Superannuation Rate 2025-26: The 12% SG Rate Explained
The superannuation rate for 2025-26 is 12%. Learn what the SG rate means, who it applies to, the maximum contribution base, and when super is due.
What is the superannuation rate for 2025-26?
The Superannuation Guarantee (SG) rate for the 2025-26 financial year is 12%. This means your employer must contribute an amount equal to 12% of your ordinary time earnings (OTE) into your nominated super fund. The 12% rate took effect on 1 July 2025 as part of the legislated schedule of SG rate increases under the Treasury Laws Amendment (Your Future, Your Super) Act 2021. This is the final scheduled increase — the rate was 11.5% in 2024-25, 11% in 2023-24, and 10.5% in 2022-23. The 12% rate is expected to remain at this level unless Parliament legislates further changes. For an employee earning $70,000 per year, 12% means $8,400 in annual super contributions from their employer.
Who has to receive the SG?
Since 1 July 2022, all employees are entitled to the Superannuation Guarantee regardless of how much they earn. Previously, employees had to earn at least $450 per month to qualify, but that threshold was abolished. This means every employee — full-time, part-time, or casual — must receive super contributions from the first dollar. This applies even to employees under 18 who work more than 30 hours per week. Some contractors may also be entitled to super if they are paid wholly or principally for their labour under the expanded definition of employee for SG purposes. The only common exclusions are employees paid under the Comcare scheme, certain foreign executives, and members of the Defence Force in relation to military service.
What counts as ordinary time earnings (OTE)?
Super is calculated on ordinary time earnings, not total salary. OTE includes your base salary or wages for ordinary hours of work, commissions, shift loadings, allowances (if they form part of your ordinary pay), paid leave (annual, personal, long service), and bonuses that relate to ordinary hours. OTE does not include overtime payments, one-off reimbursements for expenses, or workers compensation payments. For casual employees, OTE includes the casual loading component. If you are salary-sacrificing into super, your employer still owes the SG on your pre-sacrifice salary. The distinction between OTE and total earnings matters because some pay components like overtime are excluded from the super calculation.
The maximum super contribution base
There is 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 $65,070 per quarter (equivalent to $260,280 per year). If you earn above this amount, your employer only has to pay super on earnings up to the cap. For example, if you earn $80,000 in a quarter, your employer only needs to contribute 12% of $65,070 ($7,808.40), not 12% of $80,000. However, many employment contracts include a clause requiring super on total earnings regardless of the cap. The maximum contribution base is indexed each year in line with Average Weekly Ordinary Time Earnings (AWOTE). For most Australians earning under $260,280 per year, this cap has no practical impact.
History of SG rate increases
The Superannuation Guarantee has risen steadily since its introduction in 1992. It started at 3% in 1992-93, reached 9% by 2002-03, and then stayed at 9% for over a decade. From 2013-14, a gradual increase schedule was legislated: 9.25% (2013-14), 9.5% (2014-15 through 2020-21), 10% (2021-22), 10.5% (2022-23), 11% (2023-24), 11.5% (2024-25), and finally 12% from 1 July 2025. The long freeze at 9.5% during the Abbott/Turnbull/Morrison years was controversial, with industry super funds estimating the delay cost average workers tens of thousands of dollars in retirement savings. Now at 12%, Australia's compulsory super rate is among the highest in the world.
When must super be paid?
Employers must pay SG contributions at least quarterly. The due dates are: 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. If an employer misses a deadline, they cannot claim a tax deduction for the late contributions and must instead pay the Super Guarantee Charge (SGC) to the ATO. The SGC includes the shortfall amount calculated on total salary and wages (not just OTE), a nominal interest component of 10% per annum, and an administration fee of $20 per employee per quarter. Many employers choose to pay super more frequently — fortnightly or monthly — to avoid large quarterly liabilities and the risk of missing deadlines.
What to do if you are not receiving super
First, check your super fund balance through your fund's app or website, or via your myGov account linked to the ATO. Remember that employer contributions may take a few weeks to appear after each quarter's due date. If you notice contributions are missing, raise it with your employer or payroll department — many cases are processing errors or delays. If your employer confirms they have not been paying, or you cannot get a response, you can report unpaid super to the ATO using their online form at ato.gov.au. The ATO investigates these reports confidentially and can compel employers to pay. You can also check the Superannuation Holding Accounts Special Account (SHASA) — the ATO may be holding lost super on your behalf. Use our Superannuation Calculator to verify what you should be receiving each pay period.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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