The key superannuation changes in Australia for 2025 and upcoming years include:

1. New Withdrawal Rules (from October 10, 2025):
   • Australians aged 55 and above can access partial withdrawals under specific conditions such as hardship.
   • Proof of hardship and enhanced identity verification are required.
   • Withdrawal patterns will be monitored by the ATO to prevent misuse.
   • Taxation varies by age: those 60+ enjoy tax-free withdrawals; those 55-59 face partial taxation depending on income and withdrawal frequency.
   • Annual withdrawal limits will align with life expectancy tables, with monthly ATO reporting requirements for super funds.

2. Super Guarantee Increase (from July 1, 2025):
   • Employer contributions to super (Super Guarantee) increase from 11.5% to 12% of before-tax earnings.
   • Super paid on government-funded parental leave payments will commence, contributing at the minimum Super Guarantee rate.

3. Transfer Balance Cap Increase (from July 1, 2025):
   • The cap on the amount transferable into the tax-free retirement phase increases from $1.9 million to $2 million.

4. Superannuation Tax Changes (effective July 1, 2026, delayed from original plans):
   • Two-tier cap on concessional tax rates for super balances:
     • Balances between $3 million and $10 million taxed at 30%.
     • Balances exceeding $10 million taxed at 40%.
   • Both thresholds will be indexed for inflation.
   • Tax on unrealised capital gains has been removed from the plan.
   • Low-Income Superannuation Tax Offset (LISTO) will increase from $500 to $810, with the income eligibility threshold raised from $37,000 to $45,000 by 2027, benefiting about 1.3 million low-income Australians.

These reforms aim to improve the sustainability of retirement savings, enhance fairness in the tax system, support low-income earners, and give retirees greater flexibility while ensuring stronger oversight and long-term fund viability.