SGC Superannuation

The Superannuation Guarantee (SG) is the compulsory amount that an employer must pay into the default or nominated superannuation fund in respect of an employee as part of their employment conditions.

The Superannuation Guarantee Charge (SGCC Superannuation) is a penalty payable by the employer if the mandatory Superannuation Guarantee (SG) payment is not made by the due date and/or not paid into the employee’s nominated fund.

The Superannuation Rate or SG Rate required to be paid is calculated as a percentage of the employee’s wage.

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%


Maximum SG Payments

The maximum earnings that an employer is required to make SG payments on is calculated on a quarterly basis. The quarterly income cap amount is

How to Manage Your Super Without Paying a Financial Adviser

Download our 6-step checklist & take control of your super

Year Quarterly Income Annualised Amount
2018-19 $54 030 $216 120 p.a.
2017-18 $52 760 $211 040 p.a.
2016-17 $51 620 $206 480 p.a.
2015-16 $50 810 $203 240 p.a.
2014-15 $49 430 $197 720 p.a.
2013-14 $48 040 $192 160 p.a.

For more information about the Maximum Contribution Base, please click here.

Have You Read My Other Posts Yet?

This means that SG payments are not required to be made on the income that exceeds the above quarterly income amount.

For example, if a person was on an annual salary of $240,000 p.a., paid in equal amounts of $60,000 per quarter, the maximum SG that the employer would be required to make is $20,531.40 p.a. in the 2018-19 financial year. This is calculated as $54,030 x 9.5% x 4

SGC Calculator

Below is an interactive calculator that can be used to calculate what your SGC payments should be based on your wage and the financial year. Keep in mind that this calculator has limitations, as it does not take into account the Maximum SG Payments noted above and may not account for situations where earnings are irregular in each pay period.


Due Dates for SG Payments


SGC Superannuation Quarter Payment Due Before
1 July – 30 Sept 28 October
1 Oct – 31 Dec 28 January
1 Jan – 31 Mar 28 April
1 April – 30 Jun 28 July


Tax On SGC Superannuation Contributions

SG Employer contributions are a Concessional Contribution. All Concessional Contributions incur Contributions Tax of 15%. However an additional 15% tax is payable on

Concessional Contributions for high income earners….. read more.

SG Exemptions

The following is a list of circumstances where SG payments are not required to be made by an employer

  • Under age 18 – Part time employees working less than 31 hours/week
  • An employee is paid less than $450 in one month
  • Resident employees paid by non-resident employers for work completed outside of Australia (unless covered under agreement)
  • Non-Resident employees paid for work completed outside of Australia
  • Employees paid for work on a private or domestic basis for less than 31 hours/week, such as a gardener, housekeeper, nanny, etc.


Age Limit for SG Contributions

There is no longer an age limit for employees to be eligible for SG contributions.

Have You Read My Other Posts Yet?

SG Contributions on Salary Sacrificed amounts

An employer is not required to make Superannuation Guarantee payments on amounts that are salary sacrificed to superannuation. This is because SG requirements are made in respect of an employees’ Ordinary Time Earnings (OTE). OTE’s are effectively reduced when a salary sacrifice arrangement is entered into by the amount that has been salary sacrificed.

In saying this, the employer is not prohibited from making SG contributions on the amount salary sacrificed.

However, there may be instances where, under some form of an agreement, the employer is required to make SG payments on the pre-salary sacrifice salary.

Contributions tax also needs to be considered.

Superannuation Guarantee Charge (SGC Superannuation)

SGC Superannuation payments are payable if the employer has not made the required SG payment into the nominated superannuation account by the cut-off date.

In such an instance:

  • Interest is payable on the unpaid SG amount of 10% p.a. and an administration fee is also incurred. However, in these cases, the SG amount is calculated on the employee’s wages, as opposed to their OTE
  • Other penalties may apply
  • SGC payments are generally not a tax deductible expense to the employer (unlike SG contributions)


Choice of Fund

Certain employees are able to choose where their SG contributions are made using a Superannuation Choice Form. i.e. they are not restricted by the preferred or default fund of the employer.

However, many employees such as government employees, defined benefit members or employees under certain employment agreements may be unable to choose their own fund.

You should discuss this with the relevant personal at your place of employment or inquire with the Australian Securities and Investment Commission (ASIC) if you are still unsure.

If your payslip says that your SGC fund details are pending, then this is an indication that your employer is waiting for you to provide them with details of your choice of fund.

If you would like anything clarified or have any further questions about SGC Superannuation or any other topics, please do not hesitate to contact me by leaving a comment in the section below and I will endeavour to respond within 24 hours.

Chris Strano

Hi, I hope you enjoyed reading this article. If you want my team and I to help with your retirement planning, click here. If you prefer a DIY approach, then check out the SuperGuy HUB. Thanks for stopping by - Chris.

More Posts





    i have a sueprannuation SGC
    and i’d like to konw my superannuation number
    how can i get that?

    • Chris Strano

      You should contact your superannuation provider for your member number. If you are looking for the Superannuation Product Identification Number (SPIN) you should also contact your superannuation provider.

  2. FAYE


    • Chris Strano

      Hi Faye, I think you may have confused who I am.
      I simply write blog articles on superannuation rules. That’s it.
      I am not a superannuation fund and do not receive any super contributions for anyone.
      SGC stands for ‘Superannuation Guarantee Contributions’. This means that mandatory super payments have been paid somewhere, but SGC is not the super fund, it simply refers to the payment.
      The employer should have adequate information on where super payments have been made. I believe it is their obligation to keep record of this.
      Hope this helps,

  3. Khim prasad rontija

    I have a superannuation SGC and I’d like to know my superannuation member number . How can I get that ?

  4. Norhidayati Haduri

    I’m so confused still. So, does SGC Super go into our account, or the employer’s?

    • Chris Strano

      SGC super always goes into the employees account. It is paid by an employer into the employees account.

  5. Gabi

    How can i get SGC membership number… and how can I contact my provider?

    • Chris Strano

      You should speak with your employer (or previous employer) and ask them where they are paying your super to. Then contact that super fund with your personal details and they should be able to give you your membership number.

  6. Greg Button

    Hi Chris,
    My employment contract is for 24 hours a week but I am often asked to work extra days (paid at ordinary rates not overtime). My employment contract says they will only pay SGC up to the amount equivalent to 24 hours work. I was under the impression the SGC has to be paid on all wages earnt. Is that correct?
    Regards, Greg.



  1. What Does SGC Mean On A Payslip? - - […] it is likely that you receive a payslip each pay period and might be wondering what the term SGC…

Submit a Comment

Your email address will not be published. Required fields are marked *