Super guarantee rate now 12%: what it means for employers

From 1 July 2025, the superannuation guarantee (SG) rate officially rose to 12% of ordinary time earnings (OTE). This is the final step in the gradual increase legislated under previous reforms.

Old rate: 11.5% (up to 30 June 2025). New rate: 12% (from 1 July 2025).

This increase affects cash flow, payroll accruals and employment contracts, especially where total remuneration includes superannuation.

Employer checklist

Update payroll software: ensure systems are calculating 12% SG correctly from 1 July 2025 pay runs
Review employment agreements: if contracts are set to inclusive of super, the take-home pay of employees may reduce unless renegotiated
Budget for higher super contributions: consider possible cash flow impacts

Personal superannuation contributions

The annual concessional contribution cap will remain at $30,000 for the 2025/2026 financial year. The annual non-concessional contribution (NCC) cap is set at $120,000.

NCCs can now be made by individuals with a total super balance (TSB) of less than $2,000,000 on 30 June 2025 (due to the transfer balance cap increasing to $2,000,000).