If you’re like most Aussies, your superannuation probably ticks along quietly in the background. But come 1 July, a few key changes will come into effect — and they’re worth paying attention to.
The biggest one? Your employer is about to pay you more super. The Super Guarantee rate is going up from 11.5% to 12%, which is the final step in a plan the government’s been rolling out over the past few years. You won’t have to do anything — but your retirement savings will grow faster from now on.
Then there’s the new rule targeting very large balances. From 1 July, if you’ve got over $3 million in super, any earnings on the amount above that threshold will be taxed at 30%, instead of the usual 15%. To be clear, this isn’t a tax on your total balance — just on future earnings from the portion above $3 million. And unless you’re in the top half a percent of super holders, this probably won’t affect you at all.
What’s not changing? The government isn’t taking money out of anyone’s super. There’s no cap on how much you can have in your fund, and if you’re under that $3 million mark, your tax treatment stays exactly the same. Also, nothing is being applied retroactively — these changes only kick in from the new financial year onwards.
If you’re unsure how these changes impact your retirement plans — or if you’ve never really looked too closely at your super — now’s a smart time to do it.
Book a free, no-obligation chat with one of our superannuation advisers – we’ll look at your current setup, explain what the changes mean for you, and help you take full advantage if you’re in a position to grow your fund faster.
To book your free, no-obligation appointment:
A little tweak today could mean a lot more tomorrow — especially when it comes to your super.