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 10.5 per cent from 1 July 2022 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 10% of an employee's base salary, with this rate currently set to continue until 1 July 2022, when it is due to increase to 10.5%.
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?
From 1 July 2022, your employer may need to contribute to your super regardless of how much you are paid per month. If you're under 18, you need to work more than 30 hours in a week to be eligible.
Your eligibility is determined when you are paid salary and wages, not when the income is earned. This means if you are paid on or after 1 July 2022, you will be paid super regardless of how much you have earned. This applies even if some of the pay period is before 1 July 2022.
This applies whether you work casual, part-time or full-time hours, and if you are a temporary resident. You may also be eligible if you are a contractor who is paid primarily for labour, even if you have an Australian business number (ABN).
If you would like any further information or assistance with complying with your super guarantee obligations please contact us on 1300 885 761 .
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