Superannuation Rate Australia 2025-26: The 12% Super Guarantee Explained
CalculatorQuest Editorial Team
Australian Tax & Finance Specialists
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 | Tax Saving |
|---|---|---|---|
| Up to $45,000 | 15% | 16% | Modest |
| $45,001 – $120,000 | 15% | 30% | 15% saving |
| $120,001 – $180,000 | 15% | 37% | 22% saving |
| $180,001 – $250,000 | 15% | 45% | 30% saving |
| Above $250,000 | 30% (Div 293) | 45% | 15% saving |
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?
According to ASFA and the ATO's benchmarks, here are rough targets by age for a comfortable retirement:
| Age | Benchmark Balance (approx.) |
|---|---|
| 30 | $50,000 – $60,000 |
| 40 | $135,000 – $160,000 |
| 50 | $270,000 – $320,000 |
| 60 | $450,000 – $550,000 |
These are rough guides. Your target depends on your desired retirement income and lifestyle. Use our retirement calculator for a personalised projection. Also 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