Increase to Superannuation Guarantee welcome - but what does it mean for your take-home pay? - CPA Australia

18 Jun 2025 8:32 AM

18 June 2025

Increase to Superannuation Guarantee welcome – but what does it mean for your take-home pay?

• Check how increase to Superannuation Guarantee affects your pay
• Use July 1 change as opportunity to review your retirement savings
• Extra contributions to top-up your super can be made until June 30

Australia’s largest accounting body, CPA Australia, is urging workers to check how next month’s increase to the Superannuation Guarantee will affect them. 

The change means the minimum contribution that employers are required to make to their employees’ superannuation funds will rise from 11.5 per cent to 12 per cent from July 1. 

CPA Australia’s Superannuation Lead, Richard Webb, says the increase could make a substantial difference to retirement savings in the long run. 

“For a young person on $60,000 a year, the increase translates to an extra $300 in their super account every 12 months. But depending on investments and fees, the cumulative effect of that increase could ultimately be worth thousands by the time they retire,” he said. 

While the increase in the Superannuation Guarantee will have a positive long-term benefit to retirement savings, Mr Webb reminds workers to check if their employer is making the extra contribution, or whether it comes out of their total remuneration package. 

“If your employment contract includes a total remuneration package including super, this could mean less take-home pay at the end of the month,” he said. “However, for those on award or enterprise agreements, your pay agreement is more likely to be a salary, which means the change will not affect your take-home pay. 

“It’s a good idea to check with your employer to see how they view the changes and what it means for you. Otherwise, you might get a shock if your take-home pay is a little less than expected.”  

July 1 also marks the date when superannuation payments will now be included in the government’s Parental Leave Pay scheme. 

Mr Webb says now is the time for Aussies to take charge of their savings and ensure they are on track for a comfortable retirement. 

“There are no more legislated increases to the Superannuation Guarantee, so it’s up to individuals to take control of their super and make sure they are getting the most from their money,” he said. “This includes making sure the investment and insurance options within the fund are appropriate. 

“It’s important you put time aside to look at your superannuation. For example, if you have more than one fund, consider whether it is appropriate to consolidate them into one account, and use a good online calculator, such as the Moneysmart website’s tool, to estimate how your current balance will accumulate by the time you reach retirement age. 

“It’s never too late to look into growing your retirement savings, including making additional contributions to your fund before the end of the financial year. Your financial adviser will be able to help you with these decisions.” 

Next month's increase in the Superannuation Guarantee marks the end of a long-drawn-out process of incremental increases to the minimum super contribution requirement from 9 per cent to 12 per cent after it was legislated back in 2012. 

“It’s good to have finally reached the point where Australians will receive this much-needed increase in minimum superannuation contributions - but it should not have taken this long,” Mr Webb said. 

About us:

About CPA Australia   

CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. We have more than 175,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au

Contact details:

Simon Downes, External Affairs Lead, [email protected] or 0401 461 503

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