1 July 2025
The term 'superannuation guarantee' might not be one you come across every day, but it's important to understand because it dictates the minimum percentage of your earnings that your employer has to pay into your super. This money will help fund your retirement.
To understand the importance of the superannuation guarantee, you need to know how it relates to your super. The super guarantee (SG) is the money your employer pays into your chosen super fund so that it can be invested to help save money for your retirement. Throughout your working life, you can generally help grow your super by making extra, voluntary contributions1 and your employer has a legal obligation to contribute regular payments on your behalf2. Many people will use their super alongside any government age pension payments they're entitled to, to live a more comfortable lifestyle when they stop working.
The superannuation guarantee rate
The superannuation guarantee dictates the minimum percentage of your earnings your employer needs to pay into your super fund. The Australian Government controls and legislates the super guarantee.
SG contributions are important for your future financial security
The superannuation guarantee is an important part of the superannuation system. It was introduced on 1 July 1992 to increase the financial security of Australians once they are no longer working. Its aim is to provide funding for Australians in retirement, so that fewer people have to rely solely on the Government Aged Pension as a source of income.
What is the superannuation guarantee rate?
From 1 July 2025 the superannuation guarantee rate increases to 12%. This 0.5% increase is the last one currently legislated by the Australian Government.
From 1 July 2025 the superannuation guarantee rate increases to 12%. This is an increase of 0.5%.
Calculate what 12% SG looks like for you
A rise to 12% SG means you will be paid more super and therefore have a higher balance to earn returns from over your accumulation years, and in retirement.
Industry Super Australia (ISA) have developed a calculator that shows what that extra percentage could look like for you.
CALCULATE YOUR RETIREMENT INCOME
Am I entitled to be paid superannuation?
If you’re an employee, and aged 18 or over then you’re generally eligible to receive SG super contributions. If you’re under 18, you must also work more than 30 hours per week to be entitled to SG contributions. If you’re a contractor, you may also be eligible depending on whether you’re considered an employer for super guarantee purposes.
Refer to the ATO website for more information
Keep track of your super increase to 12%
Log in to your superannuation account to make sure you’re being paid super at the correct SG rate.
If you’re an AustralianSuper member you can download the free App to view your most recent payments and your balance. You can set an alert for every time a contribution is made to your account. You can also check your insurance, update personal details and make contributions.
What should I do if I’m not being paid super?
Talk to your employer first. If you’re unable to resolve your unpaid super query with them, visit the ATO website or call them on 13 10 20 for a step-by-step guide on how to recover missed or underpaid super.
Remember, from 1 July 2025 it's compulsory for employers to pay at least 12% of your salary to a super fund like AustralianSuper. These payments need to be made by quarterly deadlines set by the ATO.
ATO.GOV: SUPER ENTITLEMENTS AND MISSING SUPER
READ MORE: AUSTRALIANSUPER.COM/SUPERANNUATION
References:
- Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.
- Eligibility requirements apply. Visit www.ato.gov.au for full details.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
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