Superannuation Guarantee contributions rate and rules

In 2024–25, the SG contribution rate is 11.5% of your ordinary time earnings (OTE) and is paid on top of your wages or salary.

Your OTE is usually the amount you earn for your ordinary hours of work and includes commissions, shift loadings and allowances, bonuses, and any over-award payments. It does not include any overtime payments. For more detailed information about what payments are included in OTE, see the ATO’s website.

Awards and agreements

Payment type	Salary or wages	Ordinary time earnings (OTE)
Overtime hours: Award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates	Yes	No
Overtime hours: Agreement prevails over award	Yes	No
Agreement supplanting award removes distinction between ordinary hours and other hours	Yes: All hours worked	Yes: All hours worked
No ordinary hours of work stipulated	Yes: All hours worked	Yes: All hours worked
Casual employee: Shift loadings	Yes	Yes
Casual employee: Overtime payments	Yes	No
Casual employee whose hours are paid at overtime rates due to a ‘bandwidth’ clause	Yes	No
Piece-rates: No ordinary hours of work stipulated	Yes	Yes
Overtime component of earnings based on hourly-driving-rate method stipulated in award	Yes	No

Source: ATO checklist of salary/wages and OTE

To check you are being paid the right amount of SG, the ATO also has an online tool you can use. You simply enter the time period you want to check plus your OTE for each quarter in that period. The tool then calculates how much super your employer should have paid into your super account.

For employees with non-standard employment arrangements, this area can be quite complex. If you fall into this category, it can be worth checking with the ATO on 13 10 20 or using the ATO’s information checklist if you think your employer is not paying the right amount of SG based on various wage or salary payments you receive.

Is there a limit on the SG contribution I can receive?

SG is paid on your OTE up to a limit called the maximum super contribution base (MSCB). If you earn above that amount in a particular quarter, your employer does not have to make SG contributions for the part of your earnings over the limit.

The MSCB for 2024–25 is $65,070 per quarter ($260,280 per year), which equals a maximum SG contribution by your employer of $7,483.05 per quarter ($29,932.20 per 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 ($30,000 in 2024–25).

To be eligible to opt out, you must have more than one employer 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 four quarters within a 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 quarters 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 each quarter. It’s important to note your application must be lodged at least 60 days before the start of the next quarter.

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.

Once concessional contributions enter your super account, they are taxed at the special low rate of 15%. 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 strict 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 2024–25 is $30,000.

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.