Super Guarantee Increase to 12%: What Small Business Owners Need to Do from 1 July 2025

In this article, we’ll walk you through the update, what it means for you as an employer, and the simple steps you can take today to prepare.

What is the Super Guarantee?

The Super Guarantee is the minimum amount you must contribute to your eligible employees’ superannuation funds. This amount is calculated as a percentage of their ordinary time earnings (OTE), such as salaries and wages. The SG is not something employees opt into — it’s a legal requirement for all employers in Australia.

What's Changing?

From 1 July 2025, the SG rate increases from 11.5% to 12%. This means for every dollar you pay in wages, you’ll need to contribute 12 cents into your employee’s super fund.

Even if the pay period began before 1 July, the new rate applies to all payments made on or after this date. This is an important detail to get right when processing payroll for the end of the financial year.

👉 ATO: Super Guarantee Rates and Thresholds – Table 21

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What Small Business Owners Need to Do

Here’s what you need to do to stay compliant and keep your business running smoothly:

1. Update Your Payroll Software

Check that your payroll system — whether it's Xero, MYOB, QuickBooks, or another provider — is set to apply the 12% SG rate from 1 July 2025. Most providers will release an update automatically, but it’s worth confirming to avoid errors.

2. Communicate with Your Team

If you’ve got employees on a total remuneration package (where super is included in their salary), the increase may reduce their take-home pay. Be clear and transparent about any changes that affect their overall compensation.

3. Review Employment Contracts

It’s a good time to double-check employment contracts to ensure the SG clause aligns with the new rate. If super is paid in addition to base salary, there won’t be a change in take-home pay — but you’ll still need to budget for the increased cost.

4. Budget for the Increase

If you employ multiple staff, the rise from 11.5% to 12% may noticeably impact your payroll expenses. Review your financial forecasts and adjust accordingly so you’re not caught short in the next quarter.

5. Pay on Time

Super contributions must be paid quarterly, with the next due date being 28 July 2025. Make sure your payment schedule aligns with the new rate — late payments can incur penalties and interest from the ATO.

What Happens If You Don’t Update?

Failing to update your SG contributions means you could:

• Be liable for the Superannuation Guarantee Charge (SGC)
• Miss out on tax deductions for late payments
• Face potential ATO audits or penalties

Getting on top of this now ensures you're compliant — and protects your business from future headaches.

Need Help?

At Thriday, we’re here to make business admin easier. If you’re using Thriday to manage your business banking, accounting and tax, you can rest easy knowing you’ll be able to track your super payments and cash flow with ease.

For more detailed guidance, visit the ATO’s official Super Guarantee page.

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