The Superannuation Guarantee (SG) is the compulsory contribution your employer must pay into your super fund. Since its introduction in 1992, the SG rate has gradually increased from 3% to the current 12% — a journey that has shaped the retirement savings of every working Australian.
SG rate history
| Financial year | SG rate | Notes |
|---|---|---|
| 1992–93 | 3% | SG introduced by the Keating government |
| 1993–94 | 3% | |
| 1994–95 | 4% | |
| 1995–96 | 5% | |
| 1996–97 | 6% | |
| 1998–99 to 2001–02 | 7% | |
| 2002–03 to 2012–13 | 9% | Rate frozen at 9% for over a decade |
| 2013–14 | 9.25% | Increase resumed |
| 2014–15 to 2020–21 | 9.5% | Increase delayed by successive governments |
| 2021–22 | 10% | Scheduled increases resumed |
| 2022–23 | 10.5% | |
| 2023–24 | 11% | |
| 2024–25 | 11.5% | |
| 2025–26 | 12% | Final scheduled increase reached |
How the SG rate affects your retirement
The SG rate has an enormous impact on retirement outcomes. At 9% (the rate for most of the 2000s), a worker on $80,000 receives $7,200/year in SG. At 12%, that same worker receives $9,600/year — an extra $2,400/year that compounds over decades.
Who pays the SG?
Your employer is legally required to pay SG on your ordinary time earnings (OTE). This includes salary, commissions, shift loading, and some allowances. It generally excludes overtime pay. From 2024, there is no longer a $450/month minimum earnings threshold — all employees are entitled to SG regardless of how little they earn.
Will the SG rate increase beyond 12%?
The 12% rate reached in 2025–26 was the final legislated increase. There is ongoing debate about whether it should eventually rise to 15%, but no legislation currently mandates further increases. Any change would require an act of Parliament.
Checking your employer is paying correctly
Employers must pay SG at least quarterly. You can check your SG payments by:
- Logging into your super fund and checking contribution history
- Checking your MyGov ATO account under Super → Information
- Comparing your payslip SG amount against 12% of your OTE
If your employer isn't paying the correct amount, report it to the ATO via the SG unpaid super form. The ATO can recover unpaid super plus interest and penalties.