New Rules, New Opportunities: Superannuation Strategies for 2025

For high-performing business owners and executives, particularly in industries like mining where income can be substantial and complex, superannuation is more than a retirement vehicle. It’s a strategic lever for long-term wealth creation, tax efficiency, and intergenerational planning.

With significant changes to Australia’s superannuation system taking effect from 1 July 2025, now is the time to reassess your strategy. Whether you’re managing executive share schemes (ESS), planning for succession, or simply looking to optimise your financial position, these updates present a timely opportunity to act with intention.

What’s Changing from 1 July 2025?

The government’s latest reforms are designed to help Australians build more robust retirement savings. Key changes include:

• Superannuation Guarantee (SG) rate increases to 12%of ordinary time earnings. This means more employer contributions flowing into your fund automatically.
• Concessional contributions cap continues as $30,000, up from $27,500 in the 30 June 2024 financial year. This includes employer contributions, salary sacrifice, and personal deductible contributions.
• Non-concessional contributions cap continues as $120,000, up from $110,000 in the 30 June 2024 financial year. Eligible individuals can still use the bring-forward rule to contribute up to $360,000 in one year.
• Bring-forward thresholds adjustin line with the new caps, offering greater flexibility for those with windfalls or liquidity events.

These changes are particularly relevant for business owners and executives with variable income, deferred bonuses, or ESS vesting events, where timing and structure can significantly impact tax outcomes.

Executive Share Schemes (ESS): A Hidden Super Opportunity

For many executives, ESS vesting events can create substantial tax liabilities. When shares vest, their value is included in your taxable income, often pushing you into the top marginal tax bracket. But there’s a smarter way to manage this.

Instead of selling shares to cover the tax bill, consider contributing them to super, or your spouse’s super. Some funds accept in-specie contributions, allowing you to transfer the ownership of shares without transaction costs, while benefiting from super’s concessional tax environment.

Let’s say you’ve received $50,000 worth of vested shares. Selling them to cover the tax bill (47%) leaves you with just $26,500. But if your spouse earns between $45,000 and $135,000 and has unused concessional cap space, you could transfer those shares to their super fund. The result? A tax saving of over $4,500, without needing to liquidate assets.

This strategy is particularly valuable when:

• You want to retain your shares for long-term growth.
• You or your spouse have unused concessional cap space.
• You don’t need all the value of your shares to meet personal expenses.

Transfer Balance Cap Increase: More Room for Retirement Planning

From 1 July 2025, the Transfer Balance Cap (TBC) will rise from $1.9 million to $2 million due to CPI indexation. This lifetime cap limits how much can be transferred from a super accumulation account into the tax-free retirement phase.

This increase opens new planning opportunities, especially for those approaching retirement or managing defined benefit income streams.

These changes may benefit those with higher balances or those planning to make large contributions in the near term. It’s a timely reminder to review your superannuation strategy and ensure you’re making the most of the available caps and offsets.

Here are several ways to make the most of the updated contribution rules from 1^st July 2025:

• Salary Sacrifice: Redirect part of your pre-tax salary into super. This reduces your taxable income and boosts your retirement savings in a tax-efficient manner.
• Personal Deductible Contributions: If you receive a bonus or have surplus cash, consider making a personal contribution and claiming a tax deduction.
• Carry-Forward Rule: If your total super balance is under $500,000, you can carry forward unused concessional cap amounts from the past five years.
• Bring-Forward Rule: Planning to sell an asset, earn a large bonus or receive an inheritance? You can contribute up to $360,000 in a single year using the bring-forward rule, provided your total super balance is under $2.0 *million and you’re under 75.

*The maximum amount you can contribute using the bring-forward rule will depend on your total superannuation balance, as shown in the table below.

• Spouse Contributions: If your spouse earns less than $40,000, contributing $3,000 to their super could generate a $540 tax rebate.
• Government Co-Contribution: If your spouse earns under $62,488 and makes a personal after-tax contribution, the government may contribute up to $500.

Life Stage Considerations for Executives and Their Families

While your own super strategy may be well established, it’s worth considering how superannuation planning can benefit your broader family unit.

In your 20s, the First Home Super Saver Scheme (FHSSS) allows voluntary contributions of up to $15,000 per year (to a total of $50,000) to be withdrawn (before tax implications) for a first home deposit. If the funds aren’t used to purchase a property, they can be returned to super or withdrawn with tax penalty. With interest rates easing, this could be a compelling way for younger professionals, or your own children, to grow a deposit while benefiting from super’s tax environment.

In your 30s and 40s, when financial commitments like mortgages and school fees are front of mind, salary sacrificing – even in small, consistent amounts – can make a meaningful difference over time. Bringing total contributions up to 15% of income (including employer contributions) can significantly boost your retirement balance, especially when your marginal tax rate is higher than the 15% super tax.

In your 50s, the focus often shifts to maximising contributions before retirement. With the non-concessional cap rising to $120,000 and the bring-forward rule allowing up to $360,000 in one year, this is a prime time to inject larger sums into super. For those with the means, a two-year strategy – contributing $120,000 before 30 June in one year and $360,000 after the following 1 July can allow up to $480,000 to be added in a short window, subject to eligibility.

And for those planning to sell the family home, the downsizer contribution remains a powerful tool. Up to $300,000 (or $600,000 per couple) can be added to super without affecting contribution caps, provided the home has been owned for at least 10 years and was your main residence at some point.

Why This Matters

For executives and professionals, superannuation isn’t just about retirement, it’s about strategic wealth management. At Resources Unearthed, we understand the unique financial landscape faced by executives and professionals in the mining industry. From ESS vesting to super contribution strategies, we help you navigate complexity with clarity and confidence. To review your superannuation strategy and find out whether you and your family can take advantage of the superannuation concessional contributions catch-up provision, please contact James Marshall on (07) 3007 2000 or email contact@resourcesunearthed.com.au.

To learn more about James, visit this link.

Resources Unearthed is a solutions hub that connects senior executives, established professionals and business owners in mining and resources with proven specialist advisers.

Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This advice is general and does not take into account your objectives, financial situation or needs. You should not act on it without first obtaining professional financial advice specific to your circumstances.

*Please note: For advice and services relating to this matter that are not offered under the Fortnum Private Wealth AFSL, in accordance with our collaborative advice model, when required, such matters are referred to appropriately qualified professionals.