The SG is the easiest way to grow your super - without you having to lift a finger.
Contrary to popular opinion, the super guarantee is not a guarantee that you will become a superhero.
However, it is just as cool. And, if we’re honest, loads more important.
The super guarantee - aka the SG - is the minimum amount your boss needs to contribute into your superannuation fund each time they pay you.
It’s legislated by the Commonwealth Government, which just means the Government controls what percentage of your salary goes into your super fund.
As of 1 July 2021, the SG increased from 9.5% of your base salary to 10%. So, if you have a base salary of $60,000 per year, your boss needs to pay 10% of that (i.e. $6,000) into your super fund each year.
There are tonnes of ways to grow your super. But most of them involve you actually sacrificing some of your salary to do it. Literally. It’s called salary sacrificing (which is where some employers let you put some of your before-tax salary into your super).
There are also after-tax contributions, which is where you just deposit some extra cash into your super fund.
But the SG rate is something that’s done for you by your employer - without you lifting a finger. And, it’s expected to go up to 12.5% by 2025, which means more super in your nest egg come retirement.
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