Super guarantee increases to 10%

From 1 July 2021 the superannuation guarantee rate increases from 9.5% to 10%. Over your working years this increase will have a positive impact on the amount of super you save and can spend in retirement.

The super guarantee (SG) rate has been set at 9.5% since 1 July 2014. From 1 July 2021, it increases to 10%, and has been legislated to rise incrementally each year until it reaches 12% in 2025.  This is good news for workers receiving superannuation.     

See what impact the increase could have on your super and what you need to do to make sure you’re getting 10%.


What difference does 10% SG make?

Increasing the SG means people won’t have to work as long to save the same amount for their retirement. Even small increases to the SG could make a big difference in the long run.

Small increases to the superannuation guarantee could make a big difference in the long run.
The examples below show how a rise to 10% could have a significant impact on your retirement outcome.
Bernadette, 41 years old
Bernadette is 41 years old and earning $70,000. Her super account balance is $78,000.
With an SG of 9.5% (the current legislated rate until 30 June 2021), Bernadette would have a lump sum of $360,000 by age 67.
Thanks to the 10% rise she’ll have an extra $10,000 to spend in retirement. That’s $10,000 extra to spend on a holiday, home renovations or plenty of dinners out with friends and family^.
Ahmed, 25 years old
Ahmed is 25 years old and new to the workforce. He’s just graduated from uni and started his first job. He’s earning $74,000. If Ahmed works until he’s 67 with no career breaks he'll have $460,000 in super with a SG rate of 10%. That’s $20,000 more than if the rate stayed at 9.5%^.             
When the SG is increased to 12% by 2025, and both Bernadette and Ahmed are with a high-performing super fund, their balances could be even stronger.

  ^ Assumptions: Investment return is 6.5% a year, net of fees and tax, salaries increase at 3.5% a year, retirement at age 67. All results expressed in ‘today’s dollars’. The case study is provided for illustration purposes only and isn’t a representation of the actual benefits that may be received or the fees and costs that may be incurred. Investment returns are not guaranteed.

How to choose your first super fund


Keep track of your super increase to 10%

Your employer should be aware of the super guarantee rate increase. But it’s important to check you’re being paid the right amount of super. Paying super is a legal requirement, set by the Australian Government. If you meet the eligibility requirements, your employer must pay you super by law.

Check your pay slips to see that you’re being paid super at the new legal SG rate of 10%. If you’re an AustralianSuper member, you can download the free App to view your most recent super payments and your balance. You can also check your insurance, review your investment returns, update your personal details, and make extra contributions.



Choose the right super fund for you

With 10% of your wages or salary being contributed to your super for retirement, it’s important you choose a good fund with strong, long-term investment performance and low fees. 




What to do if your employer isn’t paying you the correct amount of super

If you discover you’re not being paid the right amount of super, talk to your employer first. If you’re unable to resolve your unpaid super query, visit the ATO website to check whether you’re eligible for SG contributions and for a step-by-step guide on how to recover missed or underpaid super. You can also call the ATO on 13 10 20.

Remember, from 1 July 2021 it's compulsory for employers to pay eligible workers at least 10% of your salary to an eligible super fund such as AustralianSuper. There are quarterly deadlines for these payments, which are set by the ATO.

Check your pay slips to see that you’re being paid super at the new legal SG rate of 10%.
How much money you need to retire. The ASFA Retirement Standard

The amount you need will depend on your personal objectives and circumstances. The Association of Superannuation Funds of Australia (ASFA) has created a Retirement Standard which estimates the cost of living both ‘comfortable’ and ‘modest’ retirement lifestyles.

Category Savings required at retirement
Comfortable retirement for a single person $545,000
Comfortable retirement for a couple $640,000
Modest retirement for a single person $70,000
Modest retirement for a couple $70,000

All figures assume retirees own their home and receive at least a part Age Pension. Source: ASFA Retirement Standard (PDF)

In addition to the 10% SG contributions, your super could grow through the investment performance of your fund, compounding, and any extra contributions you add.  


Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs.  Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 

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