How Much Super Does Your Employer Pay?
The superannuation guarantee rate is 12%, paid on top of your earnings. Since Payday Super commenced on 1 July 2026, employers must pay it every payday rather than quarterly, and the contribution must be received by your fund within 7 business days of each payday (20 business days for a new employee or a first contribution to a new fund).
The SG rate increased by 0.5 percentage points each year from 2021 to reach the legislated ceiling of 12% on 1 July 2025, and it stays at 12% for FY2026-27. No further increases are legislated. On a salary of $85,000, the 12% SG adds $10,200 per year to your super balance. The previous rate of 11.5% applied during FY2024-25.
SG Rate History Table (FY2021-22 to FY2026-27)
| Financial Year | Required SG Rate | Annual SG on $85,000 Salary |
|---|---|---|
| 1 July 2021 to 30 June 2022 | 10.0% | $8,500 |
| 1 July 2022 to 30 June 2023 | 10.5% | $8,925 |
| 1 July 2023 to 30 June 2024 | 11.0% | $9,350 |
| 1 July 2024 to 30 June 2025 | 11.5% | $9,775 |
| 1 July 2025 to 30 June 2026 | 12.0% | $10,200 |
| 1 July 2026 to 30 June 2027 (current) | 12.0% | $10,200 |
Since 1 July 2026 the SG is calculated on "qualifying earnings", not total earnings. Qualifying earnings are the old ordinary time earnings (OTE) base with a single addition: the ATO says the only additional payment type is commissions for work done entirely outside ordinary hours. Overtime, expense reimbursements, and termination payouts remain excluded. The distinction matters most for workers with significant overtime hours, so use the Overtime Pay Calculator to separate ordinary and overtime components, and see our Payday Super guide for how the per-pay rules work.
What Is Superannuation?
Superannuation is Australia's compulsory retirement savings system, and every employer must pay 12% of an employee's qualifying earnings into a complying super fund for the 2026-27 financial year. Since 1 July 2026, that money must be paid every payday rather than quarterly.
Commonly called "super," the system was introduced under the Superannuation Guarantee (Administration) Act 1992 by the Keating Government. Employers pay contributions on top of gross salary, and the money is invested by the fund across asset classes including Australian equities, international shares, fixed interest, and property. The balance grows through a combination of employer contributions, voluntary contributions, and investment returns until the member reaches preservation age and retires.
Concessional contributions (employer SG, salary sacrifice and personal contributions you claim as a tax deduction) are taxed at a flat 15% inside the fund instead of at your marginal rate. Salary sacrifice and deductible personal contributions also lower your taxable income, so they cut the income tax you pay today. Employer SG is paid on top of your salary and does not change your income tax. Above $45,000 your marginal rate is 30%, 37% or 45%, plus the 2% Medicare levy. In the 15% bracket the income tax rate is the same as the 15% contributions tax, so there is no rate gap. Use our Income Tax Calculator to see how your marginal rate compares to the 15% super rate.
Interactive Calculation
Want to see exactly how much super your employer must pay you based on your current salary?
Use our Superannuation CalculatorWho Has to Pay Super?
Every Australian employer must pay the 12% SG for all eligible employees regardless of earnings level or employment type. Hours worked matter for two groups only: under 18s and private or domestic workers, who are eligible in a week where they work more than 30 hours for you. The previous $450-per-month minimum threshold was abolished on 1 July 2022, so low-income and part-time workers now receive super too.
- Full-time, part-time, and casual workers: Entitled to super on every dollar of qualifying earnings, with no minimum monthly income requirement.
- Under 18s: Entitled to super if they work more than 30 hours in a week for that employer.
- Contractors: If you are hired wholly or principally for your labour (even with an ABN), you are an employee for superannuation purposes and entitled to the SG. Use our Contractor vs Employee Calculator to compare the financial difference.
- Temporary residents and working holiday makers: Entitled to SG on the same basis as permanent residents. Super is payable from the first dollar earned. See our Working Holiday Tax Guide for the tax treatment of departing temporary residents.
- Company directors: Entitled to SG. The ATO lists directors' fees as ordinary time earnings, so they count as qualifying earnings and attract super.
Self-employed sole traders and partners in a partnership have no obligation to pay themselves super, though they can make voluntary contributions and claim a tax deduction. Private or domestic workers (such as a nanny or housekeeper) get no SG for a week in which they work 30 hours or less for you.
What Counts as Qualifying Earnings for Super?
Employers calculate the 12% SG on qualifying earnings (QE). QE is built on ordinary time earnings (OTE), the amount an employee earns for their ordinary hours of work, and the ATO confirms there are no changes to what counts as OTE under Payday Super. It includes base salary, most allowances, shift loadings, and leave taken, but excludes overtime and termination payments.
Included in QE (Super Paid)
- Base salary and wages
- Shift loading and casual loading
- Ordinary commissions
- Performance, Christmas, sign-on and referral bonuses
- Annual leave loading other than the lost-overtime kind
- Task allowances for skill, adverse conditions or retention
- Salary sacrificed amounts that would otherwise be qualifying earnings
- Commissions for work done entirely outside ordinary hours (new from 1 July 2026)
Excluded from QE (No Super)
- Overtime, where ordinary hours are clearly identified in an award or agreement
- Bonuses solely for work performed entirely outside ordinary hours
- Annual leave loading linked to a lost opportunity to work overtime
- Expense allowances expected to be fully expended
- Redundancy payouts
- Unused annual leave paid out on termination
The distinction between OTE and non-OTE payments is governed by Superannuation Guarantee Ruling SGR 2009/2 from the ATO. A common mistake is assuming Payday Super extended super to overtime and bonuses generally, but it did not. Performance, Christmas, sign-on and referral bonuses already attracted super and still do; a bonus paid solely for work performed entirely outside ordinary hours still does not. Use the Bonus Tax Calculator to calculate how a bonus is taxed and whether it attracts super.
What Are the Super Contribution Caps?
The ATO caps super contributions each financial year. The concessional (before-tax) cap is $32,500 and the non-concessional (after-tax) cap is $130,000 for FY2026-27. Exceeding either cap triggers additional tax on the excess amount.
| Cap Type | Annual Limit (FY2026-27) | Tax Rate Inside Super | Penalty If Exceeded |
|---|---|---|---|
| Concessional | $32,500 | 15% | Excess added to assessable income, taxed at marginal rate |
| Non-concessional | $130,000 | 0% (already taxed) | 47% tax on excess, or withdraw and pay marginal rate |
| Bring-forward (non-concessional) | $390,000 over 3 years | 0% | Depends on your total super balance at 30 June of the previous year |
Concessional Contributions Cap ($32,500)
The $32,500 concessional cap includes three contribution types: employer SG payments, salary sacrifice amounts, and personal contributions for which you claim a tax deduction. All three count toward the single cap. On an $85,000 salary, the employer SG of $10,200 leaves $22,300 of unused cap space for voluntary concessional contributions. Our concessional contributions cap guide has a calculator for your own salary, including carry-forward.
Concessional contributions are taxed at 15% within the super fund rather than your marginal tax rate. Unused concessional cap amounts carry forward for up to 5 years, provided your total super balance is below $500,000 at 30 June of the previous financial year. This "carry-forward" rule lets you contribute large lump sums in a single year, for example after receiving a bonus or inheritance.
Non-Concessional Contributions Cap ($130,000)
Non-concessional contributions are amounts you deposit from after-tax income. These contributions attract no additional tax when entering the fund because income tax has already been paid. The annual cap is $130,000.
The "bring-forward" rule allows contributors under 75 to use up to 3 years of non-concessional cap in a single year (up to $390,000), provided total super balance is below $1.84 million at 30 June of the prior year. A balance from $1.84 million to below $1.97 million allows 2 years ($260,000); from $1.97 million there is no bring-forward, and at $2.1 million or more the non-concessional cap is nil. Exceeding the non-concessional cap results in the excess being taxed at 47% (top marginal rate plus Medicare Levy), or you can elect to withdraw the excess and pay tax at your marginal rate plus an earnings component.
Division 293 Tax for High-Income Earners
"Division 293" imposes an additional 15% tax on concessional super contributions for individuals with income plus concessional contributions exceeding $250,000. This brings the tax on those concessional contributions to 30% for people above the threshold, so super gives them a smaller tax advantage. The ATO issues Division 293 assessments automatically after tax returns are lodged. You can pay the assessment from your super fund or from personal funds.
Division 296 Tax on Large Super Balances
From 1 July 2026, Division 296 tax applies at 15% to the share of super earnings attributable to a total super balance above $3 million, with an additional 10% on the share above $10 million (thresholds for 2026-27). It affects only very large balances; the ATO will issue the first assessments in the later half of 2027-28.
How Is Super Taxed?
Super is taxed at 3 distinct stages: contributions, investment earnings, and withdrawals. The combined tax treatment makes super a lower-tax way to save for retirement than saving outside it, with 15% tax on concessional contributions and fund earnings in accumulation, compared to marginal rates up to 47% including the Medicare levy.
| Stage | Tax Rate | Details |
|---|---|---|
| Concessional contributions | 15% | Employer SG, salary sacrifice, and deductible personal contributions. Division 293 adds 15% above $250,000 income. |
| Non-concessional contributions | 0% | After-tax money entering super. Already taxed at your marginal rate. |
| Investment earnings (accumulation) | 15% | Fund earnings taxed at 15%. Capital gains on assets held 12+ months taxed at 10% (one-third CGT discount). |
| Investment earnings (pension phase) | 0% | Earnings on assets supporting income streams up to the $2.1 million transfer balance cap are tax-free. |
| Withdrawals (age 60+) | 0% | Lump sums and income streams from a taxed fund are entirely tax-free from age 60. |
| Withdrawals (preservation age to 59) | 0% up to low-rate cap | First $260,000 (low rate cap, 2026-27) of the taxed element is tax-free. Excess taxed at 15% plus Medicare Levy. |
The "Transfer Balance Cap" limits how much super you can move into the tax-free pension phase. The general cap is $2.1 million for FY2026-27, up from $2 million in FY2025-26, and is indexed in $100,000 increments in line with CPI. Amounts above this cap remain in the accumulation phase where earnings are taxed at 15%. Use our Take-Home Pay Calculator to model your total after-tax position.
Is There a Maximum Super Contribution Base?
With Payday Super from 1 July 2026, the maximum super contribution base is an annual figure: $270,830 for FY2026-27 (previously $62,500 per quarter). Employers are not legally required to pay the 12% SG on earnings above this threshold.
The maximum SG your employer must pay for the year is $32,500 (12% × $270,830). This cap affects employees earning above $270,830 per year. Some employers voluntarily pay super on total salary including amounts above the maximum contribution base as part of an executive remuneration package.
Until 30 June 2026 it was a quarterly figure indexed to Average Weekly Ordinary Time Earnings (AWOTE) ($62,500 per quarter in FY2025-26). From 1 July 2026 the ATO works it out from the concessional contributions cap divided by the SG rate ($32,500 ÷ 12%), so it moves when the cap or the SG rate moves. Use our Superannuation Calculator to determine whether the cap applies to your salary.
Step-by-Step: How to Check Your Super Balance
Every Australian with a super account can check their balance through myGov linked to the ATO, through their super fund's app or website, or by calling the fund directly. The ATO receives account information from every fund, so myGov lists all your super accounts together, including lost super.
- Log in to myGov at my.gov.au using your credentials and link the ATO service if you have not already done so.
- Navigate to "Super" in the ATO section. The dashboard displays all super accounts the ATO knows about, including active accounts, lost super, and unclaimed money.
- Review your balances. Each account shows the fund name, ABN, account number, last reported balance, and date last updated. Under Payday Super, each contribution must reach your fund within 7 business days of payday, so gaps show up quickly.
- Consolidate accounts. If you have multiple accounts, select the accounts you want to roll over and transfer them into a single fund. Consolidation avoids paying duplicate insurance premiums and administration fees on each account.
- Check for unpaid super. Compare your payslips against the "Contributions" section. If employer SG payments are missing or short, report it with the ATO's "Report unpaid super contributions from my employer" online tool.
Employers must report super contributions through Single Touch Payroll (STP), which feeds directly into the ATO's system. Compare each payslip with your fund's contribution history to confirm the SG arrives on time and at the correct rate of 12%.
Worked Example: Super on an $85,000 Salary
An employee earning $85,000 per year in base salary (base + super structure) receives SG contributions of $10,200 for FY2026-27, bringing the total package to $95,200. The table below breaks down the SG, the contributions tax, the remaining concessional cap, income tax, the Medicare Levy and take-home pay on this salary.
| Component | Amount | Calculation |
|---|---|---|
| Gross salary | $85,000 | Base annual salary |
| Employer SG (12%) | $10,200 | $85,000 × 12% |
| Total package | $95,200 | $85,000 + $10,200 |
| Tax on SG inside super (15%) | $1,530 | $10,200 × 15% |
| Net SG added to super balance | $8,670 | $10,200 − $1,530 |
| Remaining concessional cap space | $22,300 | $32,500 − $10,200 |
| Income tax on $85,000 salary (FY2026-27 rates) | $16,020 | $4,020 + ($85,000 − $45,000) × 30% |
| Medicare Levy (2%) | $1,700 | $85,000 × 2% |
| Take-home pay (approx.) | $67,280 | $85,000 − $16,020 − $1,700 |
If this employee salary sacrifices $5,000 into super, taxable income drops to $80,000. Income tax falls by $1,500 (the $5,000 at the 30% marginal rate) and the Medicare levy falls by $100 (2%). The $5,000 is taxed at 15% inside super ($750), so the net tax saving is $850. Read the full mechanics in our Salary Sacrifice Guide.
How Does Salary Sacrifice Into Super Work?
Salary sacrifice redirects a portion of your pre-tax salary into your super fund, where it is taxed at 15% instead of your marginal rate. Counting income tax and the 2% Medicare levy, each $1,000 you sacrifice saves $170 in the 30% bracket, rising to $320 in the 45% bracket, so the saving grows with your marginal rate. In the 15% bracket the income tax rate is the same as the 15% contributions tax, so salary sacrifice gives no income tax rate saving there. Above the $250,000 Division 293 threshold, the contributions tax rises to 30% and the saving shrinks.
Salary sacrifice contributions count toward the $32,500 concessional cap alongside employer SG payments. Exceeding the cap triggers additional tax at your marginal rate on the excess amount. Before arranging salary sacrifice with your employer, calculate your available cap space by subtracting your annual SG from $32,500, or use the concessional cap calculator.
Worked Example: Salary Sacrifice on $100,000
An employee earning $100,000 receives 12% SG ($12,000), leaving $20,500 of concessional cap space ($32,500 − $12,000). If they salary sacrifice $10,000:
- Taxable income drops from $100,000 to $90,000
- Income tax saving at the 30% marginal rate: $3,000, plus $200 less Medicare levy (2%)
- The $10,000 is taxed at 15% inside super: $1,500 contributions tax
- Net benefit: $1,700 more in super than you would keep by taking the income as salary
- Take-home pay falls by $6,800 ($10,000 minus the $3,200 tax and levy saving)
Use the Salary Sacrifice Calculator to model your own scenario with exact dollar amounts.
What Changed for Super in FY2026-27?
The SG rate stayed at 12%, but how and when it is paid changed. Payday Super commenced on 1 July 2026: employers now pay SG with each pay run, calculated on qualifying earnings, and the contribution must be received by your fund within 7 business days of payday. The contribution caps and the transfer balance cap were also indexed.
| Change | FY2025-26 (Previous) | FY2026-27 (Current) |
|---|---|---|
| SG rate | 12% | 12% (unchanged) |
| When SG is paid | Quarterly, 28 days after quarter end | Every payday; received within 7 business days (20 for a new employee or new fund) |
| SG calculated on | Ordinary time earnings | Qualifying earnings |
| Maximum contribution base | $62,500 per quarter | $270,830 per year |
| Concessional cap | $30,000 | $32,500 |
| Non-concessional cap | $120,000 | $130,000 |
| Bring-forward (3 years) | $360,000 | $390,000 |
| Transfer balance cap | $2 million | $2.1 million |
| Low rate cap | $260,000 | $260,000 (unchanged) |
| Division 293 threshold | $250,000 | $250,000 (unchanged) |
| Division 296 (balances over $3 million) | Did not apply | Applies from 1 July 2026 |
| Super guarantee charge | Not tax-deductible | Tax-deductible |
For employees on a "base + super" structure, Payday Super changes when super arrives, not how much. On a $85,000 salary the employer still pays $10,200 for the year, but a fortnightly-paid employee should now see a contribution after every pay rather than four times a year. The higher $32,500 concessional cap gives $2,500 more room for salary sacrifice. Separately, the second income tax rate fell from 16% to 15% on 1 July 2026. Taxable income from $18,201 to $45,000 is now taxed at the lower rate, a saving of up to $268 a year (see tax brackets).
What Are the Different Types of Super Funds?
Australian super funds fall into 5 main categories: industry funds, retail funds, corporate funds, public sector funds, and self-managed super funds (SMSFs). Each type differs in fee structures, investment options, insurance offerings, and governance.
| Fund Type | Typical Fees (p.a.) | Investment Options | Best Suited For |
|---|---|---|---|
| Industry fund | 0.5% to 1.0% | Pre-mixed and single-sector options | Most employees; lower fees, profit-to-member |
| Retail fund | 0.8% to 1.5% | Wide range including managed funds and shares | Active investors wanting specific fund managers |
| Corporate fund | 0.3% to 0.7% | Tailored options negotiated by employer | Employees of large corporations with in-house funds |
| Public sector fund | 0.3% to 0.6% | Pre-mixed options, some defined benefit schemes | Federal, state, and local government employees |
| SMSF | $2,000 to $5,000 fixed | Direct shares, property, crypto, collectibles | Balances above $500K; experienced investors |
Stapled Super Funds
Since 1 November 2021, when you start a new job without nominating a fund, your employer must request your "stapled fund" details from the ATO. Your stapled fund is your existing super account, which follows you from job to job so you do not open a duplicate account that charges its own fees.
Default Funds (MySuper)
If you have no existing fund and do not nominate one, your employer opens an account in their default fund. All default funds must offer a "MySuper" product, a simple, low-cost option designed for members who do not make active investment choices. MySuper products are subject to annual performance testing by APRA; funds that fail 2 consecutive years are closed to new members.
Comparing Funds
When choosing a fund, compare investment fees, insurance premiums, investment performance over 5 to 10 year periods, and available tools such as salary sacrifice tracking and retirement projections. The ATO's YourSuper comparison tool at ato.gov.au/yoursuper compares MySuper products on fees and net returns.
What Are the Key Super Dates and Deadlines?
Employers must pay SG contributions every payday, with the money received by the fund within 7 business days. Missing that deadline triggers the Superannuation Guarantee Charge (SGC), which has 4 parts: the shortfall, notional earnings at the general interest charge rate compounded daily, an administrative uplift of up to 60%, and a choice loading if you did not follow the choice of fund rules. A voluntary disclosure within 30 days of payday cuts the uplift to 0% if the ATO has not made its own SGC assessment against you in the 2 years before that payday, and to 20% if it has. Unlike the old quarterly charge, the SGC is now tax-deductible.
| Earnings paid | Rule | SG Payment Due |
|---|---|---|
| From 1 July 2026 | Payday Super | Received by the fund within 7 business days of each payday |
| New employee, or first contribution to a new fund | Payday Super | Within 20 business days of payday |
| 1 April to 30 June 2026 (last quarter) | Old quarterly system | 28 July 2026 (SGC statement for a late payment due 28 August 2026) |
Other super dates for FY2026-27: 30 June 2027 is the last day for a personal deductible contribution to be received by your fund for the year. Your total super balance at 30 June 2026 decides whether you can use carry-forward concessional cap amounts and the bring-forward rule this year. 31 October 2027 is the lodgement due date for your 2026-27 tax return if you lodge yourself (later if you use a registered tax agent). The Australian Tax Calendar lists all key dates across the financial year, and our Payday Super guide explains the per-pay deadlines in detail.
Frequently Asked Questions
How this calculator works▼
Information on this page is based on current ATO legislation and Superannuation Guarantee Administration Act parameters for the 2026-27 Australian financial year, including Payday Super from 1 July 2026. Caps and thresholds were checked against the ATO's key superannuation rates and thresholds pages on 23 September 2026. Federal super rules change often, so check each figure against the ATO sources listed below.
Sources & References
- 1Super Guarantee percentage, Australian Taxation Office
- 2Super contribution caps, Australian Taxation Office
- 3Division 293 tax, Australian Taxation Office
- 4Transfer balance cap, Australian Taxation Office
- 5Non-concessional contributions cap and bring-forward, Australian Taxation Office
- 6Payments from super (low rate cap), Australian Taxation Office
- 7Division 296 tax on large super balances, Australian Taxation Office
- 8About Payday Super, Australian Taxation Office
- 9Super fund types and MySuper, Australian Taxation Office
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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