The superannuation guarantee is legislated to increase from 9.5 per cent to 12 per cent in 0.5 percentage point increments from 2021 through to 2025. This means the superannuation guarantee rate will increase to 10 per cent from 1 July 2021 and rise by 0.5 per cent per year thereafter until it reaches 12 per cent by 2025.

What is the Super Guarantee?

The Super Guarantee or SG for short, is the contribution an employer is required to make into a super fund on behalf of an employee. The current rate is 9.5% of an employee's base salary, with this rate currently set to continue until 1 July 2021, when it is due to increase to 10%.

Below are the past and present SG rates, as well as the currently legislated future changes to the rate from the Australian Government:

Financial Year

Super Guarantee Rate

1 July 2002 – 30 June 2013

9%

1 July 2013 – 30 June 2014

9.25%

1 July 2014 – 30 June 2021

9.5%

1 July 2021 – 30 June 2022

10%

1 July 2022 – 30 June 2023

10.5%

1 July 2023 – 30 June 2024

11%

1 July 2024 – 30 June 2025

11.5%

1 July 2025 – 30 June 2026 and onwards

12%


Who qualifies for the superannuation guarantee?

Almost all full-time, part-time and casual employees over 18 years of age, earning more than $450 per month are eligible for super guarantee contributions, or SGC. Employees under 18 years and private domestic workers (such as nannies) who earn more than $450 per month and work more than 30 hours a week are also eligible. Even certain contractors may be deemed to be eligible.

If you would like any further information or assistance with complying with your super guarantee obligations please contact us on 1300 885 761.