Superannuation Guarantee 2025: Rates, Changes & What Aussies Must Know

Superannuation Guarantee (SG) is a cornerstone of Australia’s retirement system. With the next scheduled rate increase and compliance updates on the horizon in 2025, both employers and employees should be across what’s new, how it affects pay packets, and why getting SG right is crucial for long-term financial health.

How the Superannuation Guarantee Works in 2025

The Superannuation Guarantee is a legislated requirement for employers to contribute a set percentage of an eligible employee’s ordinary time earnings into a complying super fund. For many Australians, these contributions form the backbone of their retirement savings.

• Current SG rate (as of 1 July 2025): 11.5%. The SG rate continues to rise as part of the government’s staged plan, moving towards 12% by July 2026.
• Eligibility: Most employees aged 18 and over, earning more than $450 in a calendar month, are entitled to SG contributions. Since 2022, the $450 monthly threshold was abolished, meaning virtually all adult employees are covered.
• Payment frequency: Employers must pay SG at least quarterly, but many now process it with each pay cycle to stay compliant and avoid penalties.

For example, a full-time worker earning $80,000 a year will see their employer contribute $9,200 to their super fund in 2025, up from $8,800 in the previous year due to the rate rise.

2025 Policy Updates: What’s New for Employers and Employees?

The government’s 2025-26 Federal Budget has reaffirmed its commitment to strengthening the superannuation system. Key changes and reminders this year include:

• SG Rate Increase: The SG rate has risen to 11.5% as of 1 July 2025. Another increase to 12% is scheduled for July 2026.
• Stronger Compliance Focus: The ATO is intensifying audits and using data-matching technology to detect unpaid or underpaid SG. Penalties for non-compliance remain significant, with interest charges and administration fees.
• ‘Payday Super’ Coming Soon: Legislation is on track for employers to pay SG at the same time as salary and wages (rather than quarterly), with a start date set for 1 July 2026. Employers should prepare for this shift in payroll processes.
• Super for Contractors: Many gig economy workers, such as rideshare drivers, are now classified as employees for SG purposes in certain cases, following recent court decisions and ATO guidance.

For employees, it’s crucial to regularly check your super statements or log in to myGov to confirm contributions are being made on time and at the correct rate. If you notice missing payments, the ATO’s online tools make it easier to report issues.

Maximising Your SG: Tips for Workers and Employers

With SG rates on the rise and compliance tightening, both employers and employees have a vested interest in getting super right.

For Employees

• Review your payslip: Make sure the SG contributions reflect the correct rate (11.5% in 2025) and match your super fund records.
• Consolidate super accounts: Multiple accounts can erode your retirement savings through unnecessary fees. Use the ATO’s SuperMatch to find and merge old accounts.
• Consider salary sacrifice: Voluntary pre-tax contributions can boost your retirement nest egg and may offer tax advantages, up to the annual concessional cap ($30,000 in 2025).

For Employers

• Update payroll software: Ensure systems are set to the 11.5% SG rate and can handle more frequent payments ahead of the upcoming ‘payday super’ mandate.
• Audit your processes: Regularly check that all eligible staff, including casuals and contractors, receive their correct entitlements.
• Communicate with staff: Keep employees informed about SG changes and the importance of superannuation for their financial future.

Failing to meet SG obligations can result in substantial financial penalties and reputational damage, so proactive management is essential.

The Bottom Line: Secure Your Retirement, Stay SG Savvy

The Superannuation Guarantee is evolving in 2025, and staying on top of the latest rules is vital for every Australian worker and employer. With the rate increase to 11.5%, tighter compliance, and major changes like payday super on the horizon, it’s time to review your super strategy, ensure you’re getting your full entitlements, and make the most of Australia’s world-class retirement savings system.