The global economy has seen its fair share of shake-ups lately, from shifting trade policies to renewed market volatility. And if you’re feeling a ripple of uncertainty in your investments and risk appetite, you’re not alone.
Against this current economic backdrop, the Australian Government is rolling out a new round of superannuation reforms. These changes aren’t just political noise. They’re designed to modernise how super works, strengthen retirement outcomes, and close long-standing gaps in the system.
It’s a reminder that your super is more than just a savings pot. It’s a powerful, evolving investment vehicle that deserves attention.
In our latest guest post, our partners and financial advice specialists, Maxim Private Clients, share their insights on the market, the upcoming super reforms and the principles to stick to.
Navigating your super strategy through global market shifts – Maxim Private Clients
In early April 2025, President Trump announced new tariffs on imported goods, increasing the costs of goods being imported into the US.
The tariffs aim to boost domestic manufacturing.
On a positive note, these tariffs are expected to have a minimal impact on Australian exports. This is because only 4% of our home-grown experts go to the US, the largest being meat.
Many Australian companies remain unaffected. In fact, some may actually benefit from supply shifts. For example, retailers like Wesfarmers and JB Hi-Fi could see discounted Chinese imports, providing opportunities for growth.
Despite this, due to these shifting trade policies, market uncertainty has increased as investor confidence erodes. Continued unpredictability is affecting global investment sentiment.
But the reality is that market disruptions don’t change the fundamentals of strong businesses.
Investors may find valuable opportunities to buy quality assets at discounted prices, akin to an investment ‘Black Friday sale’.
Upcoming changes to superannuation
Just as staying invested through volatility can open the door to long-term gains, understanding regulatory changes, such as the upcoming super reforms, can help you make more informed, strategic decisions about your retirement savings.
Here are some of the key ones and their potential impacts:
Increase in superannuation guarantee (SG) rate
As of 1 July 2025, employer contributions will increase to 12% of earnings.
This is the final step in a series of increases.
Potential impact: This super guarantee increase aims to strengthen retirement savings and reduce future reliance on the Age Pension.
Proposed new tax on large super balances (Division 296 tax)
Potentially effective from 1 July 2025, a proposed additional 15% tax could apply to earnings on superannuation balances over $3 million. This would bring the total tax rate to 30% on the portion above the threshold and include unrealised gains.
Potential impact: Individuals may be taxed on increases in asset values even if those assets haven’t been sold.
Payday super reform
From 1 July 2026, employers in Australia will be required to pay superannuation at the same time they pay wages, instead of quarterly, which is the current rule.
Potential impact: The payday super reform will boost retirement savings, reduce unpaid super, and give workers greater visibility and confidence that their entitlements are being paid on time.
Superannuation on parental leave pay
Starting 1 July 2025, super contributions will be made on government-funded paid parental leave (PPL) for eligible parents of babies born or adopted on or after this date.
Potential impact: This change helps parents keep growing their retirement savings while taking time off to care for a new child, reducing the long-term super gap often experienced after parental leave.
4 essential super investing principles
Recent changes to superannuation have important implications for your retirement savings. Understanding these key investment principles will help you stay on track and make informed decisions, regardless of market fluctuations.
1. Super is a long-term investment
Your super is designed to build wealth gradually over many years, often decades. It’s essential not to be swayed by short-term market fluctuations or media headlines.
Reacting to every dip can lead to poor decisions that hurt your retirement savings. Instead, stay focused on your long-term goals and remember that short-term volatility is normal.
2. Diversification is crucial
Spreading your investments across different asset classes, such as shares, property, fixed income, and international markets, helps reduce risk. Different assets perform well at different times, so diversification smooths out the ride and helps protect your balance from large losses.
Owning high-quality, well-managed investments across various sectors supports stronger, more reliable growth over time.
3. Markets historically recover
Markets can be unpredictable in the short term.
But history shows they tend to bounce back after downturns. Economic cycles come and go, and market corrections are a natural part of investing.
Staying invested means you’re positioned to benefit from recoveries and the growth that follows.
Pulling out of the market during a dip often means missing the best days, which can significantly impact your returns.
4. Timing the market is nearly impossible
Trying to predict when to exit and re-enter the market consistently is extremely challenging, even for professional investors.
Moving your super into cash during downturns with plans to reinvest later often results in missing key growth days. This can significantly reduce your overall returns.
A disciplined approach, where you remain invested according to your plan, usually delivers better long-term results.
By keeping these principles in mind, you can navigate market fluctuations with greater confidence and keep your retirement savings on track.
Take a look at these two graphs, which visually demonstrate why it’s essential to focus on the long term to improve your financial position and investment returns, rather than getting too caught up in market noise on a day-to-day basis.
Stay invested and focus on long-term outcomes
Market disruptions, such as US tariff changes and global volatility, can stir uncertainty. But they also remind us why long-term, well-diversified superannuation strategies matter.
While short-term headlines may rattle investor confidence, quality investments tend to hold their value over time.
For super fund members, these global shifts reinforce the importance of staying invested, resisting the urge to react emotionally, and focusing on long-term outcomes. In fact, periods of volatility often present rare opportunities to grow your retirement savings by picking up strong assets at lower prices.
For tailored advice and opportunities on your super strategy, speak to the team at Maxim Private Clients today.
