Are you ready? A super rate rise is coming

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.   

Issued by Total Risk Management Pty Ltd ABN 62 008 644 353, AFSL 238790 (TRM) as the trustee of the Russell Investments Master Trust ABN 89 384 753 567. Resource Super and Nationwide Super are divisions of the Russell Investments Master Trust. This article provides general information only and has not been prepared having regard to your specific objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information has been compiled from sources considered to be reliable, but is not guaranteed. Any examples have been included for illustrative purposes only and should not be relied upon for the purpose of making an investment decision. Past performance is not a reliable indicator of future performance. The Product Disclosure Statement (PDS) can be obtained by phoning 1800 555 667 or by visiting russellinvestments.com.au or for Nationwide Super by phoning 1800 025 241 or visiting nationwidesuper.com.au. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any Russell Investments product. The Target Market Determinations for the Russell Investments Master Trust are available on our website. The Financial Services Guide for the Russell Investments Master Trust is available on our website or on the Nationwide Super website.  

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