Grow your super balance
If you have an employer, one easy way to grow your super balance is to make sure they’re paying your Super Guarantee (SG for short) into your preferred super account. If you’re changing jobs, don’t forget to set this up with your new employer!
What is Super Guarantee (SG)?
SG is the regular contributions that your employer is required to make into a super fund on your behalf. The amount is based on a percentage of your salary and is set by the Australian Government.
From 1 November 2021, your existing super fund will be ‘stapled’ to you, moving with you if you change jobs. This has been implemented to reduce people paying fees and insurance premiums on unwanted duplicate accounts.
When you commence work with a new employer, your super contributions must be paid to:
- Your chosen fund (find out how to nominate Australian Ethical as your chosen fund), or
- Your stapled fund (if you have not made a choice), or
- Your employer’s default fund (if you have not made a choice and don’t have a stapled fund).
When starting a new job, it is recommended that you provide your chosen super fund’s information to your employer. If you don’t provide a choice, your employer will need to check with the ATO to determine if you have a stapled fund. If the ATO determines that an employee has no existing super fund, the employer can pay SG contributions into their default fund.
What is the SG percentage rate?
From 1 July 2021, the SG amount increased from 9.5% to 10% of your salary. This is part of a staged approach to increase the SG amount to 12% in the coming years to help boost your retirement savings.
Below is how the staged approach will look like:
|1 July 2021||10%|
|1 July 2022||10.5%|
|1 July 2023||11%|
|1 July 2024||11.5%|
|1 July 2025||12%|
Am I entitled to super?
Generally, you’re entitled to receive SG contributions if you’re an employee, aged 18 or over and are paid $450 or more (before tax) a month#. Those under 18 are required to work more than 30 hours per week to be entitled to receive SG contributions.
If you think you’re not getting paid the correct amount of super discuss it with your employer or visit the ATO website to recover missed or unpaid super.
#As part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of super guarantee to eligible employees regardless of their monthly pay. This measure is not yet law. From 1 July 2022, eligible employees who earn less than $450 per month will be paid super guarantee by their employer if they satisfy the other eligibility requirements.
Or, via Choice of Super form
Things you should know:
- Your employer is not liable for the performance of the super fund you or they nominate
- You should not seek financial advice from your employer unless they are licensed to provide it
- Your employer has two months after you send them the email to action your request
If you’re not already an Australian Ethical member you can join now using the form below and then provide your employer with our details.
|Fund ABN||49 633 667 743|
|Fund name||Australian Ethical Super|
|Fund address||Locked Bag 20013, Melbourne VIC 3001|
|Phone||1800 021 227|
|Electronic service address||https://ws.qvalent.com/services/messaging/ebMS/SuperStream/msh|
Broaden your impact
Did you know the carbon footprint of our share investments is 75% less than traditional share investments?* So having your SG contributions with us helps build your balance and can have a positive impact.
*Carbon intensity (tonnes CO2e per $ revenue) of Australian Ethical's listed share investments (as at 31 Dec 2019) compared to blended benchmark of S&P ASX 200 Index (for Australian and NZ shareholdings) and MSCI World ex Australia Index (for international shareholdings).