In this guide
Keeping up to date with Government announcements and proposed changes to super is not easy. Until now that is.
Here is a summary of the important, recently introduced or pending superannuation changes and proposals all in the one place.
Super on parental leave pay
Current law
Under this measure, which applies to parents with babies born or adopted on or after 1 July 2025, the Government will pay superannuation guarantee on top of the government-funded Parental Leave Pay.
An annual lump sum super contribution, consisting of the super guarantee amount and an interest component, will be made to the nominated super fund of the eligible recipient
The first payments under this scheme will be made from July 2026 to eligible recipients who received parental payments during the prior financial year.
The super guarantee rate will be 12% at that time.
No application for payment is required as the ATO will automatically assess entitlements. Once paid, these amounts will be assessed against the recipient’s concessional (tax-deductible) contributions cap.
SMSF trustee penalty unit increase
Current law
Effective from 7 November 2024, the Commonwealth penalty unit amount has been increased from $313 to $330. This affects SMSF trustees who are subject to fines and penalties for specific breaches of the superannuation rules.
SMSF individual trustees and directors of corporate trustees are personally liable to pay an administrative penalty in situations where they contravene certain parts of the superannuation rules.
It is important to note that these penalties cannot be paid or reimbursed from the capital of the fund.
Where an SMSF has individual trustees, each trustee is personally liable to pay the penalty; whereas directors of corporate trustees are jointly and severally liable for the penalty amount.
Ceasing legacy pensions
Current law
New regulations came into effect from 7 December 2024 that allow super fund members to “exit” their legacy super pensions and use these proceeds to acquire other, less restrictive types of retirement pensions.
These changes will help modernise retirement income streams and allow more flexibility to super fund members who were previously “stuck” in outdated retirement products.
The objective of Superannuation (Bill)
Passed by both Houses, but not yet law
It is hard to fathom, but Australia’s superannuation system has no official objective. This is about to change, following the Government’s stated intention to formally legislate the objective of our superannuation system. That way, any future proposed changes to super can be assessed according to how they align with the stated and legislated objective.
The Government has suggested that the objective be: “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.”
The Bill containing this issue finally passed both houses of parliament on 28 November 2024 but has not yet formally become law.
Division 296 earnings tax on $3 million+ balances
Not yet law
Division 296 refers to the proposed new tax on superannuation fund earnings for members with a balance above $3 million.
Although this proposed measure is scheduled to begin from 1 July 2025, the Government has not yet passed any changes to the existing rules.
Whether these proposals can be passed before the 2025 federal election is yet to be determined.
Changes to the SMSF residency rules
Not yet law
The May 2021 proposal to relax the residency requirements for SMSFs has yet to be finalised.
The proposed changes include:
- Extending the central management and control safe harbour test from two years to five years
- Removing the active member test altogether.
These measures would allow SMSF members to continue contributing to their super fund while temporarily working or studying overseas, ensuring a more level playing field with large APRA-regulated funds.
As at December 2024, there has been no further progress made to legislate this reform.
Pay day super
Not yet law
The Government has proposed that employers will be required to pay their employees’ super at the same time as their salary and wages, starting from 1 July 2026.
Employers that fail to make the required super payments to an employee’s super fund within seven days of their payday will be liable for the super guarantee charge (SGC) in addition to making catch-up super guarantee payments. The SGC imposes additional amounts for notional earnings lost and an administrative charge to cover the cost of enforcing these rules.
This measure was first announced in the 2023–24 Federal Budget but, as at December 2024, has yet to be finalised.
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