Super Guarantee Rate Now 12% – Employer Overview

On 1 July 2025, the Super Guarantee (SG) rate increased to 12% from 11.5%, completing a phased rise from 9.5% implemented over recent years. This means higher super contributions for almost 10 million employees, an incremental but impactful boost to retirement balances, estimated to add over $22,000 for a 30-year-old over their working life 

Employer responsibilities:

• Update payroll systems and employment contracts, especially where salary is “inclusive of super”, to reflect the new rate 
• Plan for increased contributions to avoid cash flow stress.
• Remember, incorrect SG payments attract the Super Guarantee Charge (not tax-deductible), along with interest and administrative penalties

Audit your payroll setup and employment contracts now to ensure the 12% SG rate is correctly applied. If you’re unsure about inclusive salary clauses or system updates, contact your Simmons Livingstone advisor for a compliance check-up. Call us on 1800 618 800 or via email at admin@simmonslivingstone.com.au.