Quick Refresher: What’s SGC?
The SGC is the minimum your employer must pay into your super fund. Most employees currently get 11.5% of their ordinary earnings paid into super—soon that will be 12%.
Why the Change?
The government is gradually lifting the rate to help Australians retire with more savings. This 12% target has been in the works for years and is now becoming reality.
What It Means for You
- Employees: More money going into super = bigger retirement balance.
- Employers: Slightly higher payroll costs.
- Take-home pay: If your salary is plus super, you won’t notice a difference in your pay packet. If you’re on a total package, a small portion of your cash salary might shift into super.
Does 0.5% Really Matter?
Yes. For someone on $90,000 a year:
- At 11.5% → $10,350 into super
- At 12% → $10,800 into super
That’s $450 extra each year—which, over decades of investing, can add up to tens of thousands by retirement.
The Bottom Line
This small increase today is designed to give you a much stronger retirement tomorrow. Make sure to check back on your payslips since July 2025 to make sure you’re getting the right rate—and think about whether extra contributions could accelerate your retirement goals.
