Increase in Superannuation Guarantee Contribution

Under the current superannuation guarantee, employers must pay superannuation contributions of 10% of an employee's ordinary time earnings when they earn over $450 per month before tax.

Effective 1 July 2022, the superannuation contribution will be increased to 10.5% of an employee’s ordinary time earnings. Further to this, the Superannuation Guarantee Contribution is legislated to increase by 0.5% on 1 July every year until it reaches 12% on 1 July 2025.