Superannuation Guarantee (SG)
The compulsory minimum percentage of an employee's qualifying earnings (formerly ordinary time earnings) employers must contribute to their super fund.
The Superannuation Guarantee (SG) is the minimum percentage of an employee's qualifying earnings that employers must contribute to their employee's super fund. For 2026-27, the SG rate is 12%. Qualifying earnings replaced ordinary time earnings (OTE) as the SG base for pay from 1 July 2026; quarters ending on or before 30 June 2026 were calculated on OTE. It is legislated to remain at 12% going forward after reaching this level from 1 July 2025 (up from 11.5% in 2024-25). SG applies to employees aged 18 and over, and to employees under 18 who work more than 30 hours per week.
Under Payday Super (the Treasury Laws Amendment (Payday Superannuation) Act 2025), employers must now pay SG contributions on "qualifying earnings" at the same time as wages — the contribution must be received by the employee's super fund within 7 business days of each payday (called a QE day), replacing the old quarterly (28-days-after-quarter-end) system from 1 July 2026. Late or unpaid SG contributions attract the Super Guarantee Charge (SGC), which is now assessed per payday and includes the missed contributions, notional earnings accruing daily at the general interest charge rate, and an administrative uplift of up to 60% of the shortfall. Unlike the old regime, the SGC shortfall, notional earnings and administrative uplift are now tax-deductible.
Qualifying earnings is OTE plus all commissions (including commissions for work performed entirely outside ordinary hours), amounts salary sacrificed to super that would otherwise have been qualifying earnings, and certain payments to people inside the expanded definition of employee. What counts as OTE itself has not changed: it includes base salary, shift loadings, paid leave and some allowances, and generally excludes overtime payments, which are not qualifying earnings either. Since 1 July 2022, the $450 monthly threshold was removed — SG is now payable on all OTE regardless of how little the employee earns. Contractors who are primarily paid for their labour may also be entitled to SG even if engaged via an ABN.
How it works
SG is calculated as a percentage of your qualifying earnings, currently 12% for 2026-27, and is paid by your employer on top of your wages rather than deducted from them. It applies to employees aged 18 and over, and to employees under 18 who work more than 30 hours in a week. Since the $450 monthly earnings threshold was removed on 1 July 2022, SG is payable from the first dollar earned in a period, and it can also apply to some contractors paid mainly for their labour, even when they operate under an ABN.
On a payslip, SG appears as a separate contribution paid into your nominated super fund, not as tax withheld, and it should show up on your income statement through Single Touch Payroll. Under Payday Super, from 1 July 2026 employers must get the contribution into your fund within 7 business days of each payday, replacing the old system where SG was only required within 28 days of the end of each quarter — so you can check contributions have actually landed almost as often as you're paid.
Qualifying earnings generally exclude overtime, which is easy to miss when comparing your gross pay to the super actually contributed. Qualifying earnings replaced ordinary time earnings as the SG base for pay from 1 July 2026 — it adds all commissions and amounts salary sacrificed to super, but overtime stays out of both. Missed or late SG triggers the Super Guarantee Charge, now assessed per payday rather than per quarter. A common misconception is that SG is optional for casual work, short shifts, or very low pay — it isn't, once you meet the age and hours conditions, and there's no longer a minimum monthly earnings cut-off protecting an employer from paying it.
Example: SG on a fortnightly pay
Say your qualifying earnings for a fortnight are $4,000, made up of base salary and a shift loading, with no overtime included. At the 12% SG rate for 2026-27, your employer must contribute $480 into your super fund for that fortnight.
Under Payday Super, that $480 has to reach your fund within 7 business days of the pay date. If your employer instead pays $150 of that fortnight as extra overtime, the qualifying earnings base for SG purposes drops to $3,850, so the required contribution falls slightly to $462 — overtime itself is generally not counted as qualifying earnings.
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Salary Sacrifice
An arrangement where you direct part of your pre-tax salary into super (or other benefits), reducing your taxable income.
Concessional Contributions
Before-tax super contributions taxed at 15% inside the fund, including employer SG, salary sacrifice, and personal deductible contributions.
Super Guarantee Charge
A penalty imposed on employers who fail to pay the correct SG contributions on time, including the shortfall, notional earnings, and an administrative uplift.
Preservation Age
The minimum age at which you can access your super savings, ranging from 55 to 60 depending on your date of birth.
Self-Managed Super Fund (SMSF)
A private super fund you manage yourself, with up to 6 members, offering full control over investment choices.