Is Your Business Ready for the Superannuation Jump to 12%?
Here’s What You Need to Know …
Australia’s Superannuation Guarantee (SG) is set to increase from 11.5% to 12% on 1 July 2025 - the final step in a legislated increase that began in 2021, where Superannuation obligations rose from 9.5%.
What this means for businesses
This extra 0.5% may seem minor, but its impact is significant. For an employee earning $100,000, that’s an extra $500 per year in superannuation contributions—applied to every eligible staff member.
For businesses with 10 - 50 employees, the total annual increase can quickly mount into thousands, affecting cash flow and budget planning.
Importantly, the ATO emphasises compliance: employers must apply the new 12% rate to all pay on or after 1 July, even if part of the pay period covers June.
Incorrect payments can lead to penalties to your business.
Why this matters for your team
More super means better long-term retirement savings for employees. Studies show a 30‑year‑old on a $100,000 salary could be $125,000 better off at retirement, while a median‑earner on $75,000 could gain around $20,000 over their working life.
Couples stacking up this benefit further improves retirement readiness - creating a win‑win with lower staff turnover and better workforce morale.
However, awareness remains low: only about 20% of Australians know the current SG rate, meaning employers who proactively manage and communicate this change can differentiate themselves. The messaging here being … tell them!
What employers should do right now
Audit payroll systems: Ensure software is updated to apply 12% on first pay dates in July.
Inform staff: Be transparent about what the change means for them, including how it grows their retirement savings.
Plan cashflow: Build the extra cost into budgets. Even a small change in percentage adds up when you're paying dozens of staff.
Ensure compliance: Remind your payroll team that SG visas “pay date” rules apply, and late or underpayments risk penalties.
Partnering for smarter growth
As this SG step takes effect, savvy businesses use it as a catalyst - updating systems, engaging staff, and reviewing recruitment strategies to support sustainable growth.
👉 With labour costs rising, the right hire matters more than ever. Find out how we can help.
