Superannuation Rate Australia 2025-26: The 12% Super Guarantee Explained
From 1 July 2025, Australian employers must pay a minimum 12% Super Guarantee (SG)on top of eligible employees' wages. This is the final step in the legislated schedule that started at 9.5% back in 2014.
Use our Australian pay calculator to see how super affects your overall remuneration package, or the retirement calculator to project your super balance.
Super Guarantee Rate History
| Financial Year | SG Rate |
|---|---|
| 2021-22 | 10.0% |
| 2022-23 | 10.5% |
| 2023-24 | 11.0% |
| 2024-25 | 11.5% |
| 2025-26 onwards | 12.0% (final rate) |
How Much Super Does Your Employer Pay?
Your employer must contribute at least 12% of your ordinary time earnings (OTE). OTE includes your base salary, allowances, over-award payments, and some bonuses. Here are some examples for 2025-26:
| Annual Salary | Employer Super (12%) | Total Package |
|---|---|---|
| $50,000 | $6,000 | $56,000 |
| $70,000 | $8,400 | $78,400 |
| $100,000 | $12,000 | $112,000 |
| $120,000 | $14,400 | $134,400 |
| $150,000 | $18,000 | $168,000 |
Concessional Contributions Cap: $30,000
All concessional (pre-tax) contributions must stay within the $30,000 cap per financial year. This includes:
- Employer SG contributions (12% of salary)
- Salary sacrifice contributions you arrange with your employer
- Personal deductible contributions you make and claim as a tax deduction
Example: If you earn $200,000, your employer pays $24,000 in SG. That leaves only $6,000 cap room for salary sacrifice. Exceeding the cap means excess contributions are taxed at your marginal rate.
Learn more about maximising your pre-tax contributions in our salary sacrifice guide.
Tax on Super Contributions
Concessional contributions are taxed at 15%within the super fund — much lower than most people's marginal income tax rate. For high earners (income above $250,000), an additional 15% "Division 293 tax" applies to concessional contributions, effectively making the rate 30% — still attractive compared to the 45% top marginal rate.
| Income Level | Super Tax Rate | Marginal rate incl. Medicare | Tax Saving |
|---|---|---|---|
| 18,201 – 45,000 | 15% | 18% | 3c per $1 |
| 45,001 – 135,000 | 15% | 32% | 17c per $1 |
| 135,001 – 190,000 | 15% | 39% | 24c per $1 |
| 190,001 – 250,000 | 15% | 47% | 32c per $1 |
| Above 250,000 (Division 293) | 30% | 47% | 17c per $1 |
Non-Concessional (After-Tax) Contributions
You can also make non-concessional (after-tax) contributions to your super from your take-home pay. The annual cap is $120,000 (2025-26), or up to $360,000 in a single year using the 3-year bring-forward rule (subject to your total super balance).
After-tax contributions are not taxed again when you withdraw them in retirement (earnings in the fund are taxed at 15%).
How Much Super Should You Have?
The right balance depends on the retirement income you want, when you plan to stop work and whether you own your home. Use our retirement calculator to project your own balance, and see our guide: How much super should I have at my age?
Calculate Your Super and Take-Home Pay
See exactly how the 12% super guarantee affects your total package and retirement savings.
Sources: ATO Super Guarantee · Last updated: February 2026