Super Guarantee

Employers are required under Superannuation Guarantee legislation, to make super contributions on behalf of their employees, and at the correct rate. Anyone with a super account can also make voluntary contributions to their account.

Super Guarantee: Payment timing (payday super)

From 1 July 2026, super contributions are generally required to be paid more often, at the same time as your wages (known as ‘payday super’).

How it used to work

Super only had to be paid into your fund every 3 months
That made it harder to spot late or missing payments

How it works now

Super contributions must generally be paid in line with your pay cycle (weekly, fortnightly or monthly)
You should see money going into your super fund more regularly, not just once a quarter

How to check your super

Look at your payslip for the “super” or “superannuation” line
Log in to your super fund and check recent contributions match your payslip
If it looks wrong, ask your employer, then contact the ATO or your super fund if you’re still concerned

Super Guarantee: Thresholds, caps and limitations

There are some limits and terminology to be aware of:

Concessional (salary sacrifice) contributions

Concessional contributions

This means the before-tax contributions made to a super fund – these are taxed at a lower (i.e. concessional) rate of tax. The tax rate depends on your income plus your before-tax super contributions. Generally, if your income plus super contributions is:

under $250,000 p.a. you pay 15% tax;
$250,000 p.a. or more you pay 30% tax.

Concessional contributions cap

There is a limit to the amount you can contribute to super from your before-tax income in order to benefit from the concessional tax rate.

The cap – which includes contributions made by your employer under the Super Guarantee scheme – is set at $32,500 p.a. (2026/27 figure). This figure is indexed each year in line with the average weekly ordinary time earnings, rounded down to the nearest $2,500.

If total after-tax contributions exceed the cap, you will be required to pay a higher tax rate on the excess amount and you may have to pay an excess charge as well.

3 steps to salary sacrifice

See how easy it could be to take advantage of salary sacrifice tax savings.

Non-concessional (after tax) contributions

Non-concessional contributions

Non-concessional means contributions made to a superannuation fund from after-tax income. These contributions are not taxed in the super fund.

You may be able to get a tax deduction for non-concessional contributions.

Non-concessional contributions cap

Non-concessional (after-tax) contributions are made from income that has already been taxed.

There are limits on how much you can contribute each year:

From 1 July 2026, the non-concessional contributions cap is $130,000 per year. If you exceed your non-concessional contributions cap, you may need to pay additional tax.
Your non-concessional cap will be $0 for a financial year if your total super balance is at or above the transfer balance cap ($2.1 million) at 30 June of the previous financial year.
If your total after-tax contributions exceed the cap, you will be required to pay a higher rate of tax on the excess amount and you have to pay a charge as well.

If you are under 75 and eligible, you may be able to contribute more using the bring-forward rule.

How to make non-concessional contributions

See the 4 steps to making an after-tax contribution and claiming a deduction on your tax.

Maximum Superannuation Contribution Base

The maximum super contribution base is the maximum amount of your earnings your employer must pay super guarantee on.

From 1 July 2026, the maximum super contribution base is $270,830 per year. This means your employer does not have to pay super guarantee on earnings above this amount. Once your earnings reach $270,830 in a financial year, your employer can stop paying super guarantee for the rest of that year.

With Payday super now in place, super contributions are generally paid at the same time as your wages, and the maximum contribution base is applied across the full financial year.

Super Transfer Balance Cap

The transfer balance cap is the maximum amount of super you can move into the tax‑free retirement phase. From 1 July 2026, the general transfer balance cap is $2.1 million.

Your personal transfer balance cap may be lower than $2.1 million, depending on when you started your first retirement income stream and how much of your cap you’ve already used.

How the transfer balance cap affects you

1. Limits on moving money into retirement phase

Your situation	What happens
Less than $2.1 million in super	You can transfer up to your personal transfer balance cap into the tax-free retirement phase
More than $2.1 million in super	You can’t move your full super balance into the tax-free retirement phase

2. If you reach or go over your transfer balance cap

Your situation	What happens
At your transfer balance cap	After-tax (non-concessional) contributions not allowed Bring-forward rule can’t be used You may not be eligible for co-contributions or the spouse contribution tax offset
Over your transfer balance cap	The excess must be removed from retirement phase Extra tax may apply Any remaining amount stays in accumulation phase, where earnings are usually taxed