Superannuation Guarantee rate will rise to 10% starting 1 July

Starting 1 July 2021, the super guarantee rate will rise from 9.5% to 10%.

The new superannuation guarantee contribution rate will apply for salary and wage payments made on or after the said date.

Contributions for the quarter ending 30 June 2021 will be calculated at the old rate of 9.5%.

The super guarantee rate is scheduled to progressively increase to 12% by July 2025. Here are the past and present rates and schedule of increase:

Financial Year Super Guarantee Rate
1 July 2002 – 30 June 2013 9%
1 July 2013 – 30 June 2014 9.25%
1 July 2014 – 30 June 2021 9.5%
1 July 2021 – 30 June 2022 10%
1 July 2022 – 30 June 2023 10.5
1 July 2023 – 30 June 2024 11%
1 July 2024 – 30 June 2025 11.5%
1 July 2025 – 30 June 2026 onwards 12%

 

If you employ staff in your small business, ensure your payroll and accounting systems are updated to incorporate the changes to the SG rate.

To check your employee’s eligibility, you may use ATO’s online tool.


This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act.