Last night, the Government delivered the Federal Budget for 2025-26. While there were no new measures or surprises for superannuation, there was a key focus on cost-of-living measures ahead of the upcoming election. We’ve summarised the highlights below. It’s important to note that at the time of publication, these announcements are proposals only. We’ll keep you updated as developments occur.

Super-related announcements

• Unpaid super allocation support – additional money has been allocated to the ATO to increase tax and superannuation compliance, expected to help an additional $31 million in unpaid super to be reunited with workers.¹
  
  

Business-related announcements

• Energy rebate – approximately 1 million small businesses will receive $150 in rebates applied to their electricity bills from 1 July 2025 to 31 December 2025.
• Buy Australian campaign – $20 million allocated to promote Australian-made products and support local businesses.
• Apprentice hiring incentives – there has been a six-month extension for businesses hiring apprentices in priority occupations—allowing them to possibly access up to $5,000 in hiring incentives. From 1 July 2025, eligible apprentices in housing construction occupations will receive $10,000 over the course of their apprenticeship.²
• Non-compete clauses banned – workers earning under $175,000 per year will no longer be restricted from changing jobs or starting their own businesses. This could intensify competition for skilled workers and impact hiring strategies.³
• Support for local manufacturing – $3.2 billion over 19 years for Australia’s metals industry, including funding for aluminium smelters and iron projects.⁴
• Franchise oversight – the Australian Competition and Consumer Commission (ACCC) will receive $7.1 million over two years to strengthen enforcement of the Franchising Code of Conduct.
• Supermarket pricing investigation – $38.8 million allocated to the ACCC to investigate deceptive pricing practices and unconscionable conduct among supermarkets and retailers.
• Support for fresh produce suppliers – $2.9 million allocated to improve pricing transparency and outcomes for fresh produce suppliers selling to large grocery businesses.
• National licensing for electricians – the Government will design a national licensing scheme for electricians, allowing them to work across states without needing multiple licenses or fees. An investment of $900 million in the National Productivity Fund to enable design and implementation. This reform aims to ease workforce shortages, boost productivity, and support housing affordability.
• First Nations entrepreneurs and businesses – funding to support First Nations women in business and strengthen the Indigenous Procurement Policy.⁵
• Crackdown on illegal business practices – Australian Securities and Investments Commission (ASIC) to receive funding that will target illegal phoenixing activity.
• Tax relief for brewers and distillers – the Government is freezing draught beer excise indexation for two years from August 2025 and providing tax relief for Australian brewers, distillers, and wine producers. This is expected to support hospitality businesses and reduce costs for the industry.

Super changes from 1 July 2025

While not a Budget announcement, here are few changes coming from 1 July related to super and your business: 

• SG rate increases to 12% – the minimum superannuation guarantee (SG) rate you must pay for each eligible employee from 1 July 2025 will increase to 12% of their ordinary time earnings (OTE). This is the final planned increase and aims to reduce financial pressure on the Aged Pension, to help off-set Australia’s ageing population and improve financial outcomes at retirement.
• Super on Paid Parental Leave – for babies born or adopted on or after July 1 2025, eligible parents for the first time will receive a 12% super contribution on their Paid Parental Leave payment, paid directly to their nominated super fund by the ATO from 1 July 2026.

Payday Super reforms

The Government confirmed that the previously announced Payday super reforms are on track to start on 1 July 2026, supported by a Mid-Year Economic and Fiscal Outlook investment of $404.1 million over four years to meet the implementation timeline. Employers will be required to pay their employees' super at the same time as their salary and wage. These reforms are expected to benefit nine million Australians by improving compound investment returns.⁶

Where to find out more

This is a snapshot of the announcements for Australian businesses. As the federal election approaches, the measures in this budget are contingent on Labor's re-election. All the announcements could be subject to change after the election.

Want to know more about how this Budget might affect you or your employees’ super or your own personal finances? You can read more here. For a full breakdown on the Budget, visit www.budget.gov.au.

We’re here to support you

All over Australia. All industries. All sizes. We’re the fund that cares about you, your business, and your employees—supporting you every super step of the way. Contact your Employer Relationship Manager or call us on1800 005 166 from 8am to 7pm (AEST/AEDT) Monday to Friday.

¹Budget Paper No. 2: Budget Measures | Page 7
²Housing | Budget 2025–26
³Statement 1: Budget Overview | Page 24
⁴Budget Paper No. 2: Budget Measures | Page 63
⁵Budget 2025-Overview | Page 53
⁶Budget 2025: Payday super on track; now let’s boost low-income super | SMC Australia

All information, rates and/or fees are current at the time of production and are subject to change. Changes to government legislation and superannuation rules made after this time may affect the accuracy of the information provided. You may wish to obtain professional advice before acting on any of the information contained in this document.