The Superannuation Guarantee, or SG for short, is an employer’s regular payment to an employee’s super fund. It is currently set at 9.5% of ordinary earnings.

The minimum percentage that businesses must pay will gradually grow, with the next increase to 10% coming into effect on 1 July 2021. This will affect all payruns which are processed and paid post 1 July 2021.

The table below sets out the current and previous SG rates, as well as the Government’s presently legislated future adjustments to the rate:


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 and onwards 12%

According to the Federal Budget for 2021, the government wants to keep the anticipated rise in the super guarantee rate from 9.5 percent to 10% on July 1, 2021.


Super Guarantee Contributions Eligibility

As an employer, if your employee earns $450 or more (pre-tax) each month, you are required to pay you SG contributions. Following announcements made in the Federal Government’s 2021 Budget, the $450 threshold is expected to be eliminated from 1 July 2022.

Contractors who carry out work personally (rather than through a company or trust), may also need to be paid the SG if the service they provide is based on time, rather than an outcome. According to the ATO, contractors who are paid mainly for their labour may be considered employees for super guarantee purposes, provided that:

They are paid under a verbal or written contract that is predominantly for their labour (more than half the dollar value of the contract is for labour);

They are paid for their personal labour and skills such as physical labour, artistry or mental effort; and

They perform the work personally and don’t delegate it.

If you run a self-employed business as a sole trader or in a partnership, you generally are not required to make SG payments for yourself.

The Australian Taxation Office (ATO) provides an online tool that assists in determining if you are eligible for SG contributions –