Increase to super rate

The super guarantee (SG) rate has been 10% since 1 July, 2021. From 1 July 2022, the rate will increase to 10.5% and will increase by increments each year until it reaches 12% in 2025.

These increases have been legislated and are part of an aim to better support working Australians financially in retirement.

For an employee earning $60,000, super payments would rise by $300 a year under the 10.5% super guarantee.



“These increases will be an ongoing financial commitment for businesses, meaning adequate planning is essential to help guide businesses and their employees through these changes” Dan Chappel, Synergy Consolidated Director said.

Impacts on payroll

The new rate comes into effect from 1 July 2022, meaning impacts to payroll for business owners and managers.

“If you have a payroll cycle that crosses the period of rate change, it’s important businesses know that any payments are to be calculated based off the payment date – not the work completed date” Dan added.

For example, if an employee completed work in June 2022, but is paid in July 2022 than the new super guarantee rate of 10.5% is payable on that pay period.

To discuss your businesses superannuation requirements in more detail and what the general super guarantee could mean for you into the future, contact our team at Synergy Consolidated here.