In this guide
- What is the Superannuation Guarantee?
- What is the current Superannuation Guarantee rate?
- Am I eligible for SG contributions?
- How is my SG contribution calculated?
- Is there a limit on the SG contribution I can receive?
- What happens if I have several jobs?
- How are SG contributions taxed?
- Watch your annual contributions limit
- Get more guides like this with a free account
As employees, most of us see our employer’s Superannuation Guarantee (SG) contributions in our super account and rarely give it much thought.
To help you understand these contributions a little better, read SuperGuide’s simple explanation of the SG and what it means for your retirement savings.
What is the Superannuation Guarantee?
The most common type of contribution regularly going into your super account is likely to be the Superannuation Guarantee – or SG for short – which is the contribution your employer (whether large or small) is required to make into a super fund on your behalf.
The SG is part of the remuneration you receive from your employer. The amount is a percentage of your gross ordinary time earnings. The percentage is set by the Australian Government and has changed over time.
What is the current Superannuation Guarantee rate?
The current percentage rate for Superannuation Guarantee contribution payments by your employer is 12%. Some past history of the rate is shown in the table below.
Superannuation Guarantee rate (2002 to 2026 and beyond)
| Period | Super Guarantee rate |
|---|---|
| 1 July 2002 – 30 June 2013 | 9% |
| 1 July 2013 – 30 June 2014 | 9.25% |
| 1 July 2014 – 30 June 2021 | 9.5% |
| 1 July 2021 – 30 June 2022 | 10% |
| 1 July 2022 – 30 June 2023 | 10.5% |
| 1 July 2023 – 30 June 2024 | 11% |
| 1 July 2024 – 30 June 2025 | 11.5% |
| 1 July 2025 – onwards | 12% |
If your employer doesn’t pay the required rate of SG into your super account by the due date after each payday, they have to pay a Superannuation Guarantee Charge (SGC) to the ATO. The ATO uses data from single touch payroll and super funds to track your entitlements, and sends an assessment to your employer if their contributions are late or not paid. The SGC includes interest and an administration fee, plus any SG that remains unpaid at the time of the ATO’s assessment.
Am I eligible for SG contributions?
Your employer is required to make quarterly SG contributions to your super fund if you are an eligible employee, regardless of how much you are paid. The SG contribution amount is calculated using your qualifying earnings (see section below).
You are eligible for SG payments whether you are a full-time, part-time or casual employee.
Employees aged under 18, or those classified as a private or domestic worker (like a nanny), must work for their employer more than 30 hours per week to qualify for SG payments.
Employees who are a company director, a family member working in a business, or employees who are receiving super pension, annuity or transition to retirement payments are also eligible for SG payments.
If you are self-employed as a sole trader or in a partnership, you are not required to pay SG for yourself.
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Find out moreTemporary residents are also entitled to receive SG payments into their super account.
Your employer is not required to make SG contributions if you are a non-Australian resident and are paid to do work outside Australia, are an Australian resident but paid by a non-resident employer for work done outside the country, a senior foreign executive on certain visas, or temporarily working in Australia for an overseas employer and are covered by super provisions in a bilateral social security agreement.
How is my SG contribution calculated?
The SG contribution rate is 12% of your qualifying earnings (QE) and is paid on top of your wages or salary.
Your QE is usually the amount you earn for your ordinary hours of work and includes all commissions, shift loadings and allowances, bonuses, and any over-award payments. It does not include any overtime payments.
For employees with non-standard employment arrangements, this area can be quite complex. If you fall into this category, it can be worth checking the detailed information about the payments that are included in QE, on the ATO’s website.
Is there a limit on the SG contribution I can receive?
SG is paid on your QE up to a limit called the maximum super contribution base (MSCB). If you earn above that amount in a year, your employer does not have to make SG contributions for the part of your earnings over the limit.
The MSCB for 2026–27 is $270,830, which equals a maximum SG contribution by your employer of $32,499.60. When your employer’s contributions for the financial year reach this amount, they can stop making SG contributions for you until the following financial year.
What happens if I have several jobs?
If you have multiple employers you can apply to opt out of receiving SG contributions from some of your employers so you don’t unintentionally go over the annual concessional (before-tax) contributions cap or limit ($32,500 in 2026–27).
To be eligible to opt out, you must have more than one employer during the financial year (including if you’re changing jobs) and expect the total of all your employers’ mandated concessional contributions to exceed your concessional cap for the financial year.
Employees in this situation can submit a Super Guarantee opt out for high income earners with multiple employers form to the ATO. You then receive an SG employer shortfall exemption certificate to give to one or more of your employers to release them from their SG obligation for up to the full financial year. This means they will not be liable for the Super Guarantee Charge (SGC) if they do not make SG contributions for you in the period covered by the shortfall exemption certificate.
Your employer can’t apply for an exemption on your behalf and you must receive SG contributions from at least one of your employers during the financial year. It’s important to note your application must be lodged at least 30 days before the start of the period you want the exemption to start.
How are SG contributions taxed?
SG contributions going into your super account receive a concessional tax treatment because they are made from money that has not been taxed, so they are before tax. That’s why SG contributions are classed as concessional (before-tax) contributions.
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Find out moreOnce concessional contributions enter your super account, they are taxed at the special low rate of 15%. If your SG is paid to an untaxed (constitutionally protected) fund, no tax is deducted from your concessional contributions. Untaxed funds are uncommon. For many people the tax on concessional contributions is lower than the marginal tax rate they pay on their normal income.
Watch your annual contributions limit
As there are tax benefits to holding retirement savings in your super account, the government imposes annual caps on concessional (before-tax) contributions like SG contributions.
The annual concessional contributions cap is indexed in line with average weekly ordinary time earnings (AWOTE) in increments of $2,500 (rounded down). The annual concessional contributions cap for 2026–27 is $32,500.
If you go over your cap amount, you must pay extra tax. The cap applies to the total contributed to all your super accounts across different super funds.
When monitoring your concessional contributions like the SG for the financial year, remember super contributions are not counted when the payment is sent by your employer, they only count once the payment is received by your super fund.
If you have a salary-sacrifice arrangement with your employer, remember that your salary sacrifice may not arrive in your fund in the same financial year it was deducted from your pay. Check the transactions in your super account to see when amounts generally arrive and track your contributions carefully if you are close to the cap.
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