What Is Superannuation?
Superannuation (super) is Australia's compulsory retirement savings system. As an employer, you're legally required to pay a percentage of each eligible employee's earnings into a super fund. These contributions build up over the employee's working life and become accessible when they retire.
It's not optional, it's not a perk, and getting it wrong carries serious penalties.
The Current Super Guarantee Rate
As of 1 July 2025, the Super Guarantee (SG) rate is 12% of an employee's ordinary time earnings (OTE). This rate applies to all eligible employees regardless of how much they earn.
The SG rate has been gradually increasing over the past several years:
| Financial Year | SG Rate |
|---|---|
| 2023-24 | 11.0% |
| 2024-25 | 11.5% |
| 2025-26 | 12.0% |
The rate is now at its legislated ceiling of 12%.