When did superannuation start in Australia?
Table of Contents
Compulsory superannuation in Australia began in 1992 under the Superannuation Guarantee, introduced by the Hawke and Keating governments.
But superannuation has roots that go back much further than the modern system. Some large employers set up staff pension schemes in the 1800s.
A well-known early example is the Bank of Australasia staff fund established in 1842. Through the late 19th and early 20th centuries, banks, utilities, and a few big companies created similar funds. They mostly covered long-serving employees in stable roles, not the broader workforce.
Before Super was compulsory, most Australians relied on the government Age Pension, which took shape in the early 1900s and expanded over time. If you worked for an employer with its own fund, you might have had extra support. Many people had nothing beyond the Age Pension, especially if they changed jobs often or worked casually.
Reform gathered pace in the 1970s and 1980s. Unions and the government negotiated changes that added Super to many workplaces. By the mid-1980s, a standard 3 percent contribution showed up in a growing number of workplaces. That laid the groundwork for the national rules that followed.
What year did compulsory super start in Australia, and who introduced it?
Compulsory employer contributions began in 1992 with the Superannuation Guarantee (SG).
The policy was introduced by the Hawke and Keating Labor governments. It grew from the union-government accords of the 1980s and from industrial awards that first embedded a 3 percent contribution.
Why make employer Super contributions mandatory?
The goal was to extend retirement savings to nearly everyone, reduce long-term pressure on the Age Pension, and make savings portable when you change jobs. However, portability only helps if you can track all your accounts. You can read here to locate any lost or inactive super.
If you’re a US expat working in Australia, this history explains why you see Super on your payslip even if you are part-time or casual. It is a universal system now, built on the SG introduced in 1992.
Superannuation & US taxes can be tricky.
Contact us for help.
How did the super guarantee rate evolve from 3% to today’s 12%?
Australia’s Superannuation Guarantee (SG) began at 3% in 1992 and stepped up over time to 12% from 1 July 2025. In between, there were pauses and smaller increments, but the direction stayed the same:
|
Start date |
SG rate |
|
1 July 1992 |
3% |
|
1 July 1995 |
5% |
|
1 July 1998 |
7% |
|
1 July 2000 |
8% |
|
1 July 2002 |
9% |
|
1 July 2013 |
9.25% |
|
1 July 2014 |
9.5% |
|
1 July 2021 |
10% |
|
1 July 2022 |
10.5% |
|
1 July 2023 |
11% |
|
1 July 2024 |
11.5% |
|
1 July 2025 |
12% |
When did casual and part-time workers get super?
Since 1 July 2022, all casual and part-time workers receive super on eligible earnings, even if they earn less than AU$450 per month. From that date, low-paid casual and part-time workers could receive Super on eligible earnings even if they earned under that previous monthly minimum.
The same statutory rate applies to full-time, part-time, and casual staff. For workers under 18, SG applies in weeks they work more than 30 hours.
- Multiple jobs: Each employer pays SG on the ordinary time earnings (OTE) they pay you. Having several small roles doesn’t turn Super off.
- Short engagements or probation: If you’re eligible, SG starts from day one. Probation doesn’t delay contributions.
- Under 18s: Super applies in any week you work over 30 hours.
- Contractors paid mainly for labour: If you’re paid primarily for your personal labour or skills, you can be treated like an employee for SG even if you invoice with an ABN.
- Overtime-heavy rosters: Most overtime isn’t OTE. The SG rate is the same, but it’s applied to OTE only, not every dollar on the payslip.
FAQs
Were self-employed people ever required to pay compulsory super?
No. SG doesn’t apply to sole traders/partners for their own pay (unless they pay themselves wages through a company), but they can make voluntary, deductible contributions and must pay SG for any employees they hire.
What’s “MySuper” and why was it introduced?
What is “stapled super,” and when did it start?
What is SuperStream?
Did super exist before the 1992 SG law?
