Every payslip in Australia carries a line most people barely glance at — the Superannuation Guarantee contribution — and yet it’s arguably the single most consequential number for your financial future after your salary itself. Here’s what it actually means for 2026/27.
The rate: 12%, and how it got here
The Superannuation Guarantee reached its legislated final rate of 12% on 1 July 2025, completing a staged increase from 10% that ran across five years. It stays at 12% for 2026/27 — there are no further scheduled increases beyond this point.
It’s paid on top, not deducted
The most important thing to understand: in the standard “plus super” arrangement (the overwhelming majority of Australian salary packages), your employer pays 12% of your ordinary time earnings on top of your salary, into your nominated super fund — it doesn’t come out of the salary figure you negotiated. Some senior or executive packages are quoted “inclusive of super” instead, meaning the 12% is carved out of a single total package figure — worth checking carefully which basis your own offer uses, since the difference is worth exactly 12% of your salary.
What counts as “ordinary time earnings”
SG applies to your ordinary time earnings — your normal hours of work, including most bonuses and commissions — but specifically excludes overtime payments. This is a genuine, deliberate carve-out under ATO ruling SGR 2009/2, not an oversight, so don’t expect your overtime hours to generate additional super contributions.
The Maximum Contribution Base
There’s a ceiling: for 2026/27, employers aren’t required to pay SG on earnings above the $270,830 Maximum Contribution Base. If you’re earning above this level, the SG your employer is legally obliged to pay is capped — though plenty of employers choose to pay SG on the full salary regardless, as a matter of policy rather than legal requirement.
The concessional contributions cap
Separately from the Maximum Contribution Base, there’s a $32,500 concessional contributions cap for 2026/27 — the combined limit on your employer’s SG plus any salary sacrifice or personal deductible contributions you make, all taxed at the concessional 15% rate inside the fund. Contribute beyond this cap and the excess loses the concessional tax treatment.
What to actually check on your payslip
Confirm your super is being paid at 12% of the correct base (your ordinary time earnings, not including overtime), going to your correct, currently-active fund, and landing on time — from 1 July 2026, employers must pay SG within seven business days of each payday under the new “payday super” rules, rather than the previous quarterly cycle, which should make it considerably easier to notice quickly if a payment is missing.
See exactly how much SG applies to your own salary, including the Maximum Contribution Base if you’re a high earner, with our free salary calculator.