Superannuation Guarantee Increasing to 12% from 1 July 2025 – What Employers Need to Know

By Nicole Swaine
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The Australian Government has confirmed that the Superannuation Guarantee (SG) will increase from its current rate of 11.5% to 12% on 1 July 2025.

This change is part of a staged plan to improve retirement savings for Australian workers. For employers, it’s a timely reminder to review payroll systems, ensure compliance, and communicate clearly with staff ahead of the transition.

 

 What is the Superannuation Guarantee?

The Superannuation Guarantee is the minimum percentage of an employee’s ordinary time earnings that employers must contribute to their super fund. This is separate from the employee’s salary or wages.

From 1 July 2025, the required SG contribution rate will increase to 12%, in line with the Government’s legislated schedule.

 See the SG rate schedule here:
 Super guarantee percentage – ATO

 When Do Employers Need to Pay?

Employers must pay the Super Guarantee at least quarterly, by the following due dates:

  • 28 January
  • 28 April
  • 28 July
  • 28 October

Payments must be received by the employee’s super fund by the due date — not just initiated — to avoid penalties.

More info:
 Due dates for super guarantee contributions – ATO

 How Do You Know Who’s Eligible and How Much to Pay?

The ATO provides an online eligibility tool to help employers determine if their workers are entitled to super — including contractors in some cases.

You can also use the Superannuation Contributions Calculator to work out the correct contribution amount based on earnings and dates.

What Should Employers Do Now?

  •  Update your payroll software ahead of 1 July 2025
  •  Review employment contracts and budgeting for the increased SG rate
  •  Communicate the change to employees
  •  Check your current SG processes and ensure you’re meeting your obligations

At Explore Potential, we support employers in staying ahead of legislative changes and reducing compliance risk. If you’re unsure how this SG increase affects your team or systems, feel free to reach out for tailored HR advice.

 

Need help preparing for the SG increase? Get in touch with us today.