Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect

By Newsdesk

July 01 2025
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The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time.

Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect

Rest superannuation fund said the changes represented a significant step forward for fairness and equity in the retirement system.

The fund estimated a 30-year-old Rest member could be around $11,200 better off at retirement due to the increased super guarantee rate.

Enrico Burgio, Rest's general manager of public policy and advocacy, said the increase was particularly significant for the fund's 2 million members who were more likely to work in part-time and casual roles.

"Many of our members retire with balances below the national average, so every extra dollar can make a real difference in shaping their future and getting them closer to their best-possible retirement," Mr Burgio said.

"An extra $11,200 at retirement is meaningful for so many of our members. It's a clear reminder that even small changes today can lead to big benefits in the future for working Australians."

The introduction of super contributions on Commonwealth Parental Leave Pay payments is designed to help close the gender super gap.

Mr Burgio said Tuesday's changes represented a milestone towards fairer and more equitable superannuation.

"When you consider that eligible parents will also now receive super on their Commonwealth Parental Leave Pay payments – helping to close the gender super gap – today is truly a milestone day towards fairer and more equitable super," he said.

The changes complement other recent reforms including the removal of the $450 monthly income threshold and proposed introduction of Payday Super and Delivering Better Financial Outcomes reforms.

However, Mr Burgio said gaps remained in the superannuation system for certain groups.

"While these changes are a hugely welcome step forward for all working Australians, we know there are still many, including women, younger workers, First Nations peoples and lower-income workers, who continue to miss out on the full benefits of our world-class superannuation system," he said.

Rest has put forward policy recommendations to government aimed at supporting fairer retirement outcomes.

The fund's priority recommendation is extending the superannuation guarantee to all under-18 workers, removing what it describes as an unfair exclusion for those working less than 30 hours per week.

"Our priority recommendation is to extend the Superannuation Guarantee to all under-18 workers, removing the unfair and discriminatory exclusion for those working less than 30 hours per week, with an appropriate transition period for business," Mr Burgio said.

Rest, established in 1988, is one of Australia's largest profit-to-member superannuation funds with around 2 million members and approximately $93 billion in funds under management as at 31 March 2025.

The analysis assumes a 30-year-old member with a starting balance of $31,890 earning $46,436 annually, retiring at age 67 with continuous accumulation of super guarantee contributions.

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