The Superannuation Guarantee rate remained at 9.5% for the 2015/2016 financial year, and again remains at 9.5% for the 2016/2017 financial year. The Superannuation Guarantee rate first increased to 9.5% from 1 July 2014 (the 2014/2015 year).
Based on revised laws, the SG rate will remain at 9.5% for another 5 years, increasing to 10% from July 2021, and eventually increasing to 12% from July 2025.
Superannuation Guarantee (SG) is the official term for compulsory superannuation contribution made by employers on behalf of their employees. An employer, regardless of whether they are a small or large business, must contribute the equivalent of 9.5% of an employee’s ordinary earnings for the 2015/2016 year (and also for the 2016/2017 year) and was also the case for the 2014/2015 year. (The SG rate was 9.25% for the 2013/2014 year).
Note. In short, the SG rate will now remain at 9.5% until 30 June 2021, and will then increase to 10% from 1 July 2021, the then increase by 0.5% increments each year until it reaches 12% by 1 July 2025.