Super Guarantee (SG)

The Super Guarantee (SG) is Australia's compulsory employer superannuation contribution system. Under this system, employers are legally required by law to contribute a minimum percentage of each eligible employee's ordinary time earnings into that employee's nominated super fund. The SG rate is set by the federal government and is subject to periodic increases.

For the 2026/27 financial year, the Super Guarantee rate is fixed at 12.0% of an employee's ordinary time earnings, up from the 11.5% rate in 2024/25. This means that if you earn $100,000, your employer must contribute an additional $12,000 into your super fund annually. The SG contribution is in addition to your take-home salary, and employers who fail to make timely super contributions face severe penalties from the Australian Taxation Office (ATO).

Real-World Example If Emma earns a salary of $90,000, her employer is legally required to contribute an additional $10,800 (12.0% of $90,000) to her superannuation fund each quarter. This contribution is taxed at the concessional rate of 15% inside the super fund, leaving $9,180 to compound tax-effectively for Emma's retirement.