The Super Guarantee rate is 12% in 2025–26. Your employer must pay it on top of your salary — but many Australians never check if it's actually being paid. Here's how the SG works, when it must be paid, how to verify your contributions, and what salary sacrifice can do for your retirement balance.
The Superannuation Guarantee (SG) is a compulsory employer contribution to your superannuation fund, legislated under the Superannuation Guarantee (Administration) Act 1992. It requires employers to contribute a percentage of your ordinary time earnings into a complying superannuation fund on your behalf.
Superannuation is Australia's mandatory retirement savings system. Money paid into your super fund is generally preserved until you reach your preservation age and satisfy a condition of release — it cannot simply be withdrawn like a bank account. Super contributions grow through investment returns within the fund, taxed at concessional rates.
The SG rate has been increasing incrementally toward 12%. It reached 12% from 1 July 2025 and remains at 12% for 2025–26. Historical and legislated rates:
| Financial Year | SG Rate |
|---|---|
| 2022–23 | 10.5% |
| 2023–24 | 11.0% |
| 2024–25 | 11.5% |
| 2025–26 | 12.0% |
The 12% rate applies to ordinary time earnings — your regular salary or wages. It does not apply to overtime, although some enterprise agreements and awards include overtime in the SG calculation base. Always check your employment contract and award.
Most employees are entitled to the Super Guarantee. Eligibility applies to:
Certain categories may not be entitled to SG — including some non-resident employees, employees paid for work done overseas in certain circumstances, and some domestic or private workers working less than 30 hours per week. Consult the ATO or a professional for specific situations.
Employers must pay the Super Guarantee at least quarterly. The quarterly due dates are:
| Quarter | Payment Due Date |
|---|---|
| 1 July – 30 September | 28 October |
| 1 October – 31 December | 28 January |
| 1 January – 31 March | 28 April |
| 1 April – 30 June | 28 July |
Important: SG contributions must be received by the super fund by the due date — not merely sent. If an employer misses the deadline or pays the wrong amount, they become liable for the Superannuation Guarantee Charge (SGC), which is not tax-deductible and includes interest and an administration fee. This is more expensive than simply paying on time.
Many Australians never verify their super is being paid correctly. Here are the general methods for checking, for educational purposes:
If you believe your employer is not paying your SG correctly, you can report this to the ATO using the "Report unpaid super" tool at ato.gov.au. The ATO can investigate and recover unpaid super on your behalf. This is general educational information — the ATO website provides specific guidance on the reporting process.
Salary sacrifice into superannuation is an arrangement where you agree to forgo a portion of your pre-tax salary in exchange for your employer making additional super contributions. Because these contributions are concessional (pre-tax), they are taxed at 15% inside the fund rather than at your marginal income tax rate.
The actual benefit depends on your marginal tax rate, total concessional contributions, Division 293 tax (which applies to high income earners), and other individual factors. Salary sacrifice arrangements require a written agreement with your employer and should be structured with professional advice.
The ATO limits the amount you can contribute to super at concessional (pre-tax) rates:
| Contribution Type | 2025–26 Cap | Tax Rate Inside Fund |
|---|---|---|
| Concessional (pre-tax) — includes SG + salary sacrifice | $30,000 | 15% |
| Non-concessional (after-tax) | $120,000 | 0% (already taxed) |
| Total Super Balance cap for non-concessional | $1.9 million | N/A |
Exceeding the concessional cap results in the excess being included in your assessable income and taxed at your marginal rate, with a 15% tax offset. This is an area where professional advice is important — the rules are complex.