Carey Group Quarterly Newsletter

Following the May 2024 Federal Budget, the legislated increase to the Superannuation Guarantee Contribution (SGC) has been maintained, raising the rate to 11.5% from July 1, 2024. This change is part of a strategic phased approach designed to enhance retirement savings for Australians. An additional 0.5% increase is scheduled for July 1, 2025, which will bring the Super Guarantee to a solid 12%. These adjustments are critical in supporting long-term financial planning, ensuring that individuals have more substantial superannuation balances upon retirement.

The incremental increases to the Super Guarantee are particularly beneficial when considering the power of compound interest. Over time, even modest increases in contributions can significantly enhance super member balances, providing greater financial security in retirement. By adhering to this phased approach, the government aims to bolster the retirement savings system, enabling individuals to accumulate more wealth during their working years. This strategy not only helps individuals plan more effectively for the future but also strengthens the overall sustainability of the superannuation system in Australia.

For more detailed information on these changes and how they might affect your superannuation, visit the Australian Taxation Office’s official page on Super Guarantee rates and thresholds here.