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Superannuation Thresholds for 2025-26: Key Updates
27 Feb, 2025
Thomson Reuters has released the latest superannuation rates and thresholds for the 2025-26 financial year, based on the Australian Bureau of Statistics’ AWOTE figures and in line with Subdivision 960-M of the ITAA 1997. While the concessional contributions cap remains unchanged at $30,000, several other important thresholds are set to increase from 1 July 2025. Here’s a breakdown of the key changes:
Superannuation Rates and Thresholds
| Category | 2024-25 | 2025-26 |
|---|---|---|
| Basic concessional contributions cap | $30,000 | $30,000 |
| CGT cap amount | $1.780m | $1.865m |
| Downsizer contributions (not indexed) | $300,000 | $300,000 |
| Div 293 tax threshold (not indexed) | $250,000 | $250,000 |
| Government co-contributions | ||
| – Lower income threshold | $45,400 | $47,488 |
| – Higher income threshold | $60,400 | $62,488 |
| Superannuation guarantee | ||
| – Minimum % of OTE base per quarter | 11.5% | 12.0% |
| – Maximum contribution base per quarter | $65,070 | $62,500 |
| – Maximum contribution base annual equivalent | $260,280 | $250,000 |
| – SG payable on maximum contribution base (over 4 quarters) | $29,932.20 (at 11.5%) | $30,000 (at 12%) |
| Income streams | ||
| – General transfer balance cap | $1.9m | $2.0m |
| – Untaxed plan cap | $1.780m | $1.865m |
| – Defined benefit income cap | $118,750 | $125,000 |
| Genuine redundancy and early retirement payments | ||
| – ETP cap | $245,000 | $260,000 |
| – Base tax-free amount | $12,524 | $13,100 (est) |
Key Takeaways
- The concessional contributions cap remains steady at $30,000.
- The general transfer balance cap will increase to 2.0mil1.9mil.
- The superannuation guarantee rate will rise to 12.0%, up from 11.5%.
- Government co-contribution thresholds will see a slight increase, with the lower threshold rising to 47,488 and the higher threshold to 62,488.
These updates are essential for taxation and financial planning, and ensuring compliance with superannuation regulations. If you have any questions related to these updates, please feel free to contact us.
Source: Thomson Reuters, Australian Bureau of Statistics
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