Superannuation Guarantee legislation
Definition

abbrev. SG legislation legislation which requires employers to provide a minimum level of superannuation support for most employees. Employers can meet the requirements of the legislation by making the required contributions to an appropriate superannuation fund by the twenty-eighth day following the end of the quarter in which the relevant income was earned or by paying a penalty charge (the Superannuation Guarantee Charge) to the ATO.

The Superannuation Guarantee schedule is as follows:

Year Superannuation Guarantee
(% of salary to be paid by employer to complying superannuation fund or RSA)
1997-1998 6 per cent
1998-1999 7 per cent
1999-2000 7 per cent
2000-2001 8 per cent
2001-2002 8 per cent
2002-2003
to
2012-2013
9 per cent

Superannuation Guarantee contributions must be made to a complying superannuation fund in accordance with the choice of fund requirements, are fully vested and must be preserved from 1 July 1994. Superannuation Guarantee applies to all employees paid $450 or more per month.

In 2012 the Government legislated to increase the SG rate from 9 per cent to 12 per cent. The new Superannuation Guarantee schedule is as follows:

Year Superannuation Guarantee
(% of salary to be paid by employer to complying superannuation fund or RSA)
2013-2014 9.25 per cent
2014-2015 9.5 per cent
2015-2016 10 per cent
2016-2017 10.5 per cent
2017-2018 11 per cent
2018-2019 11.5 per cent
2019-2020
(and thereafter>
12 per cent
Related Terms
See also choice of superannuation fund , Superannuation Guarantee Charge , vested benefit