What is the prescribed superannuation guarantee rate payable?
The 2014 Federal Budget introduced superannuation guarantee rate changes. The Government has amended the program for increasing the superannuation guarantee rate (the SG Rate) to 12%.
The government introduced the superannuation guarantee system in 1992. For more detail on that system, refer our article ‘Superannuation guarantee matters‘. The ‘rate’ applies to the ordinary times earnings of ’employees’.
The original intention of the government was that the SG rate would rise to 9.5% from 1 July 2014 and remain at this level until 30 June 2018. Beyond that date, the government announced that the SG rate would then increase by 0.5% each year from 1 July 2018 until it reaches 12% in the 2022/23 financial year.
The government revised the guarantee rate in late 2015. The Table below reflects the SG rates to apply in the relevant years:
| Financial Year | Revised Rate | Original Rate |
| 2014/15 | 9.50% | 9.50% |
| 2015/16 | 9.50% | 9.50% |
| 2016/17 | 9.50% | 9.50% |
| 2017/18 | 9.50% | 9.50% |
| 2018/19 | 9.50% | 10.00% |
| 2019/20 | 9.50% | 10.50% |
| 2020/21 | 9.50% | 11.00% |
| 2021/22 | 10.00% | 11.50% |
| 2022/23 | 10.50% | 12.00% |
| 2023/24 | 11.00% | 12.00% |
| 2024/25 | 11.50% | 12.00% |
| 2025/26 | 12.00% | 12.00% |
Why is the superannuation guarantee rate so important?
The intention of the Australian Superannuation system is to provide a reliable source of income to fund a reasonable level of financial independence in retirement. This system has two advantages: it improves the well-being of the retired population to be less dependant on government welfare in retirement; and that means that future scarce tax resources will be able to service other public health and welfare needs more adequately.
It was always recognised that the previous long-term rate of 9.00% –
- that had applied for a number of years,
- slowly increasing from the original 3%,
would not be adequate. There is a high expectation that the 12% rate will be more effective in satisfying the above goals.
As demonstrated in our article ‘Dollar Cost Averaging’, –
- an early start on a savings/ investment accumulation plan,
- the more likely the goal will be met.
Regular monitoring of how these funds are investedwill enhance the outcome. Make sure you’re comfortable with the investment risk in your super account.
Are you managing your superannuation wisely?
There are a number of aspects to the wise management of your superannuation investment: these include –
- ensuring contact details are notified up-to-date with the trustee(s) of your account(s);
- wherever practical, amalgamate all of your accounts into one (carefully selected) provider account;
- check that your employer regularly conbtributes the superannuation guarantee amounts mandated;
- review any insurance products within the account(s) are adequate and suited to your circumstances;
- ensure that you advise the trustee as to your death benefit nomination(s); and
- check that your superannuation is invested in an asset allocation within your ‘comfort zone’ by
- regular review of your investor risk profile.
The experienced advisers and support team at Continuum Financial Planners Pty Ltd are ready and able to assist you with these processes. They can advise you regardless of which superannuation structure you hold your retirement savings. To make an appointment with one of our experienced team members –
- phone our office on 07-3421 3456; or
- at your convenience, use the linked Book A Meeting facility.
(This article was originally posted by us in May 2014. We occasionally refresh / update it, most recently in July 2025.)
