As we commence the 2025–26 financial year, several key changes to superannuation and Centrelink have come into effect. These adjustments may influence your retirement planning and eligibility for government support. Below is a concise overview of the most pertinent updates.
Superannuation Changes
- Superannuation Guarantee Contribution (SGC) Increase
From 1 July 2025, the Superannuation Guarantee rate has risen from 11.5% to 12%. This marks the final step in the legislated increase, potentially adding significant value to your retirement savings over time.
- Transfer Balance Cap (TBC) Adjustment
The general Transfer Balance Cap has increased from $1.9 million to $2 million. This cap limits the amount you can transfer into a tax-free retirement phase account. If you haven’t commenced a retirement income stream, you can now transfer up to $2 million. For those who have already started, your personal cap may increase proportionally based on your unused cap space.
- Concessional Contribution Cap Remains Unchanged
The concessional (pre-tax) contribution cap remains at $30,000 for the 2025–26 financial year. This includes employer contributions, salary sacrifice, and personal deductible contributions.
Centrelink Payment and Threshold Updates
- Payment Increases
Centrelink payments have been indexed by 2.4% to keep pace with inflation. This adjustment affects various payments, including the Age Pension.
- Income and Asset Threshold Adjustments
The income and asset thresholds for Centrelink payments have also been increased. For example, for homeowner singles, the full pension is available for those with assessable assets under $321,500, while the cut-off for a part pension is $704,500. For homeowner couples, the corresponding figures are $481,500 and $1,059,000. These thresholds are adjusted to keep pace with inflation. These changes may affect your eligibility for certain payments.
Key Takeaways
- SGC Rate: Increased to 12% from 1 July 2025.
- Transfer Balance Cap: Raised to $2 million.
- Concessional Contribution Cap: Remains at $30,000.
- Centrelink Payments: Increased by 2.4%.
- Income and Asset Thresholds: Adjusted to reflect inflation.
It’s a great time to review your superannuation contributions, retirement strategy, and Centrelink entitlements in light of theses changes. If you’d like to understand how these updates affect you personally, please get in touch with us as we’re here to help.
Written by
Michael Simmons
Financial Planner