Written byThe superannuation guarantee rate is the percentage of an employee's qualifying earnings that an employer must pay into super, set at 12% for 2026-27.
Also known as: super guarantee rate, SG rate, superannuation rate
Key points
- The rate is 12% of qualifying earnings for 2026-27, after stepping up from 11.5% in the 2024-25 year.
- It reached 12% on 1 July 2025, at the end of a legislated series of increases.
- From 1 July 2026 the base is qualifying earnings: ordinary time earnings, all commissions, and super salary sacrifice that would otherwise count.
- Under payday super, contributions must reach the fund within seven business days of payday, or the ATO super guarantee charge applies.
- You can top up beyond the employer rate through salary sacrifice or personal contributions, within the annual caps.
How the superannuation guarantee rate works
The rate applies to qualifying earnings rather than to every dollar you are paid. Qualifying earnings took over from ordinary time earnings on 1 July 2026: it starts from what you earn for your ordinary hours, then adds all commissions, including those earned entirely outside ordinary hours, and amounts you sacrifice to super that would otherwise qualify. Overtime still sits outside it.
For an employer this is a real cashflow commitment sitting on top of wages, and payday super tightens the timing: the money has to reach the fund within seven business days of each payday, not at the end of a quarter. A sole trader has no obligation to pay themselves super, although many contribute voluntarily, and contractors paid mainly for their labour can still be treated as employees for super.
How the rate reached 12%
The superannuation guarantee started well below today's figure and rose in legislated steps. It sat at 11.5% in the 2024-25 year and reached 12% on 1 July 2025, where it remains for 2026-27. Any further change would need new legislation, so payroll systems follow the rates the ATO publishes each year.
Because the rate is a percentage, every pay rise lifts the contribution with it. A job advertised as a salary plus super quotes the cash figure with the contribution calculated on top, while a total remuneration package already has the contribution folded into the headline number.
What to check on your payslip
Your payslip should show the super contribution for the period and the fund receiving it. Compare that amount against your qualifying earnings for the same period to see whether the right rate has been applied, and check the fund details match the account you actually use.
If contributions look light or late, your fund's transaction history and ATO online services through myGov show what has actually arrived. Because payday super requires contributions within seven business days of payday, a gap shows up faster than it used to. Unpaid super can be reported to the ATO, which can pursue the employer for the shortfall plus the super guarantee charge.
Example
Nina is paid fortnightly. For one fortnight she earns $2,400 for her ordinary hours, $300 in commission and $200 of overtime. Her employer applies the 12% rate to the $2,700 of qualifying earnings, because commission counts and overtime does not, so $324 goes to her nominated fund and has to arrive there within seven business days of payday. Nina also sacrifices $100 a fortnight from her own pay, which counts towards her concessional cap. She checks each payslip to confirm both the contribution and the fund name.
Not to be confused with
- Salary sacrifice
- salary sacrifice is a voluntary contribution from your own pay, on top of what the employer has to contribute
Frequently asked questions
What is the current super rate in Australia?
It is 12% of qualifying earnings for the 2026-27 year. The rate rose in legislated steps, sitting at 11.5% in 2024-25 before reaching 12% on 1 July 2025. The ATO publishes the figure for each year on its key superannuation rates page.
What are qualifying earnings?
The base the super guarantee is calculated on from 1 July 2026. It covers your ordinary hours, including many allowances, loadings and paid leave, plus all commissions and amounts you sacrifice to super that would otherwise qualify. Salary sacrificed to other benefits, such as a novated lease, does not count. Overtime is generally excluded. It replaced ordinary time earnings, which applied to quarters ending on or before 30 June 2026.
What happens if my employer does not pay my super?
Check your fund's transaction history and ATO online services through myGov to see what has arrived. Under payday super the contribution should reach your fund within seven business days of payday. Unpaid or late contributions can be reported to the ATO, which can pursue the employer for the shortfall plus the super guarantee charge.
Does the super rate apply to contractors?
It can. A contractor paid mainly for their own labour is often treated as an employee for super, even with an ABN. The test looks at the substance of the working arrangement rather than the label on the invoice, so check the ATO's guidance for your situation.
Is super paid on top of my salary?
Usually yes. Most Australian roles are advertised as a salary plus super, so the contribution is calculated on top of the cash figure. In a total remuneration package the contribution is inside the headline number, which leaves less cash in your hand each pay.
Related terms
Salary sacrifice
Salary sacrifice is an agreement with your employer to receive less salary in return for benefits paid from pre-tax pay, such as extra super or a novated lease.
Read definitionATO
The ATO is the Australian Taxation Office, the national tax authority that collects income tax, GST and PAYG, administers superannuation rules, issues rulings and enforces compliance.
Read definitionSole trader
A sole trader is the simplest Australian business structure: one person owns and runs the business, keeps the profits, and is personally liable for its debts.
Read definitionCash flow
Cash flow is the movement of money into and out of a business over a period; unlike profit, it tracks actual receipts and payments, so it measures liquidity.
Read definitionAPRA
APRA is the Australian Prudential Regulation Authority, the statutory regulator responsible for prudential regulation of banks, credit unions, insurers and superannuation funds, protecting depositors, policyholders and fund members.
Read definitionInsurance
Insurance is a contract where you pay a premium and an insurer covers specified losses, such as damage to a financed asset or a lender's loss on default.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.