Superannuation Guarantee Increases to 12% from 1 July 2025
From 1 July 2025, the Superannuation Guarantee (SG) rate will increase from 11.5% to 12%. This is the last scheduled increase.
The impact of this change will depend on the employment agreement you have in place:
⟩ If the employment agreement states the employee is paid on a ‘total remuneration’ basis (base plus SG and any other allowances), then their take home pay might be reduced by 0.5%. That is, a greater percentage of their total remuneration will be directed to their superannuation fund.
⟩ For employees paid a rate plus superannuation, their take home pay will remain the same and the 0.5% increase will be added to their SG payments – resulting in a higher combined cost for the employer.
Other changes impacting employers and employees from 1 July 2025:
- The National Minimum Wage will increase by 3.5%, corresponding to a minimum hourly rate of $24.95 or $948 per week.
- The Australian Taxation Office (ATO) will pay Superannuation on government funded Parental Leave Pay.
For any payroll queries, please feel free to get in touch on 0416 919 036 or contact@gpgbusinessadvisory.