Maximum Superannuation Contribution Base 2017/2018

The maximum superannuation contribution base for the 2017/2018 year is $52,760 per quarter. This represents the maximum amount than an employer is required to pay quarterly superannuation guarantee (SG) contributions on.

Employers are not required to pay the superannuation guarantee levy on quarterly incomes that exceed the maximum superannuation contribution base.

The reason that the maximum superannuation contribution base is represented as a quarterly figure is because an employer is obligated to make superannuation guarantee contributions into an employees superannuation account on a quarterly basis.

This may be detrimental to employees with irregular incomes. Read on.

Despite the existence of the 2017/2018 maximum superannuation contribution base, an employer is not limited by this contribution base. Employer’s are able to make superannuation contributions to their employees in excess of this quarterly base; however this may give rise to reportable employer contributions.

The maximum superannuation base in indexed by Average Weekly Ordinary Time Earnings (AWOTE) and updated in February of each year.

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The table below details the history of the maximum superannuation contribution base.
 

Maximum Superannuation Contribution Base 2017/2018

 

Income Year Quarterly Income
2019/20 $55 270
2018/19 $54 030
2017/18 $52 760
2016/17 $51 620
2015/16 $50 810
2014/15 $49 430
2013/14 $48 040
2012/13 $45 750
2011/12 $43 820
2010/11 $42 220
2009/10 $40 170
2008/09 $38 180
2007/08 $36 470
2006/07 $35 240
2005/06 $33 720
2004/05 $32 180
2003/04 $30 560
2002/03 $29 220
2001/02 $27 510
2000/01 $26 300
1999/00 $25 240
1998/99 $24 480
1997/98 $23 630
1996/97 $22 590
1995/96 $21 720
1994/95 $20 780
1993/94 $20 160
1992/93 $20 000

All employer SG contributions will count towards the recipients Concessional Contribution Cap.

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Maximum Superannuation Contribution Base Quarters

 
The four quarters track the standard Australian tax quarters.

The quarters that the maximum superannuation contribution base refers to are as follows:

Quarter Period
1 1 July – 30 September
2 1 October – 31 December
3 1 January – 31 March
4 1 April – 30 June

 

Maximum Superannuation Contribution Base Example

 
The table below illustrates how two people earning an equivalent annual salary could in fact receive differing levels of employer SG contributions.

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Calculations are based on the 2017/2018 superannuation guarantee levy rate of 9.5%

Scenario 1 – Consistent quarterly income

Quarter Quarterly Income SGC Levy Rate Percentage SGC Payable
1 July – 30 Sept $50 000 9.5% $4 750
1 Oct – 31 Dec $50 000 9.5% $4 750
1 Jan – 31 Mar $50 000 9.5% $4 750
1 Apr – 30 June $50 000 9.5% $4 750
Total $200 000 $19 000

Scenario 2 – Irregular quarterly income

Quarter Quarterly Income SGC Levy Rate Percentage SGC Payable
1 July – 30 Sept $65 000 9.5% $5 012 (capped)
1 Oct – 31 Dec $40 000 9.5% $3 800
1 Jan – 31 Mar $55 000 9.5% $5 012 (capped)
1 Apr – 30 June $40 000 9.5% $3 800
Total $200 000 $17 624

As the tables above show, two individuals both earning $200,000 throughout the 2017/2018 financial year will receive different SGC payments. The individual with irregular earnings receives $1,376 less in employer SG payments than the person with regular earnings due to the quarterly Maximum Superannuation Contribution Base.

Maximum-Superannuation-Contribution-Base-2018

All employer contributions will be subject to superannuation contributions tax. A greater rate of contributions tax applies to high income earners. Click here for more.

The SGC paid into your superannuation fund should be displayed on your payslip at each pay period.

Chris Strano

Chris Strano created SuperGuy to help the average punter navigate through the complex and ever-changing super rules. It has since become one of Australia's leading digital super resources. If you’re looking for more personalised advice, have a chat with one of our experts at www.superguy.com.au/need-advice

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4 Comments

  1. Danny McGowan

    Hi Chris,

    An employer is currently only obligated to pay SG contributions on earnings in any quarter up to $54030 or $5132.85

    If an employee earns $55,000 in the quarter and 9.5% = $5225.00, what happens to the $92.15 excess? Does it go back to cash or salary and taxed or is it simply ignored?

    Reply
    • Chris Strano

      Hi Danny, there is essentially no excess. The employer is required to make 9.5% SG payments on an employees salary up to $54,030 per quarter. If an employee earns more than this, they do not receive any additional SG payments. So, I guess you could say any amount above stays in the employer’s bank account?????

      Reply
  2. peter brown

    does employers have to pay sg on or incme below threshhold or is there a minimum wage that it starts at eg 3/400 per week i am asking on behalf of an employee at a club

    Reply
    • Chris Strano

      Hi Peter,
      Generally, SG payments need to be paid to an employee who is paid $450 or more per calander month. The SG payments must be padi on top of their wage.
      Related Posts
      How does SG Work?

      Reply

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