Final super change to leave Aussies $125k better off

Media release - 19 June 2025

Australia’s high-flying superannuation savings rate is about to hit cruising altitude after a consistent climb over the last five years.

On 1 July 2025, Australia’s Superannuation Guarantee (SG) rate takes another step forward in boosting retirement, savings, increasing from 11.5% to 12%.

But despite superannuation being one of the most important investments most Australians will make across a lifetime, research commissioned by Australian Retirement Trust (ART) shows four out of every five Australians don’t know how much they’re putting away for retirement.

ART Executive General Manager for Advocacy and Impact, Anne Fuchs, said the boost to the SG rate is good news for all working Australians.

“This half per cent step may seem small, but for working Australians, it’s like reaching the summit of your own financial Everest,” Mrs Fuchs said.

“Since the Superannuation Guarantee was introduced in 1992, it has become the cornerstone of Australia's retirement system – evolving from a modest 3% contribution to a robust framework that provides you with meaningful savings for your future.

“An increase in superannuation contributions means you’ll be adding that little bit extra to your super and over time, that really adds up.”

This is the final step in a five-year super charge for super. For a 30-year-old earning $100,000, the increase in the SG rate from 9.5% in 2020 to 12% in 2025 means they’ll now be more than $125,000 better off in retirement at age 67, illustrating the powerful effect of compound returns over a working lifetime ¹.

"In a fortnightly pay statement, the increase in the SG rate may seem tiny.

“But over a working lifetime, the magic of compound returns can turn those small increases into hundreds of thousands of dollars.

Perhaps because it’s seen in such small increments, the increases in the SG rate can go largely unnoticed by most Australians.

“Whether you’re just starting your career or nearing retirement, understanding these changes can help you make smarter financial decisions,” Ms Fuchs said.

“The Superannuation Guarantee is important for every Australian and for Australia as a whole.

“As we look towards our own retirement savings, we should also look towards ensuring the Superannuation Guarantee is fit-for-purpose as our nation ages and grows.

“This July, do your due diligence by checking your payslip to make sure you’re being paid super at the new rate, Mrs Fuchs said.

“Check your super balance and use superannuation retirement calculators to estimate its future value.”

ART's Executive General Manager of Advocacy and Impact Anne Fuchs’ recommends the following actions from 1 July 2025:

1. Check your payslip: After 1 July 2025, verify that your employer is contributing 12% of your ordinary time earnings to your super fund.
2. Consider additional contributions: You might consider salary sacrificing to boost retirement savings.
3. Calculate your potential future earnings: Try tools like ART’s Retirement Calculator to see how the SG increase could affect your future savings and whether you’re on track for your retirement goals.
4. Review your super fund: Ensure your fund is performing well, has the right benefits for you, like insurance and that fees are reasonable. A small difference in performance or fees can significantly impact long-term savings.
5. Seek financial advice: If performance is not tracking how you would like, talk to your fund. At ART, advice on your super is included as part of your membership.

Now’s the perfect time to be checking the health of your superannuation, and these simple steps combined will help you take control of your financial future,” Mrs Fuchs said.

For more information on the SG rate, visit Super guarantee rate increase: What you should know | ART.

About Australian Retirement Trust

Australian Retirement Trust is one of Australia’s largest super funds. Over 2.4 million Australians trust us to take care of over $330 billion of their retirement savings. We’re here to help our members retire well with confidence, focused on strong long-term investment returns, low fees and the information and access to advice our members need to manage their super and retirement.

For information on the assumptions and limitations used in the scenarios described above, please refer to the ASIC Moneysmart Retirement Planner (accessed May 2025 at https://moneysmart.gov.au/retirement-income/retirement-planner)

Past performance is not a reliable indicator of future performance.

This is general information only. It’s not based on your personal objectives, financial situation or needs. So, think about those things and read the relevant Product Disclosure Statement and Target Market Determination at art.com.au/pds before you make any decision about our products. And if you’re still not sure, talk with a financial adviser.

This information and all products are issued by Australian Retirement Trust Pty Ltd ABN 88 010 720 840, AFSL 228975, trustee of Australian Retirement Trust ABN 60 905 115 063 (‘the Fund’ or ‘ART’).