The Superannuation Percentage relating to the level of contributions that an employer is required to pay an employee is gradually increasing from 9% to 12% between 1 July 2012 and 30 June 2026.

This compulsory contribution made by employers is known as the Superannuation Guarantee.

Why is the Superannuation Percentage increasing?

It is increasing because the Government has recognised that individualsĀ need to put greater savings aside in order to fund more (if not all) of their retirement.

The Baby Boomers, who are now hitting retirement, have highlighted the strain that will be put on the Government funding of the Age Pension.

By increasing the mandatory superannuation contributions, it is expected that more people will be able to fully or partially fund their own retirement.

Many people believe the increase in the Superannuation Percentage will have a significant impact on businesses, as their employees’ total salary package will cost more.

I’m not sure that this is the case. It is more likely that an employees’ ‘take home pay’ will be reduced in order to cater for the increased superannuation contributions.

What is the SuperannuationĀ Percentage amount?

The table below details the Superannuation Guarantee Percentage (%)

Period Superannuation Guarantee Rate (Percentage %)
1 July 2003 – 30 June 2013 9%
1 July 2013 – 30 June 2014 9.25%
1 July 2014 – 30 June 2015 9.5%
1 July 2015 – 30 June 2016 10%
1 July 2016 – 30 June 2017 10.5%
1 July 2017 – 30 June 2018 11%
1 July 2018 – 30 June 2019 11.5%
1 July 2019 – 30 June 2020 and onwards 12%

When do Superannuation Guarantee Payments need to be made?

These payments need to be made on at least a quarterly basis.

Quarter Period
1 1 July – 30 September
2 1 October – 31 December
3 1 January – 31 March
4 1 April – 30 June

More information, including the maximum SG Payment rates can be found in my SGC Superannuation article. Or, click here to learn about the SGC Cap.

If you would like anything clarified or have any further questions about Superannuation Percentage or any other topics, please do not hesitate to leave a comment.

Chris Strano

Chris Strano is a specialist independent superannuation author for SuperGuy.com.au - one of Australia's leading superannuation information resources.

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