On 1 July 2025, the superannuation guarantee rose from 11.5% to 12%. This means that on top of a union-won increase to the minimum wage of 3.5%, retirement balances are also going up.
An entry level worker will be $1,666 per year better off from the wage increase, and that means they’ll be about $200 better off over the next 12 months in their super.
In addition, from 1 July superannuation became payable on government paid parental leave.
The combined impact of recent wage rises, the tax cuts that were introduced last year, super on paid parental leave, and the increased rate of superannuation is a win for all Australians, now and in the years ahead.
All about superannuation
Many workers, especially young workers, have heard of super, but don’t always understand how it works.
Superannuation (or super) is a savings account in Australia that is designed to help you save for retirement. You are entitled to a minimum of 12% (from 1 July 2025) super on top of your wages.
You can also add extra money to your super through voluntary contributions, and in some cases, the government may match part of what you contribute.
One of the key features of super is that it’s “preserved”, meaning you generally can’t access the money until you retire. This rule exists to make sure your savings grow over time.
Superannuation is a hard-won workplace right, originally secured by unions in the 1980s and later made law for all workers by the Hawke Government in the 1990s.
Since then, the nature of work has changed significantly, and while super has helped many, it’s time to make the system fairer and more inclusive for everyone.
Fixing the Gaps
Australia’s superannuation system is recognised as one of the best in the world, but there’s still work to do to ensure it delivers a secure retirement for everyone.
To truly finish the job, super must be paid on every dollar you earn. Right now, there are still gaps in the system that leave too many workers missing out on crucial super contributions.
Closing these gaps is essential to making super fairer and ensuring that all workers can retire with dignity and financial security.
Super for under 18s
One major gap in the superannuation system is the exclusion of workers under 18. Currently, if you’re under 18, you only receive super if you’re working more than 30 hours a week — a rule that is both outdated and unfair.
Many young people begin working well before they turn 18, often juggling school and part-time jobs for years. The super contributions they miss out on during this time can add up significantly — potentially tens of thousands of dollars lost by the time they retire.
It’s time to close this gap and ensure that all workers, regardless of age, earn super on every dollar they make.
On the topic of Super for under 18’s, SDA member Sonia said she supports the campaign because:
“As a mother of 3 children, I know that if they were able to get Superannuation the moment they started working, their future would be more secure and it would relieve a lot of worry about how they would be able to survive when they retire or get injured when they are young.”
Super should be paid on pay day
Currently, there’s no requirement for employers to pay your superannuation on the same day as your pay and it is generally paid quarterly.
As super payments are made by your employer and make up part of your pay on your payslip, there’s no reason it should be treated differently.
The SDA has been advocating for this change over several years nd now the Federal Government has committed to making this change but it is not yet law.
When super is only paid quarterly, the benefits of compound interest are lost for the individual employee – that money is sitting with the employer for three months when it could have been earning interest for the employee.
The Super Members Council has found:
“for 9 million Australians, having super paid on paydays – and not four times a year – will mean they start earning compound investment returns sooner, delivering an extra $7,700 on average by retirement.”
The current system of quarterly payments mean less money in your super earning interest.
Many employers are supportive of pay day super and some even do it already which means it’s time to make the change.
By Darryn Gaffy, SDA Industrial Officer