New Superannuation Guarantee Rate

In the Federal budget, the government elected to keep the legislated increase to the SG rate to 10% from 1 July 2021 (up from 9.5%).

The rate is already legislated to increase gradually to 12% over the coming years as follows:

• 1 July 2014 – 30 June 2021 Rate 9.5%
• 1 July 2021 – 30 June 2022 Rate 10%
• 1 July 2022 – 30 June 2023 Rate 10.5%
• 1 July 2023 – 30 June 2024 Rate 11%
• 1 July 2024 – 30 June 2025 Rate 11.5%
• 1 July 2025 – 30 June 2026 Rate 12%

The rate is payable on a worker’s “ordinary time earnings”, therefore salary paid in respect of overtime will not attract SG. For a full list of what does and what does not constitue “ordinary time earnings” see Superannuation Guarantee Ruling SGR 2009/2 https://www.ato.gov.au/law/view/print?DocID=SGR/SGR20092/NAT/ATO/00001