The Superannuation Guarantee (SG) is the name for the contribution your employer makes to your super fund on your behalf.
The current SG contribution rate is 9.5% of your earnings up to a limit called the maximum super contribution base (MSCB). If you earn above that limit in a particular quarter, your employer is not required to make SG contributions for the part of your earnings over the limit.
The MSCB is indexed each year in line with average weekly ordinary time earnings (AWOTE), with the new indexed amount generally announced each February. It does not apply to other mandated contributions, such as super contributions you are paid under an award.
The MSCB for 2019/20 is $55,270 per quarter, which equals a maximum SG contribution of $5,293.40 per quarter. The MSCB amounts for previous years are listed in the table below below:
Maximum super contributions base (MSCB) for 2019/2020 and previous years
|Income year||Income per quarter||Maximum SG contribution per quarter
(SG contribution rate x quarterly income)
The MSCB is a quarterly income figure, so it matches the requirement for your employer to make SG contributions into your super account on a quarterly basis. This can create problems for employees with irregular incomes, however, as if your income is over the MSCB in a particular quarter, the amount of SG your employer is required to pay is capped.
For example, if you earned $65,000 and $55,000 in two quarters in the current financial year (2019/2020), the SG payable by your employer in both quarters would be capped at $5,293.40, despite the different income you received in each quarter.
Learn more about the Superannuation Guarantee in the following SuperGuide articles: