For the 2026-27 financial year, the superannuation guarantee rate 2026 is 12.00% of eligible employees’ ordinary time earnings, according to the Australian Taxation Office. That’s the rate employers must use from 1 July 2026 to 30 June 2027.
Working out super can feel like one more moving part in running a small business, especially when the payment rules change. The key is to apply the right rate to the right earnings and keep the timing clear. This guide explains how to calculate a super guarantee payment, which quarterly rules apply for quarters ending on or before 30 June 2026, and what changes for the 2026-27 year.
You’ll also see how ordinary time earnings affect the calculation, with practical examples to make the percentage easier to apply to payroll. Whether you’re checking an employee’s contribution or preparing your business processes for the next financial year, you’ll have a clearer picture of how much super to pay and when.
Key Takeaways
- Calculate employer super on eligible ordinary time earnings, distinguishing ordinary hours and paid leave from overtime.
- For quarters ending on or before 30 June 2026, contributions are generally due quarterly, with payment due 28 days after each quarter ends.
- Keep the financial-year rate changes in view when reviewing payroll records and contributions.
- For 2026-27, the general rate is 12.00% from 1 July 2026 to 30 June 2027, according to the Australian Taxation Office.
- Understand how the 2025-26 rate applies before preparing for the next financial year’s payment arrangements.
Ordinary time earnings and SG calculations
In Australia, employees aged 18 or older are eligible for compulsory super without a minimum earnings or hours requirement. Employees under 18 qualify when they work more than 30 hours in a week.
For payroll, first identify which earnings count, then apply the relevant super guarantee rate. This distinction affects each employee’s contribution, including in a small Rockhampton business with varied rosters and pay arrangements.
Qualifying Earnings
Qualifying earnings generally include payments for ordinary hours, such as bonuses and paid leave, but exclude overtime. Applying the super percentage to all gross pay can therefore produce a different figure from calculating it on eligible earnings alone. Annual leave loading is generally included unless the employer can show it compensates for lost overtime opportunities.
Calculating Super Contributions
Calculate employer super by multiplying an employee’s eligible earnings by the applicable SG rate. From 1 July 2026, the minimum is calculated as a percentage of each eligible employee’s qualifying earnings. For example, at 12%, an employee earning A$85,000 a year in ordinary time earnings receives A$10,200 in employer super for the year.
A second example shows how the percentage translates to a different salary: A$75,000 multiplied by 12% gives A$9,000 a year in employer super. These examples assume the stated annual salary is eligible ordinary time earnings. If an employee’s pay includes overtime, separate those payments from ordinary hours before calculating the contribution.
For each pay calculation, identify the employee’s ordinary time earnings first. Separate ordinary-hours payments, bonuses and paid leave from overtime, then apply the rate relevant to the period being paid. Don’t treat every payment in a payroll run as qualifying earnings. This produces a clearer contribution figure and a useful record of how you calculated it.
Eligibility also depends on age and working hours for younger employees. From 1 July 2022, compulsory employer super generally applied regardless of how much an employee earned. That means the former monthly earnings threshold no longer determines eligibility. For employees under 18, the weekly hours test still matters: they must work more than 30 hours in a week to qualify.
Keep each pay component visible in your payroll records. A clear breakdown distinguishes ordinary hours from overtime and shows how you treated bonuses or paid leave. For annual leave loading, consider whether it compensates for lost overtime opportunities. If it doesn’t, super is generally payable on the loading.
A salary figure alone doesn’t always reveal the contribution. The calculation depends on which parts of the salary are qualifying earnings. Separating eligible earnings from overtime before applying the rate makes the result easier to explain and reconcile.
Quarterly contribution rules through June 2026
No. For quarters ending on or before 30 June 2026, employers generally pay super at least quarterly, with payment due 28 days after each quarter ends. From 1 July 2026, employers must pay super for each payday, at the same time as salary and wages, with contributions reaching an employee’s fund within seven business days of payday.
The quarterly periods before 1 July 2026 are:
- 1 July to 30 September
- 1 October to 31 December
- 1 January to 31 March
- 1 April to 30 June
Each period has its own payment deadline, so record the quarter covered and the date contributions are paid. For the quarter ending 30 June 2026, the 28-day payment rule still applies. The payday-based requirement begins on 1 July, not before.
Maximum contribution base before July 2026
The maximum contribution base limits the ordinary time earnings amount used to calculate compulsory employer super for an employee in a quarter. For the 2025-26 income year, it is A$62,500 per quarter, and the maximum super guarantee payment is A$7,500.00 per quarter. Earnings above the quarterly base don’t increase the required contribution for that quarter.
For example, apply the ordinary SG calculation to eligible earnings up to the A$62,500 quarterly base. At a 12% rate, that base corresponds to the stated maximum payment of A$7,500.00 for the quarter. The limit operates quarter by quarter, so a high-earning employee’s contribution is assessed against each quarter’s base rather than one annual payroll total.
Record the employee’s eligible earnings and the relevant quarter clearly. This makes it easier to see whether the base affects the calculation and to reconcile amounts paid for the quarter. The maximum contribution base is indexed each income year in line with average weekly ordinary time earnings issued by the Australian Bureau of Statistics.
Maximum contribution base for 2026-27
The maximum contribution base limits the earnings used to calculate employer super contributions. From 1 July 2026, its calculation uses the concessional contributions cap multiplied by 100 and divided by the charge percentage, then rounds down to the nearest A$10 multiple. This formula changes how the base is determined for the new income year.
For employers, the practical distinction is between the 2025-26 quarterly base and the base applying in 2026-27. Keep the income year and quarter attached to each calculation, especially when reconciling payroll across June and July. The change to payday super also means payment timing moves from quarterly deadlines to each payday from 1 July 2026.
Historical Super Guarantee rate increases
Australia’s super guarantee rate has increased over time, so the applicable percentage depends on the period being checked. When reviewing payroll, match each contribution to its payment period and the rate that applied then. Don’t substitute a historical rate for a later one simply because you’re reviewing the records together.
- From 1 July 2014 to 30 June 2020, the general rate was 9.50%.
- From 1 July 2021 to 30 June 2022, the general rate was 10.00%.
- From 1 July 2022 to 30 June 2023, the general rate was 10.50%.
- From 1 July 2023 to 30 June 2024, the general rate was 11.00%.
- From 1 July 2024 to 30 June 2025, the general rate was 11.50%.
- The rate reached 12% on 1 July 2025.
The sequence shows why the financial year matters. The general rate rose from 10.00% in 2021-22 to 10.50% in 2022-23, then to 11.00% in 2023-24. It increased again to 11.50% in 2024-25, before reaching 12% from 1 July 2025. For an employer checking earlier payroll, these dates help identify which percentage belongs to each period.
For example, if you’re reviewing a contribution from 2023-24, the historical rate was 11.00%. A contribution period from 2024-25 used 11.50%. The difference is relevant when checking the calculation, but the percentage alone doesn’t establish the payment amount. Eligible earnings for that period also determine the calculation.
Start a practical review with the period covered by each payroll record. Match it to the historical rate, then compare the contribution calculation with the employee’s eligible earnings. Keep the rate and period together in your records. This helps explain why separate payroll periods may show different percentages, even for the same employee.
The timeline also helps when checking payroll systems or archived reports. A report covering 2021-22 should show 10.00%, while one covering 2022-23 should show 10.50%. For 2023-24 and 2024-25, compare against 11.00% and 11.50%, respectively. These comparisons help flag a period that may need closer review.
Don’t apply a single current percentage across several financial years. The change from 11.50% in 2024-25 to 12% from 1 July 2025 illustrates why dates matter. Review each period separately, using its applicable rate and qualifying earnings. That gives a clearer basis for reconciling historical payroll records.
Super guarantee rate for 2026-27
For 2026-27, employers use the general super guarantee rate of 12.00%. The rate applies from 1 July 2026 to 30 June 2027.
The Rate for 2026-27
Australia’s general super guarantee rate is 12.00% from 1 July 2026 to 30 June 2027, according to the Australian Taxation Office. This rate matters when calculating employer super on eligible earnings during that financial year. Keep the effective dates with payroll records so each contribution can be matched to the correct period.
From 1 July 2026, employers calculate the minimum contribution as a percentage of each eligible employee’s qualifying earnings. The percentage alone doesn’t determine the payment: the earnings included in the calculation also matter. For payroll reviews, record both the applicable rate and the earnings used for each employee.
The 12.00% rate applies across the 2026-27 financial year. It doesn’t mean every employee receives the same dollar contribution, because eligible earnings vary. For example, the calculation for a part-time employee depends on that employee’s qualifying earnings, while the rate remains 12.00% for the stated period.
From 1 July 2026, payment timing changes alongside the calculation period. Employers must pay super for each payday, at the same time as salary and wages. Contributions must reach an employee’s fund within seven business days of payday. This means payroll records need to connect each payday with its super contribution and payment status.
Rate Timing Across Financial Years
The 12% rate applies throughout the 2025-26 financial year, having reached 12% on 1 July 2025. It continues at 12.00% for 2026-27, so employers should distinguish the financial years by their dates and payment rules, not by a change in the percentage.
For a payroll review, identify whether the earnings belong to 2025-26 or 2026-27, then apply the rate relevant to that period. Both years use 12%, but the payment schedule changes from quarterly contributions to payday super on 1 July 2026. Keeping the rate and payment timing separate avoids confusing a stable percentage with a new contribution process.
For the final quarter ending 30 June 2026, the quarterly payment arrangement still applies. From 1 July 2026, each payday triggers the new payment schedule. When payroll records cross that date, organise them by financial year and payday so contributions can be reconciled against the correct timeframe.
For Rockhampton employers, this distinction helps with planning payroll processes ahead of July. The rate remains 12% across both financial years, while payment timing changes on 1 July 2026. Build the date, qualifying earnings, contribution amount and payment status into the records for each relevant period. That gives a clearer audit trail for checking contributions and identifying any payroll entries that need attention.
Does the 12% super guarantee rate apply throughout the 2025-26 financial year?
Yes. Australia’s super guarantee rate reached 12% on 1 July 2025, so the 12% rate applies throughout the 2025-26 financial year. That year runs from 1 July 2025 to 30 June 2026. Employers reviewing contributions for this period should use the 12% rate, rather than an earlier historical percentage.
The rate is only one part of the calculation: payroll records also need to show the relevant earnings and period. Separate eligible ordinary time earnings from overtime, then apply the rate to qualifying earnings. A contribution total alone may not show whether you used the correct earnings base.
For a practical review, group payroll records by the 2025-26 quarter in which the earnings arose. The quarters run from July to September, October to December, January to March, and April to June. Compare the rate and earnings calculation for each period, rather than relying on a combined annual total.
Payment timing is a separate issue from the percentage. For quarters ending on or before 30 June 2026, employers generally pay contributions at least quarterly. Payment is due 28 days after each quarter ends. That includes the quarter ending 30 June 2026, even though the next financial year brings a different payment schedule.
For example, a payroll review covering the quarter ending 30 June 2026 should distinguish three details: the quarter’s eligible earnings, the 12% rate, and the quarterly payment deadline. This keeps the contribution calculation separate from the date the payment is due. It also helps explain why a correct rate does not, by itself, confirm that a contribution was paid on time.
Don’t confuse the change in payment timing on 1 July 2026 with a change to the 2025-26 rate. The 12% rate already applied from 1 July 2025. From 1 July 2026, payday super changes when employers must pay contributions, while the rate remains 12% for 2026-27.
When checking records across June and July, label each entry with its financial year and quarter or payday. Then reconcile the employee’s eligible earnings, calculated contribution and payment record. This can help identify whether a difference relates to the earnings calculation, the period or payment timing.
For a small business, reviewing one quarter at a time makes the 2025-26 position easier to follow. Start with the quarter dates, confirm the 12% rate, and check the earnings included. Keep the payment deadline visible beside the contribution record. That creates a clear basis for reviewing the final quarter before payday super begins on 1 July 2026.
Business Wise: Business Accounting and Advisory
Business Wise is a family-owned firm, and we understand the day-to-day demands of running a small business in Rockhampton. Through Business Accounting and Advisory, we work alongside business owners to make financial decisions clearer and more manageable.
For practical support with your business finances, Bookkeeping & BAS Services can help keep your records organised. Business Wise also offers Tax Advisory to help you consider the tax implications of business decisions.
Every business has its own path, and having a trusted sounding board can make the next step feel more manageable. Contact Business Wise to discuss your accounting and advisory needs.
Make payroll planning part of your business rhythm
Planning around the superannuation guarantee rate in 2026 can be a prompt to strengthen your wider financial processes, not just update payroll. Clear records help you understand how staffing costs fit into cash flow and business decisions. Build a routine that keeps payroll information organised and makes each change easier to manage.
Business Wise offers Business Accounting and Advisory, Bookkeeping & BAS Services, and Tax Advisory to support business owners with connected financial needs. If you’d like to discuss how these services may fit your business, contact Business Wise.
Take the next step at a pace that suits your business. A clearer view of your numbers can help you make thoughtful decisions and move forward with confidence.
Frequently Asked Questions
How much to pay?
For eligible employees, calculate employer super using the applicable rate and their qualifying earnings. In 2026, the general rate is 12% for both the 2025-26 and 2026-27 financial years. The amount differs by employee because qualifying earnings differ. For a payroll check, compare each employee’s earnings record with the contribution calculated for the relevant period, rather than applying one identical dollar amount to everyone.
What Is the Super Guarantee Rate?
The Superannuation Guarantee rate is the percentage employers use to calculate compulsory super contributions on eligible employees’ earnings. Employers generally pay these contributions on top of salary and wages. In practice, payroll needs to identify eligible earnings, apply the rate for the period and record the resulting contribution. The rate is a percentage, not a fixed contribution amount for every employee.
What is Australia’s superannuation guarantee rate for 2026?
Australia’s general rate is 12.00% from 1 July 2026 to 30 June 2027, according to the Australian Taxation Office. Use this rate for eligible earnings in that financial year. If you’re reviewing payroll reports, separate the 2026-27 entries from earlier periods before comparing contribution calculations. This helps avoid mixing figures from different financial years or payment schedules.
When did the 12% superannuation guarantee rate take effect?
The rate reached 12% on 1 July 2025, so it applied throughout the 2025-26 financial year. It remains 12.00% for 2026-27. For a payroll record near the June-July transition, identify the financial year the earnings belong to and the payment date. This separates the rate applying to the earnings from any changes to contribution timing.
How is the super guarantee contribution calculated on an employee’s ordinary time earnings?
Multiply the employee’s eligible ordinary time earnings by the applicable super guarantee rate. Ordinary-hours payments, bonuses and paid leave generally count, while overtime payments are excluded. Keep these pay components distinct in payroll records so the calculation uses the qualifying amount. Super is generally payable on annual leave loading unless the employer can show it compensates for lost overtime opportunities.
When must Australian employers pay super guarantee contributions in 2026?
For quarters ending on or before 30 June 2026, employers generally pay super at least quarterly, with payment due 28 days after each quarter ends. From 1 July 2026, employers must pay super for each payday, at the same time as salary and wages. Contributions must reach an employee’s fund within seven business days of payday, so payroll processes need to account for the new timing.
How does the 2026 super guarantee rate compare with the rate in previous years?
The rate rose from 10.00% in 2021-22 to 10.50% in 2022-23, then 11.00% in 2023-24 and 11.50% in 2024-25. It reached 12% on 1 July 2025 and remains 12.00% for 2026-27. When checking historical payroll, match each earnings period to its applicable rate rather than using the current percentage across every year.
Disclaimer
“The information on this website is general in nature and is provided for information purposes only. It is not legal, financial or professional advice. You should obtain specific, independent advice relevant to your circumstances.”
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