Your super got a pay rise, make it work for you

The Superannuation Guarantee is Australia’s compulsory system where employers must pay a percentage of your salary into your super fund. It’s been gradually increasing since 2021, and on 1 July 2025, it went up from 11% to 12%. This means that for most employees in Australia, your employer will be putting a little more into your retirement savings every time you’re paid.

For example, If you earn $80,000 p.a -

• At 11% SG, your employer contributes $8,800/year.
• At 12% SG, they’ll contribute $9,600/year.
  That’s $800 extra per year, which over 20 years with 6% annual growth could add up to around $30,000 more in retirement.

That’s why this is the perfect time to take a closer look at what your super is actually doing. Are you in the right investment option for your stage of life? Are your fees eating into your returns? Is the insurance cover included in your super still suitable for your needs? These questions matter even more now, because more of your income is about to be invested on your behalf.

Why This Matters

• More money in: A higher SG rate means bigger contributions every year. Over decades, even a small percentage increase can compound into tens (or hundreds) of thousands more in retirement savings.
• Compounding advantage: Superannuation earnings are reinvested. More contributions now means more growth later — a “snowball” effect.
• Tax efficiency: SG contributions are taxed at a concessional 15% (for most people), which is generally lower than your marginal income tax rate.

Why Now Is the Time to Review

Since more of your salary will be flowing into your super, this is the perfect time to ask:

1. Is my super invested in the right way?
   Your investment mix (growth vs defensive assets) can have a bigger impact over time than the contribution rate.
2. Are my fees too high?
   Even a 0.5% fee difference can erode thousands from your balance over the long run.
3. Is my insurance cover appropriate?
   Super often includes life, TPD, and income protection insurance — but the cost and coverage vary.
4. Should I add more voluntarily?
   You might top up with salary sacrifice or personal deductible contributions to accelerate your retirement savings.

Put simply your super just got a nice annual pay rise.

Now’s the time to check your fund’s performance, fees, and investment mix. Your future self will thank you.

📞 Talk to us today and we’ll help you make sure it’s being managed in a way that turns that boost into a much bigger retirement balance down the track.