Annual super guarantee increases
17 March 2021
The superannuation guarantee (SG) is scheduled to increase by half a percent each year until it reaches 12% in 2025, as outlined in the below table.
| Period | Super guarantee rate |
|---|---|
| 1 July 2021 – 30 June 2022 | 10% |
| 1 July 2022 – 30 June 2023 | 10.5% |
| 1 July 2023 – 30 June 2024 | 11% |
| 1 July 2024 – 30 June 2025 | 11.5% |
| 1 July 2025 – 30 June 2026 | 12% |
SG is the minimum super an employer must pay to their eligible employees. The SG is a percentage of the employee's ordinary time earnings – the amount an employee earns for their ordinary hours of work (including over-award payments, commissions, allowances and paid leave). Find out more about ordinary time earnings.
As an employer it’s important to ensure you pay super at this new minimum rate as there are financial penalties for not meeting your SG obligations.
The Super Guarantee Charge (SGC) is the penalty charged when employers don’t pay:
- the required super guarantee contributions for each eligible employee
- super contributions by the cut off date for payment or
- super to each employee’s chosen super fund.
This SGC penalty is not tax deductible and is made up of SG shortfall amounts, interest on those amounts (currently 10%) and an administration fee of $20 per employee, per quarter. More on the SGC is available from the ATO.
If you have questions about paying the correct super for your employees, you can call your BUSSQ Relationship Manager for help.
This article provides general information only and does not take into account your personal financial situation or needs. Before acting, you should consider the appropriateness of the information to your needs or obtain financial advice tailored for your personal circumstances. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).