Superannuation Rates and Thresholds for 2025 – 2026
The Australian Taxation Office (ATO) has released the key superannuation rates and thresholds for the 2025/26 financial year.
Superannuation Guarantee (SG) – the SG rate rises to 12% for 2025/26
Each employer you work for must pay money, known as Superannuation Guarantee (SG) contributions, into your super account on top of your salary and wages. Generally, if you’re over 18 years, you’re entitled to receive super, regardless of whether you’re full-time, part-time or casual, or if you’re a temporary resident of Australia. Exceptions apply – visit the ATO website for more information. The SG rate is also increasing over the next few years as detailed in the table below.
| Financial Year | Superannuation Guarantee Rate (percentage of Ordinary Times Earnings) |
| 2014/15 – 2020/21 | 9.5% |
| 2021/22 | 10% |
| 2022/23 | 10.5% |
| 2023/24 | 11% |
| 2024/25 | 11.5% |
| 2025/26 and onwards | 12% |
It’s important to note that before 1 July 2022, you also had to be earning more than $450 a month (before-tax) to be eligible to receive SG contributions. However, in a move widely considered to make super fairer, a bill to remove this minimum monthly income threshold for compulsory SG contributions was passed in parliament. This means, from 1 July 2022, you will be eligible to receive compulsory employer SG payments, no matter how much you earn.
Concessional Contributions Cap – From 1 July 2024, the concessional contribution cap is $30,000 a year.
Concessional contributions are contributions that you or your employer make to your super with before-tax income or claim as a tax deduction. They are also referred to as employer or before-tax contributions.
However, from 1 July 2018, if you do not use all of your concessional cap, you may be able to carry forward any unused amounts and increase your cap in future years (if you are eligible). Your MyGov account will show you the concessional cap available to you each year. For more information please read our Fact Sheet on Contribution Limits.
Non-Concessional Contributions Cap – the cap for 2025/26 will be $120,000.
Non-concessional contributions are contributions you or your spouse make to your super from your after-tax income. They are also referred to as personal or after-tax voluntary contributions.
If your total superannuation balance is lower than the genera transfer balance cap (currently $2 million), an annual $120,000 non-concessional contributions cap will apply. If your balance is above $2 million, the cap is nil and as such any non-concessional contributions will be treated as ‘excess’ non-concessional contributions.
Depending on your total superannuation balance, if you’re aged under 75, you may be able to bring forward up to two years of contributions, giving you a total maximum non-concessional cap of $360,000 for the three years. For more information please read our Fact Sheet on Contribution Limits.
Maximum contribution base
The maximum super contribution base is used to determine the maximum limit on any individual employee’s earnings base for each quarter of any financial year. The maximum contribution base for Superannuation Guarantee (SG) purposes is $62,500 per quarter for the 2025-26 financial year.
Government Co-Contribution
The government co-contribution is an initiative to help individuals save for retirement. If you earn $62,488 or less and make after-tax contributions to your super, the government will pay up to 50 cents for every dollar you contribute, subject to a maximum of $500 per year. The amount they match will be added to your super account. The maximum super contribution payable, and the way it is calculated, depends on the financial year in which you make your eligible personal contribution.
| Year of entitlement | Maximum entitlement | Matching rate | Lower threshold | Higher threshold |
| 2017-18 | $500 | 50% | $36,813 | $51,813 |
| 2018-19 | $500 | 50% | $37,697 | $52,697 |
| 2019-20 | $500 | 50% | $38,564 | $53,564 |
| 2020-21 | $500 | 50% | $39,837 | $54,837 |
| 2021-22 | $500 | 50% | $41,112 | $56,112 |
| 2022-23 | $500 | 50% | $42,016 | $57,016 |
| 2023-24 | $500 | 50% | $43,445 | $58,445 |
| 2024-25 | $500 | 50% | $45,400 | $60,400 |
| 2025-26 | $500 | 50% | $47,488 | $62,488 |
Additional eligibility requirements were added from 1 July 2017, which includes:
- having a total superannuation balance less than the general transfer balance cap at the end of 30 June of the previous financial year.
- having not exceeded your non-concessional contributions cap in the relevant financial year.
Low Income Superannuation Tax Offset (LISTO)
From 1 July 2017, the Australian Government introduced a Low Income Superannuation Tax Offset (LISTO) to replace the Low Income Superannuation Contribution (LISC). LISTO will continue to support low income earners to accumulate super and make sure they don’t pay more tax on their super than on their take-home pay.
This means, if you earn $37,000 or less a year, you may be eligible to receive a LISTO contribution to your super. This contribution is equal to 15% of the total concessional (before-tax) super contributions you or your employer pays into your super account, for an income year, capped at $500.
For more information visit ato.gov.au
Spouse contributions
A spouse contribution is an after-tax contribution to a superannuation account held in your spouse’s name. In other words you’re investing money into your spouse’s super account rather than your own.
You are eligible to make spouse contributions, if your spouse was under 75 years old when the contributions are made. You are not eligible to make spouse contributions for a spouse aged 75 or older.
A spouse includes a de facto partner. Also, both you and your spouse must be Australian residents at the time the contributions are made.
As the contributor, you can get a tax rebate up to $540 per financial year. You get the full tax rebate if:
- you contribute at least $3,000 to your spouse’s account; and
- their assessable income plus reportable fringe benefits plus reportable employer super contributions is less than $37,000 for the year.
If you contribute less than $3,000, the rebate will be equivalent to 18% of your contributions.
If your spouse’s relevant income is higher than $37,000, the rebate reduces until it cuts out when your spouse’s income reaches $40,000.
You can find more details about eligibility on the ATO website.
Preservation age
Your preservation age is not the same as your pension age. Your preservation age is the age you must reach before you can access your super and this is set at age 60. This means if you are 60 years or more, you have reached your preservation age. If you are under 60 years, you have not.
Minimum pension limits
Minimum pension limits apply to account-based, allocated and market linked (term allocated) pensions.
| Age at 1 July each year | Default minimum drawdown rate |
| Under 65 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95 and over | 14% |
Downsizer super contributions
If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your super. The eligible age from 1 January 2023 is 55 years old or older. There is no maximum age limit.
The downsizer contribution:
- counts towards the transfer balance cap when you move your super savings into retirement phase, but if you have already reached the $2 million transfer balance cap, your downsizer contribution, along with any other amounts above the cap, can remain in accumulation phase and will be subject to 15% tax on investment earnings.
- will impact Age Pension benefits. Super isn’t exempt from the Age Pension test, which means any money put into super, such as a downsizer contribution, could impact the assets and income tests aligned to the Age Pension.
- is a one-time offer, so it cannot be used again for the sale of a second home.
To learn more about downsizer contributions, check out the ATO website
Your super and the work test
If you are under 75 years of age, you can make or receive after-tax super contributions and salary sacrificed contributions without meeting the work test, provided you remain under the current annual contribution caps and your balance is less than $2 million.
Here’s how it works:
- If you’re making contributions to your super, you can continue to make before-tax contributions up to $30,000 a year, minus any other before-tax contributions you receive, such as employer contributions. You may also have a higher before-tax limit, if you have ‘unused’ amounts from previous years.
- If your total super balance is less than $2 million, you can now make additional after-tax contributions up to $120,000 a year. You may also use the ‘bring forward’ rule to make after-tax contributions of up to $360,000.
That said, if you want to make an after-tax contribution for which you plan to claim a tax deduction (referred to as a ‘personal deductible contribution’) and you’re between age 67 and 74, then you still have to meet the work test requirements (or exemption) — To satisfy the work test, an individual must work at least 40 hours during a consecutive 30-day period each income year.
Tax on super components
Taxed elements of your lump sum benefit
| Contribution type | Components | Tax treatment |
| Non-concessional | Tax-free | 0% |
| Concessional (before tax)
Includes personal contributions from after tax income for which you have claimed a tax deduction |
Taxable | Under preservation age Your marginal tax rate (including Medicare levy) or 22%1, whichever is lower At or above preservation age, less than 60 Tax free up to $260,000 and the balance taxed at 17%1 Age 60 and over 0% |
Tax on contributions
| Type of contribution | Under contribution limit | Over contribution limit |
| Non-concessional | 0% | 47%1 |
| Concessional | 15% | Your individual marginal tax rate plus you may have to pay extra tax1 |
| High income earners with an income over $250,000 a year | 30% (includes 15% standard contributions tax + 15% additional tax called Division 293 tax2) | Concessional contributions in excess of the cap will be taxed at your marginal rate and Division 293 tax does not apply. |
Tax on super earnings
Investment earnings in superannuation are taxed at a maximum rate of 15%. The effective tax rate on some earnings is lower because of further tax concessions or credits available to the Fund.
Investment earnings on pensions are tax free.
Tax on income streams
Super income streams are also known as pensions and annuities.
Superannuation benefits are made up of two components, taxable and tax-free. Please note, the tax free component is not included in the table below as no tax is payable on this component.
| Age of recipient | Tax on income stream taxable component |
| Age 60 or above | Tax free |
| At or above preservation age and under 60 | Taxed at marginal tax rates Tax offset of 15% is available |
| Under preservation age | Taxed at marginal tax rates, with no tax offset. Tax offset of 15% is available for a disability super benefit. |
For information regarding tax on death benefits please visit the ATO website.
1 Includes Medicare Levy of 2%.
2 The additional 15% tax will only apply to the contributions equal to the value of calculated income over $250,000. Note: There is a special method to calculate a person’s income for this additional tax. For example your superannuation contributions are included in the calculation. Please refer to the ATO website for further details.
Income tax rates
Marginal personal income tax rates for the 2025-26 financial year.
| Taxable Income | Tax on this income |
| 0-$18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
The above rates do not include the Medicare levy of 2%.
Useful links
Can’t find what you’re looking for? Try the following websites:
Current tax rates: ato.gov.au
Superannuation industry issues: superannuation.asn.au
Social security entitlements: centrelink.gov.au
Financial tips and safety checks: moneysmart.gov.au
