What is the Superannuation Guarantee (SG)?

If you’re starting your first job, you might hear about something called the Superannuation Guarantee (SG). Here’s a simple guide to help you understand what it is and why it matters.

The Superannuation Guarantee is a law in Australia that requires your employer to contribute a percentage of your regular earnings into your superannuation account. This helps you build up savings for your retirement, even while you’re working.

Currently, the SG rate is 11.5% of your ordinary earnings, and it’s scheduled to increase to 12% from 1 July 2025. For example, if you earn $1,000 in a week, your employer must contribute $115 to your super fund. This is on top of your regular pay.

You’re eligible for SG contributions if you’re 18 or older. If you’re under 18, you must work at least 30 hours a week to qualify. Note that the $450 threshold no longer applies.

Your employer will usually ask for your super fund details when you start a job. If you don’t provide them, they will create an account for you with their default super fund. It’s a good idea to keep track of your super to ensure you’re getting paid the right amount.

The SG is a simple way to ensure that everyone in Australia is saving for their future, so don’t forget to keep an eye on your super contributions.