Superannuation Guarantee Rate (SGR)

Also referred to as the 'Statutory' or 'Compulsory' rate, the Superannuation Guarantee Rate (SGR) is the legislated minimum superannuation contribution rate that employers must pay on behalf of their employees.

The rate is calculated on each eligible employee's ordinary time earnings (OTE).

Employers are required to pay super guarantee contributions for each eligible employee at least four times a year.

Originally, the Australian Government planned to incrementally increase the SGR from from 9% in 2012-13 to 12% in 2019-20.

However, on 5th September 2014 legislation was passed deferring future SGR rises and locking it at 9.5% until 30 June 2021.

In 2021 further legislation was passed to raise the SGR to 10.0% for 2021-22 and increase it by 0.5% each year until reaching 12% for 2025-26 onwards.

Tax years - superannuation Guarentee Rates

2012-13 - 9.00%
2013-14 - 9.25%
2014-15 - 9.50%
2015-16 - 9.50%
2016-17 - 9.50%
2017-18 - 9.50%
2018-19 - 9.50%
2019-20 - 9.50%
2020-21 - 9.50%
2021-22 - 10.00%
2022-23 - 10.50%
2023-24 - 11.00%
2024-25 - 11.50%
2025-26 - 12.00%

How to Set the Super Guarantee Rate (SGR)

Legislated changes to the Superannuation Guarantee Rate (SGR) usually take effect from the first pay period that is paid on or after 1st July.

In early June Megabus releases a Marlin HR update that includes the tax scales and new SGR (if any) but does not activate them at that point.

After you complete the Marlin HR EOFY close-off procedure, opening the payrun screen automatically triggers the activation of the new tax scales and SGR, ready for the first payrun.

The SGR is set in one place in Marlin HR and is automatically used by all employees that have the Apply Compulsory Rate checkbox ticked in Employee Maintenance.

This saves you from having to enter a change to the SGR on every employee individually.

If you need to manually select a new SGR, select System > Options from the menu and then select the Employee Defaults tab.

At the bottom of the page is the section related to the SGR.

The dropdown list contains the legislated rates and the dates on which they are to become effective.

To apply the latest rate, select it from the list and then click on the Save icon.

Custom Superannuation Rates for All Employees

If you pay all your employees a higher rate than the currently legislated SGR, you should select Custom from the pick list and then type in the custom rate as shown here.

In this scenario, the extra employer contributions are not deemed "reportable super" (i.e. RESC) by the ATO as they apply to all employees. In Employee Maintenance, the higher rate will be shown in the Compulsory Rate field for each employee and you will leave the Additional Rate field empty.

Custom Rate for Some Employees Only

If you pay only some employees a higher rate than the currently legislated SGR, you should select the legislated SGR from the pick list (i.e. not Custom).

In Employee Maintenance the SGR will be shown in the Compulsory Rate for all employees and for those that you pay a higher rate you will enter the extra portion in the Additional Rate field.

Applying the SGR to Employees

Each employee entitled to employer superannuation contributions should have the Apply Compulsory Rate checkbox ticked and will automatically show the SGR (as selected under System > Options in the previous section) in the Compulsory Rate field.

If you pay all employees a higher rate then the currently legislated SGR, you will have entered this "Custom" rate as the default rate in the previous section and it will be shown in the Compulsory Rate field on each employee.

If you pay only some employees a higher rate, you will enter the difference (i.e. between the higher rate and the default rate) into the Additional Rate field on those employees.

Checking Employee Super Rates

You can easily see at a glance what Compulsory Rate and Additional Rate are set up for each employee, without having to open each employee in turn.

Simply open Employee Maintenance and view the rates on the summary screen.