Super guarantee rates: a history
By Matt Read, Super Members Council Australia Head of Strategic Communication
Published 28 April 2026
Super is now a familiar part of working life in Australia, but it hasn’t always been that way.
Australia’s superannuation system has been built gradually over time, shaped by policy decisions, economic shifts and changing ideas about retirement.
At the heart of that system sits the super guarantee, and understanding what it is and how it has evolved can help us make sense of how super works today.
Super guarantee explained
The super guarantee (SG) is the minimum amount employers must contribute to their employees’ superannuation.
Employers pay this as a percentage of earnings, and it goes straight into your super fund. It’s paid on top of your wages, not taken out of them.
When the super guarantee was introduced in 1992, employers were required to contribute 3% of wages.
Today, the super guarantee is 12%—the result of a long, gradual increase designed to help Australians build more adequate retirement savings.
Want to see how Australia’s retirement system compares to the rest of the world? Read our Global Pension Rankings report.
How the super guarantee has evolved
The super guarantee didn’t arrive at 12% overnight.
It started small, grew gradually, has been supported by decades of policy decisions and through changing governments, but has always been based on an understanding of what Australians actually need to retire comfortably.
Here’s how the super guarantee rate evolved over the years.
| Date | SG Rate | Govt in power | Impact and outcomes |
| 1992 (scheme introduced) | 3% | Keating’s Labor Government | Established Australia’s superannuation system, making retirement savings standard and expanding coverage to women and lower-income workers across the workforce. |
| 1 July 2002 – 30 June 2013 | 9% | Howard (Coalition), then Rudd/Gillard (Labor) | Stability allowed super balances to grow. 2012 reforms set the path to 12%, improving outcomes for younger workers over time. |
| 1 July 2013 – 30 June 2014 | 9.25% | Gillard (Labor), then Abbott (Coalition) | First increase above 9%. This marked the start of a planned rise to 12%, boosting contributions and improving long-term outcomes. |
| 1 July 2014 – 30 June 2021 | 9.5% | Abbott, Turnbull, Morrison (Coalition) | Rate paused at 9.5%. Slowed growth in super balances and delayed progress toward the planned 12% contribution level. |
| 1 July 2021 – 30 June 2022 | 10% | Morrison (Coalition) | Increases resumed, and the path to 12% restarted. |
| 1 July 2022 – 30 June 2023 | 10.5% | Morrison (Coalition), then Albanese (Labor) | Continued scheduled increase. Higher contributions begin compounding earlier, improving retirement outcomes over time. |
| 1 July 2023 – 30 June 2024 | 11% | Albanese (Labor) | Ongoing increases strengthen balances, although women’s super remains impacted by career breaks. |
| 1 July 2024 – 30 June 2025 | 11.5% | Albanese (Labor) | Nearing 12%, higher contributions hope to improve outcomes, especially for younger workers and lower-income earners. |
| 1 July 2025 – 30 June 2026 and onwards | 12% | Albanese (Labor) | Reaches target rate. Stronger baseline contributions are hoped to help improve retirement outcomes more broadly. |
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FAQs
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What determined the super guarantee rate each year?
The super guarantee rate is set by legislation. The most recent set of increases was legislated in 2012 and has been progressively implemented since then. Any future changes would need to go through the same legislative process.
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Can employers pay more than the super guarantee?
Yes. The super guarantee is a minimum, not a cap. Employers can choose to contribute more than the required rate, and some do as part of salary packages or enterprise agreements.
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What happens if my employer doesn’t pay the super guarantee?
Employers who don’t pay the required super guarantee are required to pay a super guarantee charge (SGC) to the ATO, which includes the unpaid amount, interest, and an administration fee. Here is more information on how to address unpaid superannuation.
You can also report non-payment to the ATO directly. -
How does part-time or casual work affect my super guarantee?
Most part-time and casual workers are entitled to the super guarantee, provided they meet the eligibility rules.
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Does the super guarantee apply to all workers?
Most Australian employees are covered, but there are some exceptions. Workers under 18 who work fewer than 30 hours per week are currently excluded from the super guarantee, along with domestic workers employed privately who work less than 30 hours per week.
About the author
Matt Read
Super Members Council Australia Head of Strategic Communication
Matt is responsible for strategic stakeholder engagement, communication, and advocacy at SMC and has over 20 years of experience as a strategic communications leader.
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