Superannuation rates and thresholds update: what the new 12% guarantee means for tradies

From 1 July 2025, the superannuation guarantee (SG) rate officially increased to 12% of ordinary-time earnings (OTE).

This is the final step in the government’s long-planned rise to help Australians build stronger retirement savings. But for small trade and maintenance businesses, it’s not just a number on paper; it affects your payroll costs, cash flow, and how you manage your team’s wages.

We know the reality. You’re already juggling supplier bills, fuel, and BAS deadlines, and the last thing you need is another hit to cash flow. So let’s break down what’s changed and what it means for you.

What's changed

Until 30 June 2025, the SG rate was 11.5%. From 1 July 2025, it’s 12%.

It might not sound like much, but across your payroll, those small percentage points add up, especially if you’ve got multiple staff or pay weekly.

This change affects:

• Cash flow: You’ll need to set aside slightly more each pay cycle.

• Payroll systems: Your software must calculate super at the new 12% rate from 1 July.

• Employment contracts: If staff are on “total package” agreements (inclusive of super), their take-home pay could drop unless adjusted.

Employer checklist

To stay compliant and avoid penalties, here’s what you should do:

1. Update payroll software

Make sure your system or bookkeeper has switched to 12% for all pay runs from 1 July 2025.

2. Review employment agreements

If contracts are inclusive of super, you’ll need to decide whether to absorb the extra cost or adjust gross wages so take-home pay isn’t affected.

3. Budget for the increase

Factor higher super contributions into your job quotes, overheads, and cash-flow forecasts.

4. Pay on time

Missing super deadlines can get expensive fast. The ATO can deny deductions, charge interest, and apply penalties for late payments.

This is one of those areas where prevention is a lot cheaper than correction.

Updates super and contribution caps

Alongside the SG rise, several super thresholds have shifted slightly for 2025/2026. The most relevant for small business owners:

• The general transfer balance cap is now $2 million, allowing more flexibility for after-tax contributions.

• The concessional (before-tax) cap remains at $30,000, and the non-concessional (after-tax) cap stays at $120,000, with the three-year bring-forward rule still at $360,000.

If you’re self-employed or running your own trade business, this means you can keep topping up your super, but make sure you stay within the limits and check your total super balance before contributing.

Claiming personal contributions

If you’re adding extra to your own super and want to claim a tax deduction, timing matters. You’ll need to:

• Contribute during the financial year.

• Be under 67 (or meet the work test if you’re 67–74); and

• Submit a Notice of Intent to Claim to your fund before lodging your tax return or by 30 June the following year.

Once you’ve rolled over or withdrawn your full balance, you can’t claim the deduction, so keep your paperwork in order.

Why this matters for tradies

For most tradies, super feels like something you’ll deal with later, but this change hits your business now. If you’ve got staff, it means higher costs on every job. If you’re on your own, it’s a good time to review your own contributions and make sure you’re not leaving tax deductions on the table.

Getting super right isn’t just about compliance. It’s about protecting your business, managing cash flow, and keeping more of what you earn.

Bottom line

The move to 12% super might seem small, but it’s worth getting right. Review your payroll setup, check your contracts, and plan ahead for the extra cost.

At AccNav, we help tradies master the money side of business, from payroll and BAS to cash flow and tax. Need more help? Check out our Small Business Foundations Course and master your books.