For Australian businesses, staying on top of Superannuation obligations is crucial. A significant change is on the horizon that requires your immediate attention: the Super Guarantee (SG) rate is set for its final scheduled increase, reaching 12% from 1 July 2025.
This adjustment means businesses need to ensure their payroll and accounting systems are updated to reflect the new rate. This guide from LDB Group breaks down what you need to know about this Super Guarantee increase and how it impacts your employer Super obligations.
The Super guarantee percentage: The final step to 12%
The Super Guarantee is the minimum amount of Superannuation employers must pay for their eligible employees to the correct fund by the due date. The SG is calculated as a percentage of each eligible employee’s ordinary time earnings (OTE).
The rate has progressively increased over recent years, and from 1 July 2025, the Superannuation guarantee rate will increase from 11.5% to 12%. This is the final scheduled increase in the Super Guarantee rate, completing the planned transition to 12%.
Key date: When the 12% rate applies
It’s vital for all businesses to understand that the 12% rate will need to be applied for all salary and wages paid to eligible workers on and after 1 July 2025. This applies even if some or all of the pay period it relates to is before 1 July. Your payroll Superannuation calculations must accurately reflect the date payments are made.
Understanding your Superannuation compliance obligations
Employers must pay the minimum SG amount for their eligible employees to a complying Super fund or retirement savings account (RSA). Failure to pay the minimum amount by the due date can result in the Super Guarantee Charge (SGC), which includes the unpaid Super, interest, and an administration fee.
Maximum Super contribution base
Employers are not required to provide the minimum Super Guarantee for the part of an employee’s earnings above the maximum Super contribution base. For the 2025-26 income year, the maximum Super contribution base is $62,500 per quarter. The maximum SG payment amount per quarter for 2025-26 is $7,500.00. This base is indexed annually.
Contribution due dates
Your Super Guarantee contributions for each employee are required to be paid on at least a quarterly basis. The due dates for contributions are:
- Quarter 1 (1 July – 30 September): Due by 28 October
- Quarter 2 (1 October – 31 December): Due by 28 January
- Quarter 3 (1 January – 31 March): Due by 28 April
- Quarter 4 (1 April – 30 June): Due by 28 July
Prepare your business & payroll systems
To ensure a smooth transition to the new 12% SG rate, businesses should:
- Update payroll systems: Adjust your payroll software and processes to automatically apply the 12% rate for all payments made on or after 1 July 2025.
- Communicate with employees: Inform your employees about the upcoming change to their Superannuation contributions.
- Review contracts: Ensure employment contracts and workplace agreements align with the new SG rate.
- Budget accordingly: Factor the increased Superannuation costs into your financial planning and cash flow forecasts.
How LDB Group can help your business Superannuation planning
Navigating Superannuation Guarantee changes and ensuring Superannuation compliance can be complex. At LDB Group, our Superannuation advisory services are designed to support businesses and ensure you meet your obligations effectively.
Whether you need assistance with payroll system updates, understanding your Superannuation Guarantee obligations, or comprehensive business Superannuation planning, our team of expert accountants and advisors can provide tailored advice.
Don’t leave your Superannuation compliance to chance. Contact LDB Group today to discuss how we can assist your business in making a seamless transition to the new 12% Super Guarantee rate.
