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
2013‑14 9.25%
2014‑15 9.5%
2015‑16 9.5%
2016-17 9.5%
2017‑18 9.5%
2018-19 9.5%
2019‑20 9.5%
2020-21 9.5%
2021‑22 10.0%
2022‑23 10.5%
2023-24 11%
2024-25 11.5%
2025-26 12%

 

Note that SG contributions count towards your concessional contributions limit.

 

Since 1 July 2016, Norfolk Island is also subject to a SG. Currently at 4%, the minimum rate increases by 1% annually – see our frequently asked questions for more details.

 

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