What is the super guarantee?
The super guarantee (SG) is the amount of money your employer has to pay into your super account.
How do I know if I should be receiving the super guarantee?
Generally, you’ll receive the super guarantee if you are:
- 18 years of age and over and earn more than $450 a month before tax; or
- Under 18 years of age, earn more than $450 a month before tax and work more than 30 hours per week.
So, what has changed?
The rate of SG contributions will increase from 9.5% to 10% of wages as of 1 July 2021. So, keep an eye out on your pay slip and check to see the increase to your super contributions. There’s no need for you to do anything, this will be managed solely by your employer.
Even though this increase might seem small now, it can really add up over time depending on when you decide to retire.
Is that the only change to the super guarantee?
This isn’t the last increase you’ll see. Over the next few years, the rate will continue to rise, all the way up to 12% in 2025.