Breaking news: Super just got a boost!
29 June 2022
If your employer is making superannuation guarantee (SG) contributions for you, from 1 July 2022 your super received a boost. And it’s happened automatically – you don’t need to do anything to reap the rewards.
From 1 July 2022 the SG rate, or the percentage of your income your employer is required to contribute to super on your behalf, increased from 10% to 10.5%. The percentage is set by the Australian Government and is scheduled to rise half a percent each financial year until it reaches 12% in 2025.
The increase might not sound like a lot, but if you’re working SG contributions are likely to be the most common type of contribution regularly going into your super account, and even small increases can add up over time.
It’s not the only good news for working Australians. From 1 July 2022 the Government has also removed the SG threshold. Previously if you earned less than $450 in a calendar month your employer was not required to make SG contributions for you. This changed on 1 July, and now your employer must make SG contributions to your fund, regardless of how much you are paid.
It’s estimated that around 300,000 Australians will benefit, particularly women, younger people, and those in the GIG economy with several part time jobs.
Our Retirement Simulator has SG increases built in – you can use it to see how much you might have at retirement.
Visit the ATO’s Estimate my super tool to work out whether you are eligible for SG contributions, and whether your employer is paying the correct amount.