Superannuation Guarantee Increases 2013 to 2019
- Arnold Shields
- Nov 10, 2011
- 2 min read
Updated: Jun 11
Gradual Increase from 9% to 12%
In line with the Federal Government’s long-term retirement planning strategy, the Superannuation Guarantee (Administration) Amendment Bill 2011 introduced a gradual increase to compulsory superannuation contributions.
From 1 July 2013, employers were required to begin increasing the Superannuation Guarantee (SG) rate for eligible employees from 9% to 12%.
Year-by-Year SG Rate Increases
Financial Year Starting | SG Charge % |
1 July 2013 | 9.25% |
1 July 2014 | 9.5% |
1 July 2015 | 10% |
1 July 2016 | 10.5% |
1 July 2017 | 11% |
1 July 2018 | 11.5% |
1 July 2019 onwards | 12% |
Note: While this was the proposed schedule, subsequent governments have delayed or amended this timeline. Always refer to the ATO website or contact your accountant for the current SG rate.
Super Contributions for Older Employees
A significant change introduced by the Bill was the removal of the age limit for SG contributions. Previously, employers were not required to contribute super for employees over age 70. The amendment extended this to age 75, acknowledging the growing number of Australians working later in life.
Implications for Employers
While the increases were small and phased in over several years, they represented a real cost increase for businesses, especially small to medium-sized enterprises (SMEs). Employers were encouraged to:
Factor superannuation increases into wage and budget forecasts.
Review employment contracts and negotiate salary packages with super in mind.
Ensure payroll systems were updated for compliance.
Benefits for Employees
For employees, particularly younger workers, the increase in super contributions was a positive long-term benefit. Over a working lifetime, an increase from 9% to 12% could mean thousands of dollars more in retirement savings.
This move was widely welcomed by the superannuation industry and financial planners, as it aimed to reduce long-term reliance on the age pension.
Need Help with Super Obligations?
Understanding and keeping up with superannuation obligations can be challenging—especially with changing legislation. At Dolman Bateman, we help employers:
Stay compliant with SG laws
Structure employment contracts correctly
Integrate super into cash flow and payroll systems
Call us today on (02) 9411 5422 or contact us for expert advice on managing superannuation compliance.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
