Superannuation boost to turbocharge retirement dreams: Cbus Super
1 July 2025
MEDIA RELEASE
The superannuation guarantee increase from 11.5% to 12% on 1 July will deliver tens of thousands in additional retirement savings for building and construction workers – making a real difference to retirement balances and choices, according to industry superannuation fund, Cbus Super.
New modelling by Cbus Super shows a 21-year-old tradie earning $80,000 a year, is projected to have around $25,000 extra in their balance when they reach retirement age thanks to the final Superannuation Guarantee rise to 12 per cent.
On 1 July 2025, the Superannuation Guarantee rises to 12 per cent (from 11.5 per cent).
Cbus Super Head of Advice Matt King said, “As a result of the Super Guarantee rise, young workers will enjoy extra in their retirement savings.
“While the half a per cent increase may look modest on a weekly payslip, for a 21-year-old construction worker earning $80,000 annually, it could translate to around $25,000 in additional retirement savings through the power of compound investment returns*.
"As the rise is invested for a member over decades, it’s the difference between having some comfort and enjoying retirement after decades of working hard. It could even mean funding a retirement dream such as buying a boat or a motorbike.
“It’s a real win for our members."
The increase from 11.5% to 12% represents the final step in a series of increases to the Superannuation Guarantee, bringing it to the long-targeted 12% level. The journey to reaching this target began in 1992 when the Superannuation Guarantee came into law at a 3% mandatory rate.
Mr King said, “In one generation, the ongoing commitment to superannuation and the rises in SG, means that superannuation has transformed how millions of workers retire. The commitment to superannuation rises has created meaningful improvements in financial security and retirement choices. It’s a real Australian success story.”
Employers are required by law to implement this increase from 1 July 2025, with no action needed from employees.
Cbus has also emphasised the importance of ensuring workers receive all entitled superannuation payments.
"The upcoming increase will only have a powerful impact if workers receive their full entitlements, so take a minute to check your payslips to see that this new contribution is being made," said Mr King.
Over the past five years, Cbus has recovered more than $600 million in unpaid super for over 665,000 members, demonstrating its commitment to protecting members' retirement savings.
Media enquiries: media@cbussuper.com.au or +61 3 9100 4930
Increases in Superannuation Guarantee and benefits in retirement
* This is a projection for illustrative purposes assuming a 21-year-old worker with an $11,500 balance (starting balance based on average Cbus balance for members under age 25 as at 18/06/2025), earning $80,000 + 12% SG a year, works until age of 67 compared to the same worker receiving 11.5% SG a year. Returns in the projection are in today’s dollars and adjusted for inflation of 2.5% p.a. and a further 1.2% p.a. rise in living standards. We make a default insurance premium assumption that $214 will be charged and deducted in future years until retirement and will increase with inflation each year. Results are shown at 1 July upon reaching age 67. The results shown are estimates only and are not guaranteed and should not be relied upon as a true representation of any actual superannuation contributions, retirement benefit or taxation as tax and other rules can change. The 5.75% per annum investment return used in the calculation, is based on the Growth (MySuper) investment objective of CPI + 3.25% p.a., assuming CPI of 2.5% p.a. The return is after investment fees and taxes and excludes fees and costs that are deducted directly from members’ accounts. It is not a guaranteed rate of return. Current administration fees and costs of $52 per year, plus 0.19% of the account balance per year have also been assumed in the calculation. Figures are correct as at 18 June 2025.
This information is about Cbus and doesn’t take into account your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Refer to Cbus Product Disclosure Statement, Target Market Determination and Financial Services Guide for more information. Contact us or visit cbussuper.com.au for a copy.
Cbus is the leading Industry Super Fund representing those that help build, maintain and shape Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 900,000 members (as at 31 December 2024) and we manage $100 billion of our members’ money (as at 31 December 2024). Our members include workers and retirees, their families and employers. As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, welcoming 17,000 new members and establishing itself as the leading fund for energy and electrical workers in Australia.
Issued 1 July 2025, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super) ABN 75 493 363 262.