Carey Group Quarterly Newsletter

Superannuation Guarantee Rate Increase to 12% (Effective 1 July 2025)

 

What’s Changing?

From 1 July 2025, the Superannuation Guarantee (SG) rate has increased from 11% to 12%. This change is part of the Federal Government’s long-term plan to strengthen retirement savings for Australian workers. It applies to all eligible employees, regardless of their income level or employment type.

Why It Matters

For employers, this means a higher minimum contribution must be made to each employee’s super fund. For employees, it means a slightly larger portion of their total remuneration is being directed towards their retirement savings.

What Employers Need to Do

• Update payroll systems to reflect the new 12% SG rate.
• Review employment contracts to ensure they clearly state whether super is paid on top of or included in salary packages.
• Adjust cash flow forecasts to account for the increased super contributions.
• Ensure SG contributions for the June 2025 quarter are paid by 28 July 2025 to avoid penalties and the Superannuation Guarantee Charge (SGC).

What Employees Should Know

• You don’t need to take any action to receive the increased SG—your employer is responsible for making the correct contributions.
• If you’re unsure whether your employer is paying the correct amount, you can check your super fund statements or log in to your myGov account linked to the ATO.

Planning Ahead

This increase is part of a broader strategy to improve retirement outcomes for Australians. While it may slightly increase costs for employers, it also helps employees build a more secure financial future.

If you’re unsure how this change affects your business or your take-home pay, we’re here to help. Contact our office for more tailored advice on 07 4760 5900 or email info@careygroup.com.au