Superannuation Guarantee

Who it is for

Employees (with limited exemptions). Self-employed people may contribute voluntarily.

A compulsory occupational contribution. Retail income protection and the Age Pension are different contracts.

ISSA (1 January 2024) — Mandatory occupational pension (ISSA 2024)

Superannuation Guarantee: employer contribution on ordinary-time earnings. ISSA as of 1 January 2024 recorded 11%, rising 0.5% each financial year to 12% by 1 July 2025. Compass treats 12% as the rate in force in 2026. Self-employed may contribute voluntarily. The account can be withdrawn as a lump sum or income stream at preservation age, or earlier for total and permanent disability.

Complementary pensions (31 Dec 2024) — Twin peaks regulation

From 1 July 1998 Australia uses a twin-peaks model. APRA is the prudential regulator of superannuation funds (except SMSFs) and must promote stability and the best financial interests of members. ASIC is the market, conduct and disclosure regulator for financial products and advice. The ATO regulates self-managed superannuation funds and Superannuation Guarantee compliance, and keeps the register of regulated funds. The Financial Accountability Regime (FAR Act 2023) applies to superannuation trustees from 15 March 2025.

Complementary pensions (31 Dec 2024) — What ‘superannuation’ means

Savings dedicated to financial benefits in retirement. The word is preferred to ‘pension’ because lump sums have historically been more common than income streams. Mandatory employer contributions sit under the Superannuation Guarantee (Administration) Act 1992, in addition to salary. Only regulated complying funds may receive SG contributions and concessional tax treatment.

Complementary pensions (31 Dec 2024) — Types of fund

Public-sector (DB, DC or hybrid); employer-sponsored; industry (mostly DC, now usually open to the public); retail (open to the public, generally DC); self-managed funds (no more than six members, each a trustee or director, ATO-regulated); and retirement savings accounts (capital-guaranteed, under 1% of assets). Default contributions go to a MySuper product unless the employee chooses a fund or is stapled to an existing account. Award-named funds remain the usual employer default where an industrial award applies.

Complementary pensions (31 Dec 2024) — Who must be paid Superannuation Guarantee

Employers must contribute for eligible employees. They are not required to contribute if the employee is under 18 and works 30 hours or less a week; is paid for domestic or private work 30 hours or less a week; is a non-resident paid for work done outside Australia; is in a listed foreign-executive category; or is temporarily working in Australia for an overseas employer and covered by a bilateral superannuation agreement. The $450-a-month earnings threshold was removed in 2022. Self-employed membership is voluntary, with tax concessions.

Complementary pensions (31 Dec 2024) — Choice, stapling and MySuper

Most employees may choose the fund. If they do not, and the employer has checked with the ATO that they have no stapled account, SG must go to a fund with an authorised MySuper product. Your Future, Your Super (2021) added an annual performance test, an online comparison tool, stapling to cut duplicate accounts, and a best-financial-interests duty. Your Super, Your Choice (2020) extended choice to employees under enterprise agreements from 1 January 2021. The employer generally has 28 days from starting employment to start the choice process. Failure to pay SG attracts a Superannuation Guarantee charge (shortfall, interest and administration) which is not tax-deductible.

Complementary pensions (31 Dec 2024) — When you can take it

Preservation age is 55 if born before 1 July 1960, rising to 60 if born after 30 June 1964. Benefits are generally tax-free after age 60 from a taxed fund once you have permanently retired, or from age 65. From preservation age you may keep working and draw a non-commutable transition-to-retirement income stream (TRIS); from 1 July 2017 TRIS earnings are taxed until you retire or turn 65. Early lump sums are limited: compassionate grounds, severe financial hardship, permanent incapacity, terminal medical condition. Temporary incapacity is paid only as a non-commutable income stream. Temporary residents may take contributions when they leave Australia, after withholding tax. Exit fees have been banned since 1 July 2019. Portability: a fund must usually move nominated benefits within three days of a written request.

Complementary pensions (31 Dec 2024) — Disability and death

Disability and survivor benefits are not legally required; they depend on fund rules and any insurance the fund holds. Total and permanent disability: the trustee must be reasonably satisfied the member is unlikely, because of ill-health, to return to work they are qualified for by education, training or experience. Accrued rights may be paid as lump sum, pension, or both. On death before retirement, benefits may go to the legal personal representative or dependants (spouse, child, or a person in an interdependency relationship). A member may give a binding death-benefit nomination. Maximum survivor benefit cannot exceed 100% of what would have been payable to the member.

Complementary pensions (31 Dec 2024) — Tax (complying funds)

Employer and deductible personal contributions, and fund earnings, are taxed at 15% in a complying fund (10% on capital gains held over a year). Earnings that support pension-phase assets are tax-exempt, subject to the transfer-balance cap (this profile records A$1.9 million from 1 July 2023; that cap indexes — Compass does not treat A$1.9 million as the 2026 figure). Benefits paid after age 60 from a taxed fund are tax-exempt. LISTO rebates contributions tax for eligible low-income earners, up to A$500. A government co-contribution of up to A$500 (2023–24) may apply to after-tax voluntary contributions by low-income members. Non-complying funds are taxed at 45%.

Complementary pensions (31 Dec 2024) — Complaints — AFCA

Trustees must have an internal dispute-resolution system that meets ASIC RG 271. They must belong to the Australian Financial Complaints Authority (AFCA), which replaced FOS, CIO and the Superannuation Complaints Tribunal from 1 November 2018. AFCA can negotiate, conciliate, or determine: affirm, vary, send back, or substitute the trustee’s decision. A determination binds the trustee; appeal to the Federal Court is on a question of law only. There is no government benefit guarantee. Financial assistance after fraud or theft is a levy-funded discretion, not an automatic compensation scheme.

Complementary pensions (31 Dec 2024) — Who to write to

APRA — Level 12, 1 Martin Place, Sydney NSW 2000 — apra.gov.au (prudential regulation of funds other than SMSFs). ATO — 26 Narellan Street, Canberra ACT 2601 — ato.gov.au (SMSFs and Superannuation Guarantee). ASIC — Level 5, 100 Market Street, Sydney NSW 2000 — asic.gov.au (conduct, disclosure, AFS licences, AFCA oversight).

Conditions

Employment

Paid to eligible employees on ordinary-time earnings. Some under-18 and low-hours domestic workers may be exempt.

Preservation

Generally locked until preservation age, death, or total and permanent disability (a medical certificate is required for TPD release).

SG exemptions

No SG if under 18 and ≤30 hours a week; domestic/private work ≤30 hours a week; non-resident paid for work outside Australia; certain foreign executives; or temporarily in Australia for an overseas employer under a bilateral agreement. The old $450/month threshold no longer applies (2022).

Default fund

If you do not choose, and you are not stapled to an existing account, the employer must pay SG into an authorised MySuper product (or the award-named fund where an award applies).

Complaint path

Internal dispute resolution first, then AFCA. A determination binds the trustee.

Primary source first. A disputed or stale figure stays visible. Hover a rand or dollar figure for four other currencies. W weekly · F fortnightly · M monthly · A annually.

Cross-checks

• disagrees ISSA country profile — Australia ISSA Country profiles: Australia, policies as of 1 January 2024 (https://www.issa.int/node/195543?country=796). Amounts lag the 1 July 2026 payments guide (co029-2607). Compass keeps 2026.
• disagrees Complementary pensions (Mandatory) — Australia ISSA complementary pensions (Mandatory), node 195545, country 796, updated 31 Dec 2024. Structure agrees (twin peaks, MySuper, stapling, AFCA, 15% contributions tax). SG 11% and the 2023–24 earnings-base / $1.9m transfer-balance figures lag 2026 — Compass keeps 12% SG as current. https://www.issa.int/node/195545?country=796

How to apply

The employer pays. You choose or are allocated a fund. ATO Super.

Methodology

Amounts and conditions are stored on this payment in Core AU (coreau_ss_*). Verify with the administrator before you rely on a number.