Key Financial Changes Coming on 1 July 2025 for Investors
What changes are coming into effect 1 July 2025?
And what should investors pay attention to?
As the financial year closes, several changes on 1 July 2025 could affect your investment and retirement strategy. Staying ahead of these updates can help you make smarter decisions in the new financial year.
Here’s what’s changing, and what savvy investors should consider in response.
Superannuation
Increase to the Super Guarantee (SG)
As part of the legislated schedule, the Super Guarantee will rise from 11.5% to 12%. While employers are responsible for making the contributions, it’s important to review the total concessional contributions you’re making, particularly if you salary sacrifice or make personal deductible contributions.
Investor tip:
If you’re already close to your concessional cap, this increase could tip you over. Review your strategy to avoid unexpected tax liabilities and ensure your salary sacrifice arrangements are still working in your favour.
Division 296 Tax on balances over $3 million
This proposed additional tax is set to begin from 1 July 2025 (or be applied retroactively if delayed). It targets super balances over $3 million with an extra 15% tax on earnings related to the excess.
Investor tip:
If you may be impacted, now is the time to:
🔹 Review total super balances across all funds
🔹 Work with your adviser to plan for liquidity, especially if your assets are illiquid
🔹 Strategically consider new contributions or spousal strategies to manage exposure
Increase to the Transfer Balance Cap
The Transfer Balance Cap (TBC) will increase from $1.9 million to $2 million. This determines how much of your super can be transferred into the retirement (tax-free) phase.
Investor tip:
If you’re approaching retirement, this increase may allow more of your super to move into a tax-free environment. Couples in particular may benefit from additional planning opportunities.
Government Co-Contribution Threshold
For lower-income earners, the government will continue to offer co-contributions of up to $500 for eligible personal contributions.
2025–26 thresholds:
🔹 Lower threshold: $47,488
🔹 Upper threshold: $62,488
If you earn within this range, such as part-time employees or younger accumulators—and make personal contributions, the ATO will automatically assess your eligibility and deposit the co-contribution directly into your super.
What’s Not Changing
Contribution Caps
Concessional and non-concessional contribution caps remain at $30,000 and $120,000 respectively.
Division 293 Tax Threshold
This additional 15% tax still applies to individuals with incomes above $250,000. With recent pay increases or bonuses, some investors may now fall into this category, a reminder to factor this into your tax planning.
Companies and Shares
Merger Control Reforms
Starting 1 July 2025, Australia will begin transitioning to a mandatory merger notification regime. The full requirement kicks in from 1 July 2026, but businesses can begin voluntary notifications this year.
Investor tip:
For portfolios with M&A-heavy holdings, these reforms may affect deal activity and timelines. Consider whether tighter regulation could influence the investment case for any companies you own. This could create more uncertainty for takeover timelines and valuations.
Preparing for FY26
These changes are just one piece of your financial picture. A comprehensive portfolio review should include:
🔹 Any changes to income, lifestyle, or goals
🔹 Progress toward financial objectives
🔹 Investment performance and fit within your strategy
🔹 Regulatory and tax changes like those above
Need help assessing what this means for you? Book a review with our team to ensure your strategy stays aligned in FY26.
Compliance Disclaimer:
This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns.
Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917
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