Super Guarantee Rate 2025-26: What 12% SG Means for Your Pay

The Superannuation Guarantee (SG) rate for the 2025-26 financial year is 12% of ordinary time earnings (OTE). This is the final step in the legislated schedule of increases that began at 9.5% in 2020-21 and rose by 0.5% per year.

The 12% rate took effect on 1 July 2025 and is expected to remain at this level unless Parliament legislates further changes. For an employee earning $80,000 per year, 12% SG means $9,600 in employer super contributions annually. This is a meaningful increase from the $7,600 that the same employee would have received at the old 9.5% rate — an additional $2,000 per year flowing into their retirement savings.

Don't skip this part. Over a 30-year career, the difference between 9.5% and 12% SG compounds to tens of thousands of dollars in additional retirement savings.

Whether the SG increase affects your take-home pay depends on your employment contract. If your contract specifies a salary plus super arrangement (e.g., '$80,000 plus super'), your take-home pay shouldn't change — the employer pays the higher SG on top of your salary.

However, if your contract specifies a total remuneration package that includes super (e.g., '$89,600 total package'), the higher SG means more goes to super and less to your take-home pay. Many employers in the private sector use total package arrangements, particularly for senior roles. If you're unsure, check your contract or ask HR.

If your take-home pay has decreased following the SG increase, verify that this is contractually correct. Employees on awards or enterprise agreements typically receive salary plus super, meaning the employer absorbs the increase. Not complicated — just easy to miss.

Employers must pay SG contributions at least quarterly by the following deadlines: Q1 (July-September) by 28 October, Q2 (October-December) by 28 January, Q3 (January-March) by 28 April, and Q4 (April-June) by 28 July. The SG applies to all employees from the first dollar earned — the old $450 per month minimum threshold was abolished on 1 July 2022.

The practical side: This includes full-time, part-time, and casual employees. Employees under 18 must work more than 30 hours per week to qualify. If an employer misses a quarterly deadline, they can't claim a tax deduction for the late payment and must instead pay the Super Guarantee Charge (SGC), which includes the shortfall amount calculated on total salary (not just OTE), 10% nominal interest, and a $20 administration fee per employee per quarter.

To verify your employer is paying the correct SG, check your super fund's online portal or app for recent contributions. Compare the amount against your payslip — the super contribution shown should equal approximately 12% of your ordinary time earnings for that pay period.

You can also check through your myGov account linked to the ATO, which shows super contributions from all employers. Allow up to four weeks after each quarterly deadline for contributions to appear, as there's a processing lag between payment and receipt by the super fund. If contributions are missing or incorrect, raise the issue with your employer first — many cases are processing delays or payroll errors.

If the employer doesn't rectify the situation, lodge an unpaid super enquiry with the ATO online. The ATO investigates these reports confidentially and can compel payment plus penalties.

There's a quarterly cap on the amount of earnings an employer must pay super on, called the maximum super contribution base. For 2025-26, this cap is approximately $65,070 per quarter (equivalent to $260,280 per year).

What actually happens: If you earn above this amount, your employer only needs to pay 12% SG on earnings up to the cap. For example, on quarterly earnings of $80,000, SG is calculated on $65,070 ($7,808.40), not $80,000 ($9,600). However, many employment contracts, particularly for senior roles, specify that super is payable on total earnings regardless of the maximum contribution base.

If you're a high-income earner, check whether your contract guarantees super on total earnings or only up to the cap. For most Australians earning under $260,280 per year, the maximum contribution base has no practical impact.

The increase to 12% SG has a significant positive impact on long-term retirement outcomes. For a 30-year-old earning $80,000 (growing at 3% per year), the difference between 9.5% and 12% SG over a 37-year career to age 67 amounts to approximately $180,000 in additional super at retirement (assuming 7% net investment returns).

For a 25-year-old, the difference is even larger due to the longer compounding period. At the national level, the 12% SG rate means an additional $20 billion per year flowing into the superannuation system, supporting investment in Australian and global markets. Use our Superannuation Calculator to see how the 12% rate affects your projected retirement balance, and our Retirement Calculator to determine whether your super is on track for the retirement lifestyle you want.