Super Guarantee Rate Rises to 12%—Here’s What You Need to Do Now

From 1 July 2025, the Superannuation Guarantee (SG) rate will officially increase from 11.5% to 12%.

This change is part of the government's ongoing plan to help Australians retire with more savings.

However, it also means a slight increase in your business expenses.

What does this mean for you as a business owner?

1. Review Your Payroll Systems Now
Ensure your payroll software (like Xero or MYOB) is updated to reflect the new 12% SG rate. While most systems update automatically, it's always best to double-check your settings and run a test payroll before 1 July.

2. Adjust Your Budget and Forecasting
Even a 0.5% increase can impact your cash flow, especially if you have multiple employees. Now is the time to factor this into your financial planning for the new financial year.

3. Communicate with Your Team
If your employees are on total remuneration packages, their take-home pay might decrease slightly due to the increased super contribution. Be proactive in communicating this change to avoid any surprises.

Need more information?
For detailed guidance, visit the ATO's official page on the Super Guarantee: ATO Super Guarantee