The Superannuation Guarantee rate is currently 11.5%. It will increase to 12% on 1 July 2025.
If you are employed in Australia in any capacity, you must be paid super by your employer. This is paid on top of your annual salary known as the Super Guarantee (SG). This includes many people who may consider themselves self-employed but are employed by their own company or trust.
Currently, your employer must contribute 11.5% of your salary into super. This rate will increase to 12% on 1 July 2025.
The intention behind the gradual increase is to see a greater proportion of retirees relying less on the Age Pension and more on their retirement savings.
You’re generally eligible for super if you’re employed (regardless of your income), aged 18 years or over, or under 18 and work more than 30 hours a week. This includes employees who work full-time, part-time or on a casual basis, as well as those on a temporary visa.
The super guarantee of 11.5%, which your employer contributes into your super, may not be enough to sustain the lifestyle you currently have, or the one you wish to have, during your retirement.
There are a range of strategies you can implement to improve your retirement savings, like putting a little extra money into your super while you’re still working.
Personal super contributions—those made from savings or your take-home pay—may be tax deductible. These tax deductions can be claimed against your assessable income when you lodge your tax return.
Personal deductible contributions and employer super contributions are concessional contributions which are capped at $30,000 per financial year unless you are eligible to use unused concessional contribution caps from the last five financial years. If you contribute over this amount, the excess amount will be included in your taxable income.
There are many ways you can look after your retirement savings to have the best possible future.
When is the next increase in the superannuation guarantee rate?
The superannuation guarantee rate will increase on 1 July 2025 to 12%.
Can I withdraw my super at any time?
No. You must be retired and have reached your preservation age—preservation age is 60 from 1 July 2024. You can also draw your super if you leave work after age 60 on or after you reach age 65.
There are some circumstances however, where you may be able to access it early.
How does super get paid out?
When you retire, you can withdraw your super in three ways. You can access it as a lump sum payment, start an income stream. This allows you to access it as a regular income, in a similar way to if you were still working. You also have the option to do both.
* Based on KPMG Super Insights 2023 Report as at May 2023 KPMG Super Insights 2023 Report
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This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). The information in this article is current as at June 2024 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.
