Superannuation Guarantee Increase from 1 July 2025

| July 13, 2025

From 1 July 2025, a key legislative change affecting all employers will come into effect: the Superannuation Guarantee rate will increase from 11.5% to 12%.

This means that for any salary and wage payments made on or after 1 July 2025, employers must contribute 12% of an eligible employee’s ordinary time earnings to their nominated superannuation fund.

Understanding the Change

Employers are likely aware that the superannuation guarantee rate has been steadily increasing over the past decade. From a rate of 9% as of 30 June 2013, incremental rises were legislated as part of Australia’s long-term retirement income strategy, aiming to secure better financial outcomes for workers.

The 2025 change to 12% marks the final stage of these planned increases under current legislation.

What Happens After 1 July 2025?

As it stands, there are no current plans to further increase the superannuation guarantee percentage beyond 12%. This will become the new standard rate for employer contributions moving forward unless future legislative changes are announced.

What Employers Need to Do Now

To remain compliant from 1 July 2025, employers should take proactive steps:

• Review payroll systems and software to ensure the Superannuation Guarantee rate is automatically updated to 12%.

• Communicate the change to payroll teams, finance departments, and employees where relevant.

• Audit employment contracts to confirm superannuation clauses reflect the updated rate.

• If you operate under an enterprise agreement, verify that it allows for updates to superannuation contributions in line with legislative requirements.

• Consult your legal or HR advisor if there is any uncertainty around how this change affects your current obligations or employee entitlements.

Final Thoughts

The increase marks the final step in the legislated rise of Australia’s superannuation guarantee. Employers must ensure they are applying the updated rate correctly to all relevant payments from 1 July 2025 onwards.

At IRiQ Law, we help employers navigate employment law obligations with confidence. If you need support understanding what this change means for your payroll, employee contracts, or enterprise agreements, contact our team today.