This year’s budget has landed and there are some important changes that could affect you. Here’s a quick breakdown of what to expect from this budget, and over the next few years.
Key Announcement
Additional funding for the Australian Tax Office to expand tax compliance activities
An additional $999 million has been allocated to the Australian Taxation Office (ATO) over four years to extend and expand tax compliance activities.
Of this amount, $50 million over three years from 1 July 2026 is included to ensure timely payment of tax and superannuation liabilities by medium and large businesses and wealthy groups through the Tax Integrity Program. It is expected to result in $31 million in unpaid superannuation to be distributed to employees through this measure.
Changes starting July 1, 2025
Super will be paid on Commonwealth Parental Leave Pay Scheme
In 2024, the Australian Government announced it would include superannuation contributions on the Commonwealth Parental Leave Pay scheme. This reform will be starting on the 1 July 2025.
Other changes 1 July and beyond
Beyond the announcements made in this year’s Federal Budget, there are other changes that have an impact on superannuation that are already in progress, commencing 1 July 2025 and beyond. These include:
- The Superannuation Guarantee (SG) rate increases from the current 11.5% to 12% on 1 July 2025
- To date, there is no announcement of any increases to concessional or non-concessional contributions caps on 1 July 2025
- The total superannuation balance that can be transferred into a superannuation income stream (Transfer Balance Cap) will increase from $1.9 million to $2 million on 1 July 2025.
Progress on existing reforms
Payday super – draft legislation released 14 March 2025
The Budget papers note the support provided by government to the Australian Taxation Office to work with industry and stakeholders on the Payday superannuation policy, to ensure employees are paid their super at the same time as their salary and wages. The Australian Taxation Office has also worked with employers to action unpaid super, with $932 million of previously unpaid superannuation reaching the retirement accounts of 797,000 employees in 2023–24.
Delivering Better Financial Outcomes (DBFO) – draft legislation released 21 March 2025
Initial components of legislation for Tranche 2 of the DBFO reforms were released on 21 March 2025, including:
- Replace the Statement of Advice with a more fit-for-purpose client advice record.
- Provide clear rules on what advice topics can be collectively charged for via superannuation.
- Allow superannuation funds to provide targeted prompts (nudges) to members to drive greater engagement with superannuation at key life stages.
Importantly, the Government continues to develop legislation to modernise the best interests’ duty and create a new class of adviser. These remaining pieces will be consulted on and combined with the draft legislation released and will be introduced into Parliament as a single package (Tranche 2) later in 2025.
Rest welcomes the progression of these reforms and the opportunity they provide for Rest and other superannuation funds to cost-effectively increase the scope and reach of financial advice. Rest strongly believes that all Australians, regardless of their income, should have easy access to financial advice.
If you’d like to know more, read the media release and the draft legislation.
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