SG contributions are ‘concessional’ contributions that are taxed at 15%, rather than at the employee’s marginal tax rate. This 15% contributions tax is paid at the time the contribution is paid into a ‘taxed’ fund, or at the time the member withdraws the benefit from an ‘untaxed’ fund.
Find out more about the Superannuation Guarantee rate.
Employers who fail to make sufficient contributions for their employees become liable for the Superannuation Guarantee charge.
Paying super from 1 July 2026
Show moreOn 6 November 2025, the Commonwealth Government’s Payday Super legislation introduced changes to how employers calculate, pay and report SG. The changes aim to strengthen Australia’s retirement system by ensuring employees receive their contributions more regularly and transparently.
From 1 July 2026, employers are required to:
- pay super at the same time as salary and wages
- calculate super based on qualifying earnings (QE)
- report super information through Single Touch Payroll.
QE includes ordinary time earnings, commissions, salary sacrifice contributions, and other amounts paid to extended definition employees (e.g. contractors paid for their labour).
Contributions must be received by the super fund within seven (7) business days after payday (unless an extended timeframe applies, such as for new employees).
For more information on Payday Super, visit the Australian Taxation Office website.
Calculating SG contributions
Show moreFor MOST Australian employees, SG contributions are calculated as 12% of Qualifying Earnings (‘QE’).
However, for most State public sector employees, SG contributions are calculated as 12% of QE plus a broader range of salary items including OTE.
| Qualifying Earnings (QE) (‘Section 4B’ contributions) | PLUS | Additional items for State workers (‘Section 4C’ contributions) |
|---|
For more information about the treatment of common allowances for superannuation, see the guide: How to Calculate Contributions for Public Sector Employees.
Exceptions
This contributions base is used by all State public sector employers except those listed in State Superannuation Regulation 12E who are exempted from the State Superannuation Act 2000. These employers are only required to use OTE as the base for SG contributions, except for contributions to a defined benefit scheme. Find out more about employer exemptions from State superannuation requirements.
Contributions for members of defined benefit schemes
Show moreOTE and SG concepts do not apply directly to members of defined benefit schemes such as the Gold State Super and Pension Scheme administered by GESB or the Fire and Emergency Services Superannuation defined benefit fund. For example:
- superannuation contributions for Gold State Super members are generally calculated on employee payments, except where specifically excluded under State Superannuation Regulation 17A
- superannuation contributions for Pension Scheme members are based on the requirements of section 6(1) of the Superannuation and Family Benefits Act 1938
- the contribution rules for the Fire and Emergency Services Superannuation schemes, the Parliamentary Pension Scheme and the Judges' Pension Scheme are set out under their respective legislation.
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