If you are an employee, it is likely that you receive a payslip each pay period and might be wondering what the term SGC means on your payslip.

SGC or SG stands for Superannuation Guarantee contributions. Superannuation Guarantee contributions are compulsory contributions made by your employer to your superannuation fund.

It is a legal requirement for your employer to make SGC payments into your superannuation account by the due dates.

The amount of SGC that you should receive is based on a percentage of your salary or wage, subject to certain conditions.
 

What Does SGC Mean On A Payslip?

 
The amount shown as being paid as SGC on your payslip is the amount that was paid into your chosen superannuation fund for the pay period noted on your payslip. If you have not yet notified your employer of your super fund of choice, it may say SGC Fund Details Pending on your payslip.

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A common misconception is that SGC is the name of your super fund. This is incorrect. SGC is the type of the contribution being made, not the name of the fund that the contribution is being made to.

To find out where your SGC payments are being made to, you should contact your employer or payroll officer. They will be able to tell you the name of your superannuation fund and your superannuation account or member number.
 

SGC Super Rates

 
The SGC super rates are standard for all employees in Australia. However, certain occupations or employment contracts may mean that you have a higher SGC super rate than what is detailed below, or you may have the ability to make additional voluntary super contributions.

Detailed below are the past, present and planned future SG rates:
 

Financial Year SGC Superannuation Rate (%)
2012-13 9.00%
2013-14 9.25%
2014-15 9.50%
2015-16 9.50%
2016-17 9.50%
2017-18 9.50%
2018-19 9.50%
2019-20 9.50%
2020-21 9.50%
2021-22 10.0%
2022-23 10.5%
2023-24 11.0%
2024-25 11.5%
2025 onwards 12.0%

 

SGC Calculator

 
The SGC calculator below will help you determine how much SGC you should receive from your employer. Keep in mind that this SGC calculator should be used as a guide only, as it does not take into account irregular income earnings or the maximum superannuation contribution base.


 

Maximum Superannuation Contribution Base

 
Due to the maximum superannuation contribution base, high income earners will not always receive superannuation guarantee contributions equal to 9.5% of their salary.

The maximum superannuation contribution base limits the level of salary that an employer is required to make SCG contributions on.

The maximum superannuation contribution base is indexed annually and applies to quarterly income earnings, as shown below:
 

Income Year Quarterly Income
2018-2019 $54 030
2017-2018 $52 760
2016-2017 $51 620
2015-2016 $50 810
2014-2015 $49 430
2013-2014 $48 040
2012-2013 $45 750
2011-2012 $43 820

 
This means that if you were to earn more than $54,030 over a three month period, you would only receive SG payments equal to 9.5% of $54,030 ($5,133) for that quarter.

Furthermore, high-income earners may be required to pay an additional contributions tax.

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Hopefully this has given you a greater understanding of what SGC means on a payslip and the superannuation guarantee rules in general.

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Chris Strano

Chris Strano is a specialist independent superannuation author for SuperGuy.com.au - one of Australia's leading superannuation information resources.

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