The Superannuation Guarantee (SG) is the cornerstone of Australia’s compulsory superannuation system. The SG lifts the living standards of Australians in retirement and has a positive impact on the Australian economy.
The SG requires employers to pay 9.5 per cent of an employee’s earnings into their superannuation fund. From July 1, 2021, the SG is legislated to rise in half per cent increments each year until it reaches 12 per cent of wages in 2025.
ASFA considers 12 per cent SG to be critical to helping individual retirees to achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future federal Government budgets as the population ages.