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High lack of awareness around SG rates
Almost three-quarters of Australians are unaware of the current superannuation guarantee (SG) rate.
A survey commissioned by Australian Retirement Trust (ART) and conducted by YouGov of over 2,000 people found 71 per cent are unaware of the current rate of 10.5 per cent.
Men are more likely than women to know the current SG rate at 35 per cent compared to 24 per cent of women and Gen Z are the most unsure demographic with 29 per cent saying they do not know the current rate.
This is followed by Gen X at 22 per cent, Baby Boomers at 19 per cent, and Millennials at 17 per cent.
Awareness is even more important as the SG rate will be increasing from 10.5 per cent to 11 per cent in the new financial year next week. It will then increase again in 1 July 2025 to 12 per cent.
As well as this, payday super will start from 1 July 2026 meaning it is important members know how much they should receive from their employer. The changes will see employers paying their employees’ super at the same time as their salary.
ART chief executive, Bernard Reilly, said: “It’s important to remember that the 10.5 per cent per annum your employer pays into your superannuation is your money, to help you retire well, with confidence.
“Super is the largest and longest-term asset most of us will have and when it comes to engaging with your super fund, the sooner the better. Think of it as an investment in your future — you want to make every dollar count.”
With the end of the financial year fast approaching, Reilly suggests member review their fund’s performance and fees, consolidate multiple accounts, and consider the right investment option for their stage of life.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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