Super guarantee rate changes (2023): What you need to know

Did you know your super guarantee has increased? Learn about the changes here.

As of 1 July 2023, the super guarantee (SG) will incrementally rise by 0.5% on 1 July each year until it reaches 12% in 2025.

The increase from 10.5% to 11% in the SG rate may seem minor. But it can positively impact the amount of super you save and the funds available for your retirement. 

Every single cent counts, and we’ll show you how to make the most of the new SG rate. Let’s get to it.

 

What is the super guarantee (SG) percentage increase?

A recap of changes to the super guarantee in 2023-24

The new super guarantee rate for the financial year commencing 1 July 2023 is 11%.

What does that look like? Well, if in FY23 you earned a gross annual salary and wages of $100,000 per year, last year you would have received $10,500 of employer contributions (known as SG) into your super account. 

In FY24, on the same annual salary and wages, you’ll receive $500 more to invest in your future.

In this example, that means the 0.5% increase in the super guarantee rate translates to an approximate 4.8% increase in your annual super contributions from FY23.

 

Future super guarantee changes*

Period	Super guarantee rate
1 July 2023 – 30 June 2024	11.00%
1 July 2024 – 30 June 2025	11.50%
1 July 2025 – 30 June 2026	12.00%
1 July 2026 – 30 June 2027	12.00%
1 July 2027 – 30 June 2028 and onwards	12.00%

*future rates may be subject to change

 

What is the super guarantee?

The super guarantee (SG) is a federally-legislated entitlement for most Australian workers.

It’s a percentage of your ordinary time earnings that your employer adds to your super fund on top of your wages. Think of it as like a boost to your retirement savings.

With 11% of your wages or salary now being contributed to your super, choosing a super fund that aligns with your long-term financial goals and offers strong investment performance is important.

 

Do employers have to pay the super increase?

Yes. If you’re eligible for super, your employer must contribute to your super fund at the new superannuation guarantee (SG) rate. This increase aims to enhance the retirement prospects for all Australians.

These contributions should occur at least four times yearly, as determined by the ATO. Employers also have the option to choose weekly, fortnightly or monthly payment schedules.

Make sure your employer is making their deposits on time. Otherwise, you could be missing out on compounding interest on your super.

 

Steps to safeguard your super

Check your pay slips and confirm that you’re receiving the correct super guarantee (SG) rate of 11%. Remember that although super contributions may appear on your payslip, it doesn’t necessarily mean they have been deposited into your super account.

If your employer has failed to meet their SG obligations, not paid your super on time or paid it into the wrong fund, here’s what you can do:

• Speak to your workplace’s payroll contact.
• If you’re unsatisfied, lodge an unpaid super enquiry with the ATO.
  • Provide personal details, tax file number, period of enquiry, and employer’s information.
  • Call the ATO at 13 10 20 for assistance.

 

Can I contribute more to my super than the compulsory 11%?

Yes, absolutely! You have the option to contribute more to your super than the compulsory 11%. 

Making additional contributions can help grow your retirement savings faster. You can consider making extra payments yourself, known as personal concessional contributions, which can be tax-effective and reduce your taxable income. There are a few different ways to top up your super, like salary sacrifice contributions and after-tax non-concessional contributions. 

Keep in mind that there are limits to how much you can contribute. Consider your financial goals and consult with a financial adviser before topping up your super.

 

Want to invest your new super increase, on your terms?

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