How the super guarantee works
The super guarantee (SG) rose to 12% on 1 July 2025 and stays at 12%. It is calculated on your ordinary time earnings, which usually excludes overtime.
Contributions are taxed at 15% when they enter your fund. People with income above $250,000 pay an extra 15% (Division 293 tax).
Salary sacrifice: 5% extra into super
What salary sacrificing 5% of your salary costs you in take-home pay, and how much more ends up in super after the 15% contributions tax:
| Salary | Employer super (12%) | Extra 5% sacrificed | Cost to take-home | Net gain vs cash |
|---|---|---|---|---|
| $50,000 | $6,000 | $2,500 | $1,663 | $463 |
| $70,000 | $8,400 | $3,500 | $2,378 | $598 |
| $90,000 | $10,800 | $4,500 | $3,060 | $765 |
| $120,000 | $14,400 | $6,000 | $4,080 | $1,020 |
| $150,000 | $18,000 | $7,500 | $4,575 | $1,800 |
Contribution caps
Employer and salary sacrifice contributions count towards the concessional cap of $30,000 a year. Unused cap from the previous five years can be carried forward if your super balance is under $500,000.
Checking your super is paid
- Your payslip must show the super your employer paid or will pay.
- Check your fund account or myGov every few months.
- Report unpaid super to the ATO.
Super on overtime, bonuses and leave
- Overtime: usually not included in ordinary time earnings, so no SG is payable on it.
- Bonuses and commissions: SG applies if they relate to ordinary hours of work.
- Annual leave and sick leave: SG applies to the pay you receive.
Choosing and keeping one fund
When you start a new job, your employer pays into your existing "stapled" fund unless you choose another. Consolidating several accounts avoids paying multiple sets of fees and insurance premiums.
Frequently asked questions
What is the super guarantee rate for 2026-27?
12% of ordinary time earnings.
Is super included in my salary?
Usually not. It is paid on top unless your contract says your package includes super.
Is salary sacrifice worth it?
For most people earning above about $45,000, yes: contributions are taxed at 15% instead of 30% or more.
Is super paid on overtime?
Usually not, because the super guarantee is calculated on ordinary time earnings.
Can I have more than one super fund?
Yes, but each account charges fees. Most people are better off consolidating into one fund.
Figures use ATO 2026-27 resident tax rates, the low income tax offset, the Medicare levy and HELP repayment rates. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.