From July 1, 2025, millions of Australian workers will see a significant increase in their superannuation contributions. The superannuation guarantee rate will rise from 11.5% to 12%, benefiting almost 10 million workers across the country. This change marks the final phase of an incremental increase that began in 2021.
Employers will now be required to contribute the new 12% rate to employees’ super accounts, which will result in higher retirement savings for many Australians.
The average worker will see an additional $317 paid into their super in the upcoming financial year, significantly boosting their retirement funds.
Key Impact of the Superannuation Increase
The increase in superannuation payments will have a substantial effect on workers’ retirement savings. For example, a typical 30-year-old will retire with $22,000 more in their superannuation fund due to the 0.5% increase.
When combined with previous increases from 9% to 12%, this will add up to an extra $132,000 in super savings by retirement.
The Australian Superannuation Fund (ASFA) has also shared that a 30-year-old with a super balance of $30,000 and earning the median wage is expected to accumulate $610,000 in super, thanks to this increase.
This amount surpasses the $595,000 required for a comfortable retirement for a single person.
Superannuation Guarantee: A Milestone for Australians’ Retirement
Superannuation experts believe that the scheduled increase is a critical step in ensuring a comfortable and secure retirement for Australians.
Misha Schubert, CEO of the Super Members Council, emphasized that the super rate increase is crucial for helping Australians achieve the retirement life they deserve, allowing more freedom, financial security, and opportunities for enjoyment after their working years.
The Australian Superannuation Funds Association (ASFA) also recognized the milestone, stating that the increase to 12% is a significant achievement in Australia’s world-class superannuation system.
According to ASFA CEO Mary Delahunty, today’s 30-year-olds will benefit the most from these changes and enjoy the rewards of decades of progress in the system.
Who Will Benefit the Most from the Super Increase?
The superannuation payment increase will affect nearly 10 million Australian workers, with the majority being under 40 years old.
Workers in their 30s are set to receive the largest boost to their retirement savings, as this age group will benefit most from the increase.
The breakdown of the demographic benefits is as follows:
| Income Range | Percentage of Beneficiaries |
|---|---|
| Earning less than $50,000 | 30% |
| Earning less than $100,000 | 70% |
| Workers under 40 years old | Majority of beneficiaries |
Additionally, Australians receiving paid parental leave from the government will also see superannuation payments starting in July 2025, providing even more workers with the opportunity to build retirement savings.
The Growing Need for Increased Superannuation Payments
With rising living costs, including increases in food, energy, and healthcare expenses, Australians are finding it more challenging to save for retirement.
According to the ASFA Retirement Standard, the cost of a comfortable retirement has increased by 1.6% over the past year.
This is a smaller increase compared to the overall inflation rate of 2.4%, but it still underscores the importance of building superannuation savings.
As of 2025, singles will need $52,383 annually to live comfortably in retirement, while couples will require $73,875 annually.
For those aiming for a comfortable retirement at 67 years of age, singles will need a superannuation balance of $595,000, and couples will need $690,000.
Upcoming Changes to Superannuation
In 2026, new “payday super” rules will take effect. These changes will require employers to pay super into their employees’ superannuation accounts at the same time as wages, streamlining the process and ensuring that workers’ super payments are made promptly.
The upcoming superannuation increase from 11.5% to 12% marks a significant achievement in Australia’s retirement system. This increase will help millions of workers, especially those in their 30s, build substantial savings for a comfortable retirement, ensuring financial security in their later years.
FAQs
When will the superannuation rate increase to 12%?
The superannuation guarantee will increase to 12% from July 1, 2025.
How much more will a typical 30-year-old retire with after the super increase?
A typical 30-year-old will retire with $22,000 more in their super thanks to this increase.
How will the increase in superannuation payments affect low-income workers?
Nearly 30% of the people benefiting from the increase earn less than $50,000 a year, ensuring that even low-income workers see an improvement in their retirement savings.