Millions of Australians are set to benefit from a significant increase to their retirement savings from 1 July, as the Superannuation Guarantee (SG) rate rises from 11.5% to 12%. This marks the final step in a long-term plan to strengthen the nation’s superannuation system.

According to the Australian Taxation Office, the SG rate increase will apply to all salary and wages paid on or after 1 July 2025. For the average worker, this change will result in approximately $317 more in super contributions over the next financial year.

Young and Low-Income Workers to Benefit Most

New analysis from the Super Members Council shows that around 10 million Australians will receive the boost, with the gains split almost evenly between men and women. More than half of those benefiting are under 40, with workers in their 30s making up the largest group.

Long-Term Impact on Retirement Savings

For a typical 30-year-old, the 0.5 percentage point increase alone could add around $22,000 to their super balance by retirement. When combined with the full increase from 9% to 12% over the past decade, the total boost could reach up to $132,000.

A System Built for the Future

Since the introduction of compulsory super in 1992, the system has transformed how Australians fund their retirement. At that time, only 10% of retirees listed super as a source of income. Today, around 90% of Australians aged 30 to 50 have superannuation accounts.

This shift has eased pressure on the taxpayer-funded Age Pension. Superannuation now pays out more than twice as much annually in benefits compared to the Age Pension. According to the 2023 Intergenerational Report, despite a doubling of Australians over 65 and a tripling of those over 85 by 2063, Age Pension spending is projected to fall from 2.3% to 2% of GDP.

A Stronger Retirement for All

The increase in the SG rate is expected to help Australians enjoy a more secure and fulfilling retirement. It supports greater financial independence, reduces reliance on government support, and contributes to national economic growth.