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The super guarantee has increased: Here’s what you need to know

Georgia Brown avatar
Georgia Brown
- 4 min read
The super guarantee has increased: Here’s what you need to know

Along with the new financial year comes a welcomed increase to the super guarantee as Australian workers celebrate 30 years of compulsory superannuation.

Today, the super guarantee – which is the minimum percentage of your earnings your employer is obligated to pay into your super fund – will increase from 10 per cent to 10.5 per cent.

Last year, the super guarantee was legislated to increase to 12 per cent by 2025, with the first of a string of annual 0.5 per cent hikes occurring last July.

Legislated increases to super guarantee percentage

Period Super guarantee percentage
1 July 2014 – 30 June 20219.5
1 July 2021 – 30 June 202210.0
1 July 2022 – 30 June 202310.5
1 July 2023 – 30 June 202411.0
1 July 2024 – 30 June 202511.5
1 July 2025 and beyond12.0

Source: Australian Taxation Office

According to Industry Super Australia (ISA), this year’s increase will see an extra $312 a year flow into the super accounts of the average Australian worker, with a 30-year-old on the median wage expected to have an extra $22,000 at retirement.

“Even though the staged increases are small, they’ll add up to so much more in savings and that means a more secure future for millions of Australians,” ISA chief executive Bernie Dean said.

This year’s hike falls on the same day as the 30th anniversary of the super guarantee.

According to ISA, in 1992, just 10 per cent of retirees had super as an income source, and now super is most people’s second largest asset outside of their family home.

On average, today’s newly retired Australians have an extra $150 a week to spend than 1992’s newly retired (in wage adjusted terms), leading to early retirees’ spending growing at a faster rate than any other age group, and a reduced reliance on the aged pension.

“Thirty years of the superannuation guarantee is something to celebrate, delivering millions of workers money they would never have dreamed of having,” Mr Dean said.

Will the super guarantee increase affect my take home pay? 

Employees who receive their superannuation payments in addition to their base salary will not have their take home pay affected, as the increase in super will result in an increase in total remuneration.

Those who are on a superannuation-inclusive salary package, however, may have their take home pay affected by the increase.

If, for example, you receive a salary package of $60,000 inclusive of super, you would currently have $6000 per year deducted from your take home pay to cover your super guarantee. With the 0.5 per cent increase effective today hiking the super guarantee to 10.5 per cent, your take home pay could be reduced by a further $300 per year.

Consider checking your employment contract or having a discussion with your employer if you’re unsure how this could affect you personally.

When will I see my super payments increase?

The super guarantee increase is effective from today, 1 July 2022. However, you’ll have to wait a while to see the result of this in your super fund account. 

Employers are required to pay super for eligible employees at least four times per year, meeting quarterly due dates as set by the Australian Taxation Office.

You’ll likely see your first super guarantee payment at the new rate of 10.5 per cent from 28 October – the next quarterly due date covering the earning period of 1 July to 30 September.

Consider making a habit out of checking your super fund account, to ensure your payments are being made correctly and assess whether your investment options remain reflective of your preferences and career stage.


This article is over two years old, last updated on July 1, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent superannuation articles.

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This article was reviewed by Mia Steiber before it was published as part of RateCity's Fact Check process.