Super Guarantee 12% SG

Super Guarantee Rate 12%

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From 1 July 2025, the superannuation guarantee (SG) rate officially rose to 12% of ordinary time earnings (OTE). This is the final step in the gradual increase legislated under previous reforms.

Up until the end of the financial year the Super Guarantee was at 11.5% (up to 30 June 2025) from July 1st the super contribution that employers are required to make to employee super is 12% (from 1 July 2025).

This increase affects cash flow, payroll accruals and employment contracts, especially where total remuneration includes superannuation.

Employer checklist

  • Update payroll software: ensure systems are calculating 12% SG correctly from 1 July 2025 pay runs
  • Review employment agreements: if contracts are set to inclusive of super, the take-home pay of employees may reduce unless renegotiated or the employer decides to bear the cost of the increased SG rate
  • Budget for higher super contributions: consider possible cash flow impacts. Remember that significant penalties can be imposed for late or incorrect SG payments, including loss of deductions, interest and other administration charges.

If you have any queries or questions in regards to your Super or Employee Super Contributions don’t hesitate to get in contact with us at STS Accounting.