Superannuation SG at 12%: what employees need to know

What is superannuation?

Superannuation (super) is Australia’s compulsory retirement savings system. Every eligible employee receives a mandatory employer contribution into their own super fund on top of their salary. These funds are preserved until retirement (generally from age 60–67).

The Superannuation Guarantee rate from 1 July 2025

From 1 July 2025, the Superannuation Guarantee (SG) rate is 12%. This is the final step in a legislated schedule:

• 2023–24: 11%
• 2024–25: 11.5%
• 2025–26 onwards: 12%

The SG is calculated on your ordinary time earnings (OTE) — your regular pay before tax. On a $80,000 salary, your employer must contribute an additional $9,600 per year to your super.

Who is entitled to SG?

Most employees working in Australia are entitled to SG, including full-time, part-time, and casual workers:

• Age 18 or over: entitled regardless of hours worked.
• Under 18: must work more than 30 hours per week.
• There is no minimum income threshold — the previous $450/month floor was removed from 1 July 2022.

Visa holders on most work-authorised visas (482, 485, 494, PR) are also entitled. Temporary residents can withdraw their super when leaving Australia (DASP — Departing Australia Superannuation Payment), subject to a withholding tax.

How to check your super balance

1. Log in to myGov → link to ATO.
2. Go to “Super” — view all your super accounts, balances, and recent employer contributions.
3. Your Notice of Assessment after tax time also shows super information.

Employers must pay SG at least quarterly (due in January, April, July, October). If contributions are missing, you can report this to the ATO at 13 10 20.

Choosing a super fund

You have the right to choose your own super fund. If you don’t nominate one, your employer will contribute to your Stapled Fund (a fund linked to you from previous employment) or their default fund.

Super fees and investment returns vary significantly between funds — the difference compounds substantially over a career. Key steps:

• Consolidate multiple accounts: many people have several super accounts from different jobs, each charging annual fees. Merge them in myGov → ATO to stop paying unnecessary fees on small balances.
• Provide your TFN to your fund: without a TFN, your fund withholds tax at a higher rate on contributions.
• Choose an investment option suited to your age: younger workers often benefit from higher-growth options over the long term.

Super on parental leave

From 1 July 2025, the government pays super at the current SG rate on government-funded Parental Leave Pay (PPL). This fills a gap that previously left parents — particularly women — with lower super balances at retirement.