Super Guarantee Rate History — From 3% to 12%

SG Rate Timeline — Every Rate Since 1992

The Superannuation Guarantee was introduced by the Keating Government in 1992 at 3% of ordinary time earnings. It was designed to progressively increase to ensure Australians built adequate retirement savings. The table below shows every rate from inception to the current 12% ceiling.

The Path to 12% — Freezes and Delays

The original plan was for the SG to reach 12% by 2019-20, but the Abbott Government froze the rate at 9.5% in the 2014 Budget. The freeze lasted seven years, from FY2014-15 to FY2020-21.

The stated rationale was that super increases would reduce take-home pay and suppress wage growth. Critics argued the freeze short-changed retirement savings, particularly for lower-income workers who depend most on compulsory super.

Annual 0.5 percentage point increases resumed from 1 July 2021, following the passage of the Treasury Laws Amendment (Your Future, Your Super) Act 2021. The legislated schedule was:

• 1 July 2021: 9.5% → 10%
• 1 July 2022: 10% → 10.5%
• 1 July 2023: 10.5% → 11%
• 1 July 2024: 11% → 11.5%
• 1 July 2025: 11.5% → 12% (legislated ceiling)

The seven-year freeze cost a worker on the average full-time salary (approximately $95,000) an estimated $20,000 to $30,000 in lost super contributions over the freeze period, before accounting for investment returns.

Impact on Take-Home Pay Over Time

Each SG rate increase adds to the employer's total cost of employment. Whether the increase reduces employee take-home pay depends on how the cost is absorbed.

In theory, SG increases are paid on top of salary, meaning take-home pay should remain unchanged. In practice, economic research from the Grattan Institute and Treasury suggests that over the medium to long term, roughly 80% of SG increases come at the expense of slower wage growth rather than as a pure additional cost to employers.

The table below illustrates the employer cost impact of SG changes on a $100,000 salary:

From FY2014-15 to FY2025-26, the annual super contribution on a $100,000 salary increased by $2,500 — from $9,500 to $12,000. Use the Superannuation Calculator to model how this impacts your projected retirement balance.

What Comes After 12%?

There are currently no legislated plans to increase the SG rate beyond 12%. The 12% ceiling was set by the Superannuation Guarantee (Administration) Act 1992 as amended, and no further increases have been introduced to Parliament.

Some industry bodies, including the Australian Institute of Superannuation Trustees (AIST) and Industry Super Australia, have advocated for a long-term target of 15%. Their argument centres on ensuring adequate retirement income, particularly for women and lower-income workers with broken career patterns.

Opponents, including some economists and employer groups, argue that further increases would suppress wages and disproportionately affect younger workers who face housing affordability challenges. The current political consensus is that 12% represents the final rate for the foreseeable future.

Workers seeking to build super beyond the 12% SG can make voluntary concessional contributions up to the $30,000 annual cap (including employer SG) or after-tax non-concessional contributions up to $120,000 per year. Read more in our Superannuation Guide.

Frequently Asked Questions