Key points
- The Super Guarantee rate is 12% and has been since 1 July 2025. It is the legislated maximum.
- From 1 July 2026, employers must pay SG on each payday rather than quarterly. The regime is called Payday Super.
- The earnings base changes at the same time: SG is calculated on Qualifying Earnings (QE), not Ordinary Time Earnings. QE covers everything OTE covered, plus all commissions (including commissions for work done entirely outside ordinary hours) and salary-sacrifice contributions.
- Employer SG payments must reach the fund within 7 business days of paying the employee.
- The concessional contributions cap stays at $30,000 for 2025-26 and the Maximum Superannuation Contribution Base at $62,500 per quarter ($250,000 pa).
Australia’s Super Guarantee (SG) rate reached its legislated maximum of 12% on 1 July 2025. The rate itself is stable. What changes from 1 July 2026 is the cadence and the base: SG is paid on every payday, not quarterly, and is calculated on a broader definition of pay called Qualifying Earnings. Here’s the current rate, the full history, and what Payday Super means for salary sacrifice, take-home pay and employer payroll.
Current super rate in Australia
The current superannuation rate in Australia is 12%, effective from 1 July 2025. Employers must pay this on top of eligible wages. It’s the Super Guarantee (SG), the compulsory super rate that applies to most workers, and it now sits at its legislated maximum, so it isn’t scheduled to rise again. For the 2024-25 year the super rate was 11.5%.
Until 30 June 2026, SG is calculated on Ordinary Time Earnings and paid quarterly. From 1 July 2026, it’s calculated on Qualifying Earnings and paid every payday. The 12% rate itself doesn’t move.
What is the Super Guarantee?
The Super Guarantee is the minimum percentage of your ordinary time earnings that your employer must contribute to your nominated superannuation fund. It applies to most employees aged 18 or over (and those under 18 who work more than 30 hours per week), and is paid at least quarterly.
The SG rate is set by legislation and has been increasing gradually since it was introduced at 3% in 1992. The 12% rate from 1 July 2025 represents the completion of a schedule legislated under the Superannuation Guarantee (Administration) Act 1992.
SG rate history: all years
| Financial Year | SG Rate | Earnings base | Payment cadence |
|---|---|---|---|
| 2026-27 onwards | 12.00% | Qualifying Earnings | Every payday (Payday Super) |
| 2025-26 | 12.00% | Ordinary Time Earnings | Quarterly |
| 2024-25 | 11.50% | OTE | Quarterly |
| 2023-24 | 11.00% | OTE | Quarterly |
| 2022-23 | 10.50% | OTE | Quarterly |
| 2021-22 | 10.00% | OTE | Quarterly |
| 2020-21 | 9.50% | OTE | Quarterly |
| 2014-15 to 2019-20 | 9.50% (paused) | OTE | Quarterly |
| 2013-14 | 9.25% | OTE | Quarterly |
| 2002-03 to 2012-13 | 9.00% | OTE | Quarterly |
| 1999-2002 | 8.00% | OTE | Quarterly |
| 1998-99 | 7.00% | OTE | Quarterly |
| 1996-97 to 1997-98 | 6.00% | OTE | Quarterly |
| 1995-96 | 5.00% | OTE | Quarterly |
| 1992-93 to 1994-95 | 3.00-4.00% | OTE | Quarterly |
The rate was paused at 9.5% for six years (2014-15 to 2019-20) before staged increases to 12% resumed. The 12% ceiling itself is the end of the rate-rise schedule. The next major change is the switch to Payday Super and Qualifying Earnings from 1 July 2026, covered below.
Payday Super and Qualifying Earnings from 1 July 2026
The rate stays at 12%. What changes is when and on what.
Cadence: quarterly becomes every payday
Until 30 June 2026 employers pay SG at least quarterly, by the 28th day of the month after each quarter. Under Payday Super, from 1 July 2026 SG must be paid with every wage. The contribution has to reach the employee’s fund, with all the information needed to allocate it, within 7 business days of payday.
That is a real payroll change. Cashflow cycles compress. STP reports carry more data. Late payments show up on the next payday, not three months later.
Base: OTE becomes Qualifying Earnings
The other change is what SG is calculated on. Until 30 June 2026, that’s Ordinary Time Earnings. From 1 July 2026, it’s Qualifying Earnings (QE), a broader definition.
QE keeps everything OTE already covered. It adds:
- All commissions, including commissions for work performed entirely outside ordinary hours (previously outside OTE for many workers)
- Salary-sacrifice contributions are included in the QE base rather than reducing it
Everything in an employee’s OTE calculation up to 30 June 2026 continues to count as QE from 1 July 2026. The list only broadens.
What it means in practice
- Employees on a base-plus-super arrangement with any commission income can expect higher SG from 1 July 2026, because the base SG is calculated on is larger. Salary-sacrificers should recheck their cap headroom.
- Employees on total-package arrangements should confirm with their employer how the switch is being funded, whether take-home moves.
- Employers need payroll software that supports QE and same-payday SG lodgement. Most major payroll providers are updating for it, but manual and legacy systems will need attention before the deadline.
Reporting
From 1 July 2026, STP reporting each payday must include the year-to-date QE amount and the year-to-date SG liability for each employee. The ATO uses those figures to identify late or missing contributions in near real time.
What the 12% milestone means for you
Your take-home pay may be affected
If your employment contract specifies a “package” figure (total cost to employer including super), the SG increase flows through automatically. That means your take-home pay effectively decreases slightly as more of your package is redirected to super. If your salary is expressed as a base figure plus super on top, the increase does not reduce your take-home pay.
Check your employment contract or payslip to confirm which arrangement applies to you.
The concessional contributions cap
SG contributions count toward your concessional contributions cap, which is currently $30,000 per financial year (2025–26). This cap also covers:
- Salary sacrifice contributions
- Personal (tax-deductible) contributions under s290-180 of ITAA 1997
- Employer-paid life and TPD insurance premiums inside super
If your employer’s SG contributions are increasing, you need to recalculate how much room you have left under the cap for salary sacrifice or personal deductible contributions. For a person earning $200,000, SG at 12% equals $24,000, leaving only $6,000 in cap space for other concessional contributions.
If you exceed the concessional cap, the excess is included in your assessable income and taxed at marginal rates (with a 15% tax offset to reflect contributions tax already paid). Our superannuation advisers can help you optimise your contributions strategy before year end.
Maximum Superannuation Contribution Base
The Maximum Superannuation Contribution Base (MSCB) is the quarterly earnings level above which an employer is not required to pay SG contributions. For 2025–26, the MSCB is $62,500 per quarter ($250,000 per annum).
At 12%, SG on $250,000 equals exactly $30,000, the concessional contributions cap. This is no coincidence: the MSCB was recalibrated when the rate reached 12% so that the maximum SG liability aligns precisely with the cap.
If you earn above $250,000 per year, your employer’s SG obligation is capped at $30,000 regardless of your actual earnings. Additional super contributions above this level are entirely voluntary.
What employees should do now
1. Check your contract type. Determine whether your salary is expressed as a base-plus-super or total package arrangement. If the latter, consider whether renegotiation is warranted.
2. Review your salary sacrifice arrangements. If you’re salary sacrificing to maximise the concessional cap, recalculate your optimal sacrifice amount given the higher employer SG. Over-sacrificing beyond $30,000 will trigger excess concessional contributions tax. Speak with our financial planning team to get this right.
3. Run a retirement projection. The SG increase adds meaningful compounding value over time. Use the MoneySmart superannuation calculator or speak with a financial planner to model your projected balance at retirement under the new rate.
4. Consider catch-up contributions. If you have a super balance below $500,000, you may be eligible to carry forward unused concessional cap amounts from prior years (up to five years). This can allow larger contributions in a given year, useful for those who had career breaks or lower earnings periods.
5. Check your fund’s investment options. Now is a good time to review whether your fund’s default investment option continues to suit your age, risk tolerance, and retirement timeline. Members of a self-managed super fund have greater flexibility to tailor this mix.
What employers need to know
Until 30 June 2026 (quarterly regime)
- SG must be paid to a complying super fund at least quarterly, by the 28th day after each quarter end (28 October, 28 January, 28 April, 28 July).
- Calculated at 12% of Ordinary Time Earnings.
- Late or underpaid SG triggers the Superannuation Guarantee Charge (SGC), which is not deductible and attracts interest and admin fees.
From 1 July 2026 (Payday Super)
- SG must reach the fund within 7 business days of each payday. The quarterly cycle ends.
- Calculated at 12% of Qualifying Earnings, which is broader than OTE (includes all commissions and salary sacrifice).
- STP reporting on each payday must include year-to-date QE and year-to-date SG liability per employee.
- Payroll and clearing-house arrangements need to support this cadence before 1 July 2026. Test with your provider well before the switch.
- The $450-per-month SG threshold was removed on 1 July 2022 and stays removed. All eligible employees receive SG regardless of monthly earnings.
Our business advisory team helps employers review payroll obligations and ready their systems for Payday Super.
When SG may not be payable
SG does not apply to every dollar an employer pays. The exact exclusions depend on which regime you’re in.
Under OTE (until 30 June 2026). SG excludes:
- Overtime payments
- Certain allowances (e.g., shift allowance for work beyond ordinary hours)
- Leave loading in some circumstances
- Genuine contractor payments (the ATO applies a substance-over-form test regardless of contract wording)
See the ATO’s OTE guidance for the full list.
Under Qualifying Earnings (from 1 July 2026). The base is broader. Overtime remains outside QE, and the contractor-vs-employee test still applies. The main additions to the SG base are all commissions (including out-of-hours commissions) and salary-sacrifice contributions. See What payments are qualifying earnings for the complete definition.
Frequently asked questions
What is the current superannuation rate in Australia? The current superannuation rate is 12%, effective from 1 July 2025. This is the Super Guarantee (SG), often called the super rate. From 1 July 2026, SG is calculated on Qualifying Earnings and paid every payday. The 12% rate itself doesn’t change.
What is the current Super Guarantee rate in Australia? The current Super Guarantee rate is 12%, effective from 1 July 2025. It’s the legislated maximum. The 2026 Payday Super reform changes the earnings base and the payment cadence, not the rate.
What was the Super Guarantee rate in 2024-25? The SG rate for the 2024-25 financial year (1 July 2024 to 30 June 2025) was 11.5%. It rose to 12% on 1 July 2025 and stays there.
Will the Super Guarantee rate increase beyond 12%? No. There is no legislated increase beyond 12%. Any future change would require new legislation.
What is Payday Super? Payday Super is the regime starting 1 July 2026. Employers must pay SG on every payday rather than quarterly, and the contribution must reach the employee’s fund within 7 business days of payday. The 12% rate is unchanged.
What are Qualifying Earnings? Qualifying Earnings (QE) is the earnings base SG is calculated on from 1 July 2026, replacing Ordinary Time Earnings. QE covers everything OTE covered plus all commissions (including commissions for work performed entirely outside ordinary hours) and salary-sacrifice contributions. Overtime remains excluded.
Does the SG rate affect my salary sacrifice? Yes. SG contributions and salary sacrifice contributions both count toward the $30,000 concessional contributions cap. Higher employer SG reduces your available sacrifice capacity. From 1 July 2026, salary sacrifice also forms part of the QE base your SG is calculated on, so recheck the numbers around the switch.
What is the Super Guarantee rate for contractors? Genuine contractors are generally not entitled to SG. If you’re engaged primarily for your labour rather than to deliver a result, though, the ATO can treat you as an employee for SG purposes regardless of the contract wording.
If you need help reviewing your salary-sacrifice strategy, super fund choice or retirement projection under Payday Super and the QE base, contact the AGS Financial Group team. Our financial planners and accountants coordinate the super, tax and cashflow sides of the change together.