune time to assess your super strategy. Whether you’re a business owner, investor, or nearing retirement, understanding your super options can significantly impact your financial future. If you’d like to discuss your superannuation strategy and ensure you’re on track, get in touch our team of Financial Advisers now.