Super Guarantee Rate Rises to 12% from 1 July 2025

From 1 July 2025, the superannuation guarantee (SG) rate will increase to 12%, meaning more employer contributions to your super fund. This change will boost your retirement savings over time but timing matters when it comes to how much super you receive.

When does the 12% Super Rate Apply?

It’s not about when you worked, but when you were paid.

• If your payday is on or after 1 July 2025, then your employer must contribute 12% to your super – even if you earned that pay in June.
• If your payday falls before 1 July 2025, then the current rate of 11.5% applies, even for work done in July.

Example:

Let’s say George works in late June and gets paid on 2 July 2025. Since the payment was made in July, the 12% SG rate applies.
If George works in early July but is paid on 30 June 2025, the 11.5% rate still applies because of the earlier pay date.

Super Deadlines for Employers

Employers must pay the correct SG amount by the standard deadlines – usually 28 days after each quarter ends.

SG Rate Timeline at a Glance:

This 12% rate marks the final stage in Australia’s gradual superannuation increase plan.

What Income Attracts Super?

Super is generally paid on your Ordinary Time Earnings (OTE) – including your base pay, commissions, shift loadings, and allowances.
Overtime, reimbursements, and certain one-off payments may be excluded from super.

Need Support?

If you're unsure whether you're receiving the correct super amount, it's worth checking. Every dollar counts towards your retirement.
For employers, understanding which payments require super and when to apply the new rate helps avoid errors and penalties.

Need help? Contact us to ensure your super obligations are up to date and correct.

Tommy Li, CA

Director, Verity Advisory  |  Registered Tax Agent  |  Authorised Financial Adviser (ASIC Rep No. 1261831)  |  Member, Chartered Accountants Australia & New Zealand

Tommy is a Chartered Accountant with 20+ years advising medical professionals on tax, financial structure and practice decisions. He founded Verity Advisory to provide integrated advice for doctors at career-defining financial inflection points — combining tax, lending and financial planning into a single structured approach.