From 1 July 2014, the Superannuation Guarantee rate increases to 9.5%, from the 9.25% that currently applies.
Superannuation Guarantee (SG) is the official term for compulsory superannuation contributions made by employers on behalf of their employees. An employer, regardless of whether they are a small or large business, must contribute the equivalent of 9.5% of an employee’s salary for the 2014/15 year, and 9.25% until 30 June 2014.
In the 2014 Federal Budget, the planned increase in Superannuation Guarantee contributions of 9.25% to 12% overt the next 5 years has been amended by the Liberal government, stretching the timeline for implementation to 8 years.
Effective 1 July 2014, the Superannuation Guarantee will increase to 9.5%, and will eventually rise to 12% by July 2022.
The amended increases are to be as follows:
| Financial year | SGC rate |
| Current year 2012 – 2013 | 9.00% |
| 2013 – 2014 | 9.25% |
| 2014 – 2015 | 9.50% |
| 2015 – 2016 | 9.50% |
| 2016 – 2017 | 9.50% |
| 2017 – 2018 | 9.50% |
| 2018 – 2019 | 10.00% |
| 2019 – 2020 | 10.50% |
| 2020 – 2021 | 11.00% |
| 2021 – 2022 | 11.50% |
| 2022 – 2023 | 12.00% |