Super guarantee changes July 2023: here’s what you need to know

It’s the start of a new 2023/24 financial year, and this means that from 1 July, you’ll be getting a bump in the super contributions made on your behalf by your employer. 

You’ll find the Super Guarantee rate has gone up from 10.50% to 11%. 

But the adjustments don't stop there - you can expect a further 0.50% increase next year, and again in 2025 when the super guarantee rate will be at 12%.

Why are these changes happening with superannuation?

According to economists, a lower rate of contribution was likely to leave employees with insufficient super for a comfortable retirement and as a result the Parliament legislated a gradual increase of the percentage to 12% by 2025.

The increase is stepped over a three year period to allow for businesses to plan and make the necessary changes.

Do I need to do anything to get the super increase? 

No, you don’t need to do anything to get the new 11% super guarantee rate, your employer should automatically be adjusting the amount and paying this into your superannuation fund. 

If after checking your super statement, you notice that the amount hasn’t increased, you should speak with your employer.

What about my superfund or investment choices? Do I need to change them? 

While it’s true that your employer’s contributions have gone up, you might still want to consider keeping tabs on your super investments and the performance of your chosen fund. 

Reviewing your fund’s performance, the fees you pay, and your available investment options will help you ensure you meet your financial goals. 

If you’re looking to see how your fund is performing compared with other superannuation funds, you can use the ATO’s comparison tool, YourSuper. It can be a useful way for you to gauge whether your superfund is on the right track for your needs.

Interested in learning more about super? Check our superannuation guide to find out all you need to know about saving for retirement. You can also stay ahead of the game by knowing what the latest developments are in personal finance.