Why the Superannuation Rate Increase Affects Your Loss of Earnings Claim
- DB Forensic
- May 11
- 3 min read
When someone is injured and can no longer work, the financial impact goes well beyond their take-home pay.
One component that is often underestimated, or missed entirely, is the loss of superannuation contributions. This is money an employer would have paid on top of wages, and it forms part of the overall economic loss.
With the superannuation guarantee rate now at its highest level in Australian history, getting this right has never been more important.
How the Superannuation Guarantee Works
Under Australian law, employers are required to make superannuation contributions on behalf of their employees. This obligation is known as the Superannuation Guarantee.
The rate is expressed as a percentage of ordinary time earnings. Over the past several years, that rate has increased progressively:
9.50% applied through to 30 June 2021
10.00% from 1 July 2021
10.50% from 1 July 2022
11.00% from 1 July 2023
11.50% from 1 July 2024
12.00% from 1 July 2025, continuing onwards
This is not a minor change. For a plaintiff earning the average weekly wage, the move from 9.5% to 12% represents a meaningful increase in the value of the superannuation component of their loss.
Why This Matters in a Compensation Claim
When a forensic accountant prepares an economic loss report, they typically assess two categories of loss.
The first is past loss of earnings, which covers the period from the date of injury up to the date of the assessment. The second is future loss of earnings, which projects forward over the plaintiff's expected working life.
Superannuation must be considered in both.
For past loss, the correct guarantee rate must be applied to each year of the loss period. This means using different rates depending on when the loss occurred. Using a single flat rate across the entire period will produce an incorrect result.
For future loss, the current rate of 12% applies and is expected to remain at that level. This matters because future loss periods can extend for decades in serious injury matters, and superannuation can compound into a substantial sum over that time.
The Numbers in Practice
To illustrate the impact, consider a plaintiff who earns $1,500 per week in gross wages.
At a 9.5% superannuation rate, the employer's weekly super contribution would be $142.50.
At 12%, that same contribution rises to $180.00 per week.
Over a projected future working period of, say, 25 years, and using a standard present value multiplier at a 5% discount rate, this difference in the weekly super amount translates to a difference of several thousand dollars in the total claim.
In higher-income matters, or in cases involving longer future loss periods, the gap is larger still.
Common Errors to Watch For
Even in well-prepared reports, errors in the superannuation component are not uncommon.
Mistakes typically arise when:
A single historical rate is applied across all years rather than the correct rate for each period
The post-July 2025 rate of 12% is not applied to future loss projections
Superannuation is calculated on gross wages without considering whether the plaintiff was casual, part-time, or subject to an earnings cap
The super component is simply omitted from the future loss calculation
Each of these errors understates the plaintiff's true loss. In contested matters, they can also attract scrutiny from the opposing expert.
How DB Forensic Approaches This
At DB Forensic, superannuation is treated as a distinct and carefully calculated component of every economic loss report.
We apply the correct guarantee rate to each relevant period, cross-reference the applicable earnings data, and clearly set out the superannuation loss as a separate line item so that it is transparent and easy to understand.
Where earnings are close to or above the statutory cap under the Civil Liability Act or Motor Accidents legislation, we also consider how that cap affects the super calculation.
Getting the superannuation component right is not complicated, but it does require attention to detail and current knowledge of the rates in force across each loss period.
Want to Make Sure Your Economic Loss Report Is Complete
If you are preparing an economic loss assessment or reviewing an existing report, it is worth checking that the superannuation component has been correctly calculated using current rates.
DB Forensic prepares and reviews economic loss reports for personal injury matters, workers compensation claims, and family law proceedings across New South Wales.
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