What’s changed for your super this year?

As usual, the new financial year has brought a few changes in the world of personal finance. Some of the main ones that took effect on 1 July 2014 include:

  • your employer must contribute more to your super on your behalf
  • depending on your age, the annual limits on how much you can put into your super yourself may have increased
  • changes to life insurance within super.

More super

On 1 July, the amount of your salary that your employer must contribute to your super on your behalf rose from 9.25% to 9.5%.

This amount – called the super guarantee, or ‘SG rate’ – will gradually reach 12% by 1 July 2022. This follows confirmation in May’s federal budget that the increase is being deferred (it was originally going to reach 12% by 1 July 2019).


SG rate

1 July 2013 – 30 June 2014


1 July 2014 – 30 June 2018


1 July 2018 – 30 June 2019


1 July 2019 – 30 June 2020


1 July 2020 – 30 June 2021


1 July 2021 – 30 June 2022


1 July 2022 and later



Know your limits

There are two ways you can put extra money into your super yourself, above what your employer must contribute:

  • Contributions from your gross (i.e. pre-tax) salary (sometimes called ‘concessional contributions’)
  • Contributions from your after-tax earnings (‘non-concessional contributions’)

For both types, there are limits (‘caps’) on how much you can contribute each year. For most people, these limits have increased from 1 July.


Your age

Old rate

New rate from 1 July

Pre-tax contributions

Under 50



50 or over



60 or over



After-tax contributions

Under 65

(over 3 years)

(over 3 years)

Over 65



There are financial penalties for exceeding your super contribution cap, even if you do so inadvertently. However, May’s federal budget announced there would be more flexibility around these penalties.

Changes to life insurance inside super

  • On 1 July 2014 new legislation came into effect that changes the way life insurance can be offered through super.
  • These changes will only affect someone who joins a new super fund after 30 June, or to someone who takes out a new type of insurance cover within their super fund after 30 June (for example, they already have life and total and permanent disablement cover, but now want to add income protection cover too).
  • People who joined their super fund before 1 July 2014 can keep their existing insurance benefits without their terms and conditions having to change.

The 2014 federal budget

Some of the key announcements in May’s budget were:

  • age pension eligibility will increase to age 70 by 1 July 2035
  • a new 2% levy on high income earners will apply for the next three financial years
  • changes to Family Tax Benefits A and B.

The budget brought no changes to the tax payable on super benefits or to the age at which you can get access to your super.

Don’t forget that legislation will need to be passed before the budget proposals can take effect.

Read more about the federal budget

What next?

Talk to your adviser if you’d like to know more about what the federal budget or recent legislative changes may mean for you.

Tags: Super