Note: Superannuation guarantee contributions are classed as concessional (before-tax) contributions.
It is a legal requirement for your employer to make SGC payments into your superannuation account, the amount of SGC you should receive is based on a percentage of your salary and/or wage.
You are eligible to receive SGC from your employer if you: earn $450 or more (before tax) per month and are aged 18 years or older.
If you are eligible, your employer (by law) must pay your super contributions into your super account in addition to your wages. The minimum amount paid is 9.5% of your ordinary time earnings.
Ordinary time earnings are generally what you earn for their ordinary hours of work, including:
- over-award payments
- commissions
- shift loading
- annual leave loading
- allowances
- bonuses
For Example, Jacob earnt $45,000 (ordinary time earnings) for the financial year, his employer paid $4,275 into his super fund on top of his wages. ($45,000 x 9.5% = $4,275)
If your employer does not pay the minimum amount of SGC into your super fund by a specified date they may have to pay a super guarantee charge to the Australian Taxation Office (ATO).
The current rate of SGC is set at 9.5% until 1 July 2021, where it will increase to 10%. The minimum SGC will increase to 12% by 1 July 2025.
| 1 July 2020 – 30 June 2021 | 9.50% |
| 1 July 2021 – 30 June 2022 | 10.00% |
| 1 July 2022 – 30 June 2023 | 10.50% |
| 1 July 2023 – 30 June 2024 | 11.00% |
| 1 July 2024 – 30 June 2025 | 11.50% |
| 1 July 2025 – 30 June 2026 and onwards | 12.00% |
If you would like to work out the contribution amount you should be receiving into your super fund: Employer contributions calculator | ASIC’s MoneySmart