Steady Increase in the Super Guarantee (SG)

The Super Guarantee (SG), which mandates the percentage of an employee’s earnings that employers must contribute to their super fund, has been set to rise steadily in the coming years. Starting from 1 July 2024, the SG will increase from the current rate of 11% to 11.5%, with an eventual increase to 12% on 1 July 2025. This increase follows the previous trajectory set out by the government to bolster retirement savings for Australians.

Impact on Employees

For employees, this increase means a larger portion of their income will be going into their superannuation fund. This helps to boost their retirement savings and ensures a more secure financial future. Given the power of compound interest, these small increases in super contributions can add up significantly over the course of a worker’s career, providing a strong safety net in retirement.

New Requirements for Employers

Another significant change coming is the requirement for employers to pay employees’ super contributions at the same time as their salary and wages. This new rule will take effect from 1 July 2026 and aims to address the persistent issue of unpaid super, which amounts to approximately $5 billion annually. By aligning the timing of super payments with salary payments, employees will be better able to keep track of their super contributions and identify any discrepancies more easily.