From 1 July 2025, the general transfer balance cap—which defines the limit for tax-free retirement pension accounts—increases to $2 million, up from $1.9 million in 2024–25. This adjusted cap also increases the threshold for contributing non-concessional super, with higher caps impacting eligibility for the bring-forward rule based on 30 June 2025 balances.
The transfer balance cap from 1 July 2025 is $2 million, an increase of $100,000 from 2024-25. This means that those who have commenced retirement phase income streams for the first time on or after 1 July 2025 will generally be able to commence retirement phase income streams with balances of up to $2 million.
What's changing? On 1 July 2025, the Super Guarantee rate will increase from 11.5% to 12% of your before-tax earnings.
The maximum superannuation contribution base is $62,500 each quarter for the 2025–26 financial year. The limit changes every year.
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.
As of July 1 2024, the super guarantee, will increase from the current rate of 11.0% to 11.5%. The super guarantee will continue to rise in 0.5% increments until it reaches 12% in 2025.
Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum. Earnings on any excess amount in your retirement account are taxed at 15%.
Superannuation Lodgement Key Dates for EOFY
This should allow contributions to reach superannuation accounts no later than 30th June 2025.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.
Any contributions you make over the cap will be taxed at your marginal rate, less a 15% tax rebate. You may also be charged interest. At the end of the financial year, the ATO will give you the option to: withdraw up to 85% of your excess contributions for the financial year.
The Superannuation Guarantee (SG) is going up
From 1 July 2025, the SG will increase from 11.5% to 12%. This is the last legislated increase to the SG rate. If you're an employer or high-income earner: the maximum super contribution base (MSCB) is decreasing.
How to view your total super balance
The maximum you can contribute is $300,000 or the sale price of your home, whichever is less. You may make more than one contribution, but the total must not exceed this maximum.
Only around 3.1 per cent of households have very high total balances of over $2 million. Around 1.4 per cent or 142,000 households have more than $3 million in superannuation.
$1 million is enough for a comfortable retirement if you retire at age 65. This will provide a single person with an income of $60,000 p.a. and a couple with $77,000 p.a., including Age Pension for around 30 years, based on an investment return of 6% p.a. and 3.0% p.a. inflation.
In June 2021 there were about 55,000 individuals with a balance over $3 million, up from around 35,000 in June 2019. Given recent investment returns and further contributions, the Treasury estimate that by July 2025 there will be around 80,000 individuals with more than $3 million in superannuation is quite reasonable.
For many Australians, the answer is yes, especially if they own their home and plan their retirement income carefully. The key is understanding how long $600K can last, how the Age Pension fits in, and what kind of lifestyle this level of super realistically supports.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.