Are you ready? A super rate rise is coming1 min read
On 1 July 2022, the Superannuation Guarantee (SG) rate will increase from the current rate of 10% to 10.5%.
SG is super from your employer—it’s the amount of super your employer must contribute on your behalf, whether you're a full-time, part-time or casual employee, including if you're a temporary resident. Different eligibility rules apply to some individuals, such as those under 18 years of age.
At the moment, the SG rate is 10% of your ordinary time earnings. This generally refers to what you earn for ordinary hours of work, commissions, allowances, bonuses and paid leave.
As part of the federal government’s stepped increase to the SG rate, the current rate is set to increase with further rises on the way. Here’s the schedule:
- 10.5% – 1 July 2022 to 30 June 2023
- 11% – 1 July 2023 to 30 June 2024
- 11.5% – 1 July 2024 to 30 June 2025
- 12% – From 1 July 2025
How will you feel the impact? The first thing to note is that it’s more super for you.
As super is a long-term investment, these increases and their accumulated value over the years could make a big difference by the time you’re ready to retire, potentially helping to achieve your retirement income goals.
It’s also worth noting that if your employment contract comes with a base salary plus super arrangement, then your take home pay will not be impacted.
However, if your contract comes with a total remuneration package which includes super, your take home pay could be impacted. Check with your HR team for more information.
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