The super guarantee (SG) — the minimum percentage of your ordinary earnings your employer must pay into super — hasn't always been 12%. It's risen gradually since compulsory super began in the early 1990s, with the most recent run of increases legislated over the 2020s.
The Timeline
| Financial year | SG rate |
|---|---|
| 1992–2002 | Phased in from 3% to 9% |
| 2002–2013 | 9% |
| 2013–2014 | 9.25% |
| 2014–2021 | 9.5% |
| 2021–2022 | 10% |
| 2022–2023 | 10.5% |
| 2023–2024 | 11% |
| 2024–2025 | 11.5% |
| 2025–2026 | 12% |
| 2026–27 | 12% (current, legislated final rate) |
Why It Kept Rising
The series of increases from 9.5% to 12% was legislated in 2021 as a fixed schedule, stepping up by 0.5 percentage points each financial year. The goal was to gradually build larger retirement balances without a single large jump that employers or the economy would need to absorb all at once.
What It Means for You Now
At 12%, a $100,000 salary now generates $12,000 a year in employer super contributions, compared to $9,500 back when the rate was 9.5%. If your pay was set as a package including super, each increase has meant slightly less take-home salary for the same total package value; if super is paid on top of your salary, the increases added to your retirement balance without touching your pay.
See exactly how much super you're accruing at the current rate, and project your balance forward, with our Super Calculator Australia. Check whether your own pay is structured as salary-plus-super or a total package with our Take Home Pay Calculator Australia.
Sources: ATO — super for employers.