Increase to superannuation contributions from 1 July 2025

The Superannuation Guarantee legislation, comprising the Superannuation Guarantee (Administration) Act 1992 and the Superannuation Guarantee Charge Act 1992 requires employers to make minimum superannuation contributions on behalf of their full-time, part-time and casual employees, with some exceptions.

Which employees receive contributions?
All employees, except for certain limited categories of employees, receive superannuation. These exceptions include:

• employees under 18 years of age working for not more than 30 hours per week

• some foreign executives who hold certain visas or entry permits

• resident employees paid by non-resident employers for work done outside Australia

• employees paid to do work of a domestic or private nature for not more than 30 hours a week - e.g. a part-time nanny or housekeeper.

Apart from the specified exclusions, the rules, obligations and entitlements under the Superannuation Guarantee legislation apply to all employees.

What contribution rate applies?
Superannuation contribution rates have been increasing by 0.5% each financial year since 1 July 2021. The increase to 12% is the final stage in the planned increases to the contribution rate.

Subject to the exemptions outlined above, employers must make minimum contributions based on an employee’s ordinary time earnings.

The table below sets out the rates for previous years and the rate for 1 July 2025 onwards:

When and how are superannuation increases paid?
The 12% superannuation rate must be applied for all salary and wages paid to an eligible worker on and after 1 July. This is the case even if some or all of the pay period it relates to is before 1 July.

If an employee is paid wages before 1 July 2025, then superannuation on those wages will remain at 11.5%.

If an employee is paid wages after 1 July 2025, then superannuation on those wages (i.e. including wages for work done in the pay period before 1 July 2025) will be 12%.

Example:
Henry is paid fortnightly and his employer’s final pay run for the 2024-2025 financial year will end on 4 July 2025.

As Henry’s wages for the relevant fortnight will be paid after 1 July 2025, the superannuation contribution will be 12% on the wages for the whole pay period.

Where can I find more information?
More information on superannuation is available on the ATO's website.

Employers and employees can also contact their accountant or the ATO for further advice and information.