As we move into the 2025–2026 financial year, there are several important updates to superannuation and retirement planning that may affect your strategy. From proposed tax changes and updated contribution limits to shifts in Centrelink deeming rates, these developments could have a direct impact on both your retirement savings and your broader financial planning.

We’ve partnered with Ellen Mooney, (authorised representative 322703) from Coastal Compass Financial Planning to outline the key changes and what they mean for you, including:

• The status of the proposed Division 296 Bill.

• An increase to the transfer balance cap.

• The rise in superannuation guarantee contributions.

• Adjustments to Centrelink deeming rates for income assessments.

These changes highlight the importance of reviewing your position regularly to ensure your retirement plan remains aligned with your goals and circumstances.

1. Expected reintroduction of division 296 Bill delayed 

The proposed division 296, a further 15% tax on superannuation balances over $3M (in addition to the existing 15% on earnings in accumulation), has not been reintroduced to parliament as expected. This tax would apply to all superannuation funds, including SMSFs, based on a member’s balance.

The earlier bill lapsed, and although it was anticipated that it would be reintroduced following Labour’s decisive election victory - with provisions to apply retroactively from 1 July 2025 - recent lobbying efforts appear to have caused delays, with the government stating it will not be tabled during 2025. 

2. Transfer balance cap increase.

The transfer balance cap limit has increased from $1.9M to $2.0M as of the 1 July 2025.  This cap relates to the amount a person can transfer from the superannuation accumulation environment to pension tax-free.  

3. Superannuation guarantee increase.

From the 1^st of July, the superannuation guarantee has increased from 11.5% to 12.0%.  Superannuation guarantee is paid when employee ordinary times earning (OTE) is greater than $450 per calendar month.  

4. Deeming rates

The first increase in Centrelink deeming rates since they were paused back in 2020 due to the COVID pandemic have been announced.  The lower deeming rate has tripled from 0.25% to 0.75% for amounts below $64,200 for a single person or $106,200 for a couple.  Amounts above this amount will be deemed at the new rate of 2.75%, an increase of 0.5%.  The new rates become effective on the 20 September 2025.

If you are receiving a Centrelink pension or allowance, reviewing and updating your details with Centrelink will ensure you are receiving what you are fully entitled to. 

Thanks to Ellen Mooney from Coastal Compass Financial Planning for sharing this update. If you’d like tailored advice on how these changes might apply to you, please contact us on (08)9071 2173 or at admin@smithshearer.com.au. 

This blog post has been prepared by Ellen Mooney (authorised representative 322703). Coastal Compass Financial Planning (CAR No. 1314132) is a corporate authorised representative of Matrix Planning Solutions Ltd. ABN 45 087 470 200. AFSL 238256. This information cannot be used or copied in whole or part without our express written consent.

This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. (If applicable) You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

While every effort has been made to ensure the accuracy of the information, it is not guaranteed. It is based on our understanding of regulations and laws as at the publication date. As these are subject to change you should talk to a professional adviser for the most up-to-date information.