The Superannuation Guarantee, commonly known as SG, is the minimum amount of superannuation that most Australian employers must pay for eligible employees.

SG contributions help employees build retirement savings throughout their working life. These contributions are generally paid in addition to an employee’s salary or wages, although the precise arrangement will depend on the employee’s remuneration terms.

What is the current Superannuation Guarantee rate?

The Superannuation Guarantee rate is currently 12% of an employee’s qualifying earnings.

An employer may pay more than the minimum rate under an employment contract, award or workplace agreement. Contribution caps still apply to the total concessional contributions received for an employee during the financial year.

Who is eligible for Superannuation Guarantee contributions?

Most employees aged 18 or over are eligible for SG contributions, regardless of how much they earn.

Employees under age 18 are generally eligible if they work more than 30 hours in a week. Certain contractors who are paid mainly for their labour may also be treated as employees for SG purposes.

Eligibility can depend on the working arrangement, so employers and workers should check the current Australian Taxation Office requirements if they are uncertain.

When must Superannuation Guarantee contributions be paid?

From 1 July 2026, Payday Super requires employers to pay SG contributions at the same time as salary and wages.

Contributions must generally be received by the employee’s superannuation fund within seven business days of payday, although different timeframes may apply in limited circumstances.

Employees should check their payslips and superannuation account regularly to confirm that contributions are being paid correctly.

How are Superannuation Guarantee contributions taxed?

SG contributions are concessional contributions and are generally taxed at 15% within the superannuation fund.

Additional Division 293 tax may apply to certain higher-income individuals. SG contributions also count towards the member’s annual concessional contributions cap, together with salary-sacrifice contributions and personal contributions for which a tax deduction is claimed.

Can Superannuation Guarantee contributions be paid to AESF?

Eligible employer contributions may be paid to AESF, subject to the Fund’s rules and the employer’s SuperStream and choice-of-fund requirements.

Members should provide their employer with the current AESF Statement of Compliance and the information required to make contributions to their account.

For more information about SG eligibility, payment requirements and contribution caps, visit the Australian Taxation Office website and check out our article Retail Super Funds – The 3 Stages of Tax.

These contributions are classed as ‘Concessional’ contributions meaning that they are ‘before tax’ contributions. Upon entry into your Superannuation fund, they will be taxed at 15% if you earn below $250,000. If you earn more than this, tax at 30% will be applied.

If you have any questions about SG or general superannuation enquiries, contact us today and a member of our team would be happy to answer any questions you may have.

Learn more about AESF