Superannuation Guarantee (SG)
The Superannuation Guarantee (Administration) Act 1992 (SGAA) was introduced by the Government on 1 July 1992 to ensure that most employees receive superannuation support from their employer.
The legislation provides that employers must provide at least a set minimum amount of superannuation support for their employees. If an employer fails to pay the minimum amount of superannuation, they may have to pay a Superannuation Guarantee Charge to the Australian Tax Office.
Your employer may choose to pay more than this minimum, or you could request a higher amount during salary negotiations.
The SG minimum is a percentage of your eligible salary. The minimum is 9.5%; it was set at 9% in 2002-03 but since 1 July 2013 it is gradually increasing as follows:
|Financial year||SG rate|
Note that SG contributions count towards your concessional contributions limit.