2025 has been a big year for superannuation with the Super Guarantee finally reaching 12%, super now being paid on Commonwealth Parental Leave, payday super legislation passing Parliament and the Low Income Super Tax Offset (LISTO) receiving a surprise but much needed boost.
We’ve been busy crunching the numbers all year at SMC. Here is our pick of the best from what we found.
1. $7,700 in retirement more thanks to payday super
At Christmas number one we have the passage of payday super laws. This means workers will see their contributions paid at the same time as wages, rather than quarterly. Our analysis shows this simple change could add an extra $7,700 to the average worker’s retirement savings.
2. Up to $60,000 boost for low-paid workers
After years of advocacy, change came suddenly with the Federal Government’s announcement that it will lift the Low Income Superannuation Tax Offset, known commonly as the “LISTO”. This fairness fix will boost the super of around 1.3 million low-paid workers – many of them women – by up to $60,000. That’s not just a boost; it’s a lifeline for those who need it most.
3. US investment to surge past US$1 trillion
Super has been on the mind of US President Donald Trump recently. Not only was investment from Australian super funds referenced in a recent deal signed between the US and Australia, President Trump also suggested the US could adopt a similar super system in the US. It’s easy to understand why Australian super capital is such a powerful tool for economic diplomacy. Investments in the United States are set to rise to more than US$1 trillion over the next decade.
4. Complexity could cost retirees $136,000
While the savings phase of the super system is working well, complexity in the retirement phase is costing Australians. A report launched by SMC in October warns that complexity could be stripping up to $136,000 from the retirement savings of some new retirees.
5. $11,000 better off each year
To put into context how the savings phase is doing what it was designed to do: low- and middle-income retirees are better off by more than $11,000 annually thanks to super. That’s real money making a real difference.
