Superannuation Updates for Healthcare Professionals – What’s Changing from 1 July 2025

If you're a healthcare professional focused on building a strong retirement strategy, it's important to stay up to date with the latest changes to superannuation. From 1 July 2025, some key thresholds remain unchanged—while one important cap is increasing, offering new opportunities for tax-effective retirement planning.

Contribution Caps – No Increase Yet

Concessional Contributions ($30,000 annual cap)
Concessional (before-tax) contributions include employer SG contributions, salary sacrifice, and personal contributions claimed as a tax deduction. These are taxed at 15% when entering your super fund (unless you’re a high-income earner, where Division 293 tax may apply).

Healthcare professionals earning under $500,000 in total super balance as at 30 June 2025 may be able to utilise unused concessional caps from previous years under the carry-forward rule, allowing you to contribute more and reduce taxable income.

Non-Concessional Contributions ($120,000 annual cap)
Non-concessional (after-tax) contributions aren’t tax-deductible, but they’re still a smart way to grow your super. If you’re under 75, you may be able to contribute up to $360,000 at once using the bring-forward rule, depending on your total super balance and contribution history.

Transfer Balance Cap Increases to $2 Million

This is the headline change for 2025:
From 1 July 2025, the Transfer Balance Cap (TBC) will increase from $1.9 million to $2 million.

This cap determines how much you can transfer into a tax-free retirement income stream (such as an account-based pension).
For healthcare professionals nearing retirement or planning to phase out of clinical work, this offers a greater opportunity to grow your savings in a tax-free environment.

• Over 60? Withdrawals from your pension and investment earnings within the pension account are tax-free.
• New to retirement phase? The full $2 million cap applies.
• Already started a pension? Your personal cap may vary between $1.6M and $2M, based on your past pension history.

Why This Matters for Medical Professionals

Healthcare professionals often face irregular income or fluctuating business revenue (e.g., GPs, dentists, or allied health practitioners running private clinics). Having a tax-efficient super strategy is essential for long-term wealth accumulation.

With the contribution caps staying steady, this is an excellent time to:

• Maximise current contribution opportunities
• Utilise catch-up concessional contributions before the caps increase in future
• Revisit your retirement strategy to take advantage of the increased transfer balance cap

Need Help with Your Super Strategy?

Superannuation can be complex—especially when balancing clinical practice, private business income, and long-term financial goals.
If you’re unsure how these changes impact your super or retirement planning, we’re here to help.

Speak with a financial adviser who understands the unique needs of healthcare professionals. Contact us today to get personalised advice and make the most of the 2025 superannuation changes.