Super Guarantee Rate 2026-27: How Much Your Employer Must Pay

Superannuation · 23 July 2026 · Use the super growth calculator →

The super guarantee (SG) is the compulsory contribution your employer must make to your super fund. As of 2026-27, the rate is 12% of your ordinary time earnings. It’s the foundation of Australia’s retirement savings system, and understanding how it’s calculated — and what to do when it isn’t paid — matters for every working Australian.

The current rate: 12% and holding

The SG rate reached its legislated target of 12% on 1 July 2025, completing a decade-long increase from 9.5%. The rate is now legislated to remain at 12% with no further scheduled increases. Here’s how the rate rose over recent years:

This means someone earning $100,000 in 2026-27 will receive $12,000 in employer SG contributions over the year — $500 more than they would have received at the 2024-25 rate of 11.5%, and $2,500 more than at the 2020-21 rate of 9.5%. Over a 40-year working life, the difference between a 9.5% and 12% SG rate compounds to a substantially larger retirement balance — hundreds of thousands of dollars in today’s terms.

Who’s eligible for super guarantee

You’re entitled to SG contributions if you’re an employee aged 18 or over, regardless of how much you earn per month (the $450 monthly threshold was abolished from 1 July 2022). If you’re under 18, you must work more than 30 hours per week to be eligible for SG.

The definition of employee is broad for SG purposes. If you work under a verbal or written employment contract, receive pay for your labour (as opposed to invoicing as a business), and are directed and controlled by an employer, you’re generally entitled to SG — even if you’re described as a contractor, have an ABN, or are paid on invoice.

Some workers are explicitly excluded from SG: members of the army, navy, or air force (who have separate super arrangements), certain international executives, and employees covered by bilateral social security agreements with certain countries are not entitled to SG. Employees earning less than $450 in a calendar month are now covered following the abolition of the threshold.

How SG is calculated

SG is calculated on your ordinary time earnings (OTE) — not your total remuneration. OTE is broadly what you earn for your ordinary hours of work, including:

Regular salary or wages, commissions, most allowances (except expense reimbursements like a car allowance based on kilometres travelled), performance bonuses, shift loadings and penalty rates for ordinary hours, casual loadings, and paid leave (annual leave, personal leave, long service leave).

It generally does not include overtime payments (hours worked beyond your ordinary hours), expense reimbursements (the employer is paying you back for money you spent, not for your labour), or certain termination payments (lump sums for unused annual leave or redundancy pay).

The maximum contribution base caps the earnings on which SG must be paid. For 2026-27, this is $65,070 per quarter, meaning the maximum SG contribution for a single quarter is $65,070 × 12% = $7,808.40. If you earn more than $260,280 annually (4 × $65,070), your employer is only required to pay SG on the first $65,070 each quarter — the rest of your salary doesn’t attract SG.

Contribution frequency and timing

Employers must pay SG contributions at least quarterly, by the due dates: 28 October (for July-September quarter), 28 January (October-December), 28 April (January-March), and 28 July (April-June). Many employers pay more frequently — monthly, fortnightly, or aligned with each pay period — but quarterly is the minimum legal requirement.

If an employer misses a quarterly due date, they must lodge a Superannuation Guarantee Charge (SGC) statement with the ATO and pay the SGC, which includes the outstanding SG amount plus interest (currently around 10% per annum) and an administration fee. The SGC is not tax-deductible to the employer (whereas on-time SG payments are), which creates a strong incentive for compliance.

The ATO’s Single Touch Payroll (STP) system has improved SG compliance by providing near-real-time visibility of wages paid, allowing the ATO to cross-reference against SG contributions reported by super funds. Employers who underpay or pay late are increasingly likely to be detected.

Unpaid super: how to check and recover

SG underpayment remains a problem. The ATO estimates that billions in SG goes unpaid each year, disproportionately affecting workers in hospitality, construction, cleaning, and other sectors with high casualisation and smaller employers.

You can check your super contributions by logging into your super fund’s online portal or app. Most funds display recent employer contributions with dates and amounts. Alternatively, your myGov account linked to the ATO shows reported contributions. Look for gaps — if you worked consistently but a quarter shows no contribution, or if the contribution amount seems low relative to your OTE, investigate.

If you find missing or underpaid SG, the ATO’s ‘Unpaid super from my employer’ tool on myGov is the primary enforcement mechanism. You provide your employer’s details and the periods in question, and the ATO investigates. They can issue assessments, impose penalties, and in serious cases take legal action. The ATO recovers most reported unpaid SG, though the process can take months.

If you’re comfortable doing so, raising it directly with your employer first is often faster — sometimes it’s a payroll error rather than deliberate underpayment. But if the employer is evasive or hostile, go straight to the ATO.

Self-employed and SG

If you’re genuinely self-employed (running a business, not an employee in disguise), you’re not entitled to SG from anyone — you’re responsible for your own super. However, making voluntary concessional contributions to your own super fund can serve the same purpose and is tax-deductible (up to the $30,000 concessional cap). Many self-employed people structure their super contributions as a quarterly discipline, mimicking the SG schedule, to ensure they’re building retirement savings alongside their business cashflow.

The line between employee (entitled to SG) and contractor (not entitled) is fact-specific and frequently tested. The ATO’s employee/contractor decision tool can help, but if there’s genuine uncertainty and significant money at stake, professional advice is warranted.

Use the Super Growth calculator to model how your SG contributions grow over your working life and project your retirement balance. For related content, see our guides on salary sacrifice to super and super contribution caps.

Disclaimer: This article provides general estimates only and does not constitute financial, tax, or legal advice. SG rates and rules are subject to legislative change. For disputes about unpaid super or employment classification, consult the ATO, Fair Work Ombudsman, or a qualified professional. Last updated: July 2026.

Frequently asked questions

Is the super guarantee rate still going up?
The super guarantee (SG) rate reached 12% on 1 July 2025 and is legislated to remain at 12% — there are no further scheduled increases. The rate increased incrementally from 9.5% in 2021: 10% from 1 July 2021, 10.5% from 1 July 2022, 11% from 1 July 2023, 11.5% from 1 July 2024, and 12% from 1 July 2025. The 12% rate applies for the 2025-26 financial year and beyond. While there has been political discussion about potentially increasing the rate further or adjusting the trajectory, no legislation has been passed to move the rate beyond 12%. Any future changes would require parliamentary approval and would almost certainly be announced well in advance of the effective date.
Does my employer pay SG on overtime, bonuses, and commissions?
SG is calculated on ordinary time earnings (OTE), which generally includes: base salary or wages, commissions, shift loadings, allowances (except expense reimbursements), bonuses tied to performance, and some directors' fees. It generally does not include overtime payments (hours worked outside an employee's ordinary hours). The distinction matters because some awards and agreements have different definitions of 'ordinary hours' — for a permanent employee working a standard 38-hour week, hours beyond 38 are overtime and don't attract SG. For a casual whose ordinary hours may extend across evenings or weekends with penalty rates, those penalty-loaded hours are still OTE and SG applies. Lump-sum termination payments for unused annual leave or long service leave also don't generally attract SG. If you're unsure, the ATO's SG eligibility decision tool on their website can help clarify specific payment types.
What can I do if my employer isn't paying my super?
First, check your super account to confirm contributions are missing — your fund's app or online portal should show recent employer contributions. Contributions must be made at least quarterly (by 28 January, 28 April, 28 July, 28 October). If contributions are missing or late, start by asking your employer directly — sometimes it's an administrative error. If they don't resolve it, report the unpaid super to the ATO through the online 'Unpaid super from my employer' form on myGov. The ATO will investigate and can require the employer to pay the outstanding SG plus interest (currently around 10% per annum) and an administration fee. The ATO has broad enforcement powers and generally recovers most reported unpaid super. If you've left the employer, you can still report unpaid SG going back multiple years — there's no time limit on historical unpaid super.
Do contractors get paid super guarantee?
It depends on whether the contractor is considered an employee for super purposes — which isn't the same as being an employee for tax or workplace law purposes. If the contract is wholly or principally for the person's labour (the contractor personally performs the work), they're likely entitled to SG. This captures many sole traders operating under an ABN who work primarily for one client, even if they invoice as a business. The relevant test is the nature of the working arrangement, not the label on the contract. If the contractor can delegate the work, provides their own significant tools and equipment, and bears commercial risk, they're less likely to be entitled to SG. If they're paid primarily for their personal labour and skill, SG generally applies.

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Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Figures and thresholds referenced are 2026 estimates and may vary by individual circumstances. Always verify details with a licensed financial adviser, tax professional, or your state revenue office before making a purchase or investment decision.