The Superannuation Guarantee (SG) rate is now 12%. From 1 July 2026, employers will be required to pay super at the same time as salary and wages, rather than quarterly. This change aims to improve visibility and consistency of super contributions for employees.
From 1 July 2026
Super guarantee payments must be paid to an employees' super fund at the same time as paying qualifying earnings (QE), on payday, and received by the super fund within 7 business days. There are some exceptions to the 7-day deadline, such as for new employees.
In 2026, individuals ages 50 and older may be able to contribute up to $32,500 to a 401(k)-retirement plan, including catch-up contributions. Individuals ages 60 to 63 may be able to set aside up to $35,750, with super catch-up contributions.
From 1 July 2025, the super guarantee, that is - the percentage of your wage that your employer is required to pay into your super account, will increase from 11.5% to 12.0%. Refer to the Australian Taxation Office (ATO) website for full details.
If you're aged 60 or over and withdraw a lump sum: You don't pay any tax when you withdraw from a taxed super fund.
The new $3 million super tax is a proposed tax change that will impose an additional 15% tax on investment earnings, including unrealised gains, for super balances exceeding $3 million. This would bring the total tax rate on these earnings to 30%.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Yes, Social Security benefits will get a raise in 2026, with a 2.8% Cost-of-Living Adjustment (COLA), resulting in an average monthly increase of about $56 for retirees, bringing the average payment to around $2,064, starting with January 2026 payments. This adjustment is designed to help benefits keep pace with inflation, though higher Medicare Part B premiums might offset some of the increase for many beneficiaries.
Now that we know an investment growing at a compound rate of 7% a year will roughly double in value every ten years, imagine how your money will grow over 40 years or more. That's the simple but powerful concept behind super.
The bring-forward rule enables you to accelerate your super contributions by using up to three years' worth of non-concessional (after-tax) contributions caps in a single year. This means you could contribute up to three times the annual limit in one go, or spread your contribution out over two to three years.
Key takeaways
For tax year 2025, the most you can contribute to a Roth 401(k), a traditional 401(k), or a combination of the two is $23,500. For 2026, this rises to $24,500 for 2026. Those 50 and older can contribute an additional $7,500 in 2025, and $8,000 in 2026.
The Million-Dollar Reality Check
According to Fed data, just over half of Americans (54.3%) have retirement accounts, and of those, less than one in 20 (4.7%) have reached the $1 million mark.
If you exceed the cap, you are liable to pay tax on the excess transfer balance earnings (excess transfer balance tax). You also need to transfer any excess to a super accumulation account or withdraw it as a lump sum. This is called a commutation.
Research shows that less than 1% of households have $3 million or more in retirement savings. While this amount is uncommon, those who consistently invest, save diligently and manage their spending can build significant retirement assets over time.
From 1 July 2025, the SG rate is 12% of your employee's ordinary time earnings. You might need to pay a higher SG rate if it's in an award or enterprise agreement. Super contributions are paid in addition to your employee's wages or salary. Employees can ask you to make extra post-tax super payments for them.
Around 87,000 individuals have super accounts with +$3 million. That compares to Treasury's figure of 80,000.