Super Guarantee Rate Increased to 12%

The Superannuation Guarantee (SG) rate increased to 12% on 1 July 2025, marking the final scheduled increase in the five-year phase-in period. Employers must apply this rate to all salary and wages paid to eligible employees on or after this date, even if some or all of the pay period relates to work performed before 1 July.

Key Employer Obligations:

• Apply the 12% SG rate to all eligible employees' ordinary time earnings from 1 July 2025 onwards. 

• Pay SG contributions on time at least quarterly, with the next due date being 28 July 2025.

• Ensure payments are made to the correct super fund, allowing sufficient time for processing if using a commercial clearing house.

Employers who fail to meet these obligations may be liable for the Superannuation Guarantee Charge (SGC), which includes the unpaid SG amount, interest and an administration fee.

This upcoming change is an opportunity for employers to review employment contracts, payroll systems and cash flow planning. Businesses should confirm whether employment agreements state "base salary plus super" or a "total remuneration package," as this will determine whether the SG increase impacts take-home pay or results in higher total employment costs.

For more information and tools to assist with SG calculations, visit the ATO Super Guarantee page.