A worked example
Jess works as a graphic designer in Melbourne earning $85,000 per year. She's paid fortnightly, which works out to 26 pay periods annually. Her employer must calculate super guarantee on her ordinary time earnings.
Her annual super guarantee for 2025-26 is $85,000 × 12% = $10,200 per year.
Per fortnight, Jess earns $85,000 ÷ 26 = $3,269.23. Her super guarantee per pay is $3,269.23 × 12% = $392.31. Across 26 fortnights, that's $392.31 × 26 = $10,200.
Her employer must pay this $392.31 into her nominated super fund within 28 days after the end of each quarter. So super earned in July, August and September must be paid by 28 October. Jess can check her super balance through myGov to confirm payments arrive on time.
If Jess gets a pay rise mid-year to $90,000, the calculation adjusts immediately. From that pay period forward, her employer calculates 12% on the new rate.
State-by-state differences
The super guarantee rate is a federal requirement set by the ATO, so it applies uniformly across all Australian states and territories. Whether you work in Sydney, Perth, Hobart or Darwin, the 12% rate for 2025-26 is the same.
That said, a few variations can arise based on your situation:
- Industry awards: Some awards (like hospitality or construction) specify that super must be calculated on additional loadings or penalty rates. The base SG rate stays 12%, but what counts as ordinary time earnings can differ.
- Salary sacrifice arrangements: If you've arranged to sacrifice part of your pre-tax salary into super, this changes your taxable income but doesn't affect the employer's 12% obligation, which is still calculated on your original base salary.
- Public sector workers: Some state government employees (teachers, nurses, police) may have different super schemes like VicSuper, QSuper or CSS/PSS, but the 12% minimum still applies unless a legacy scheme provides higher rates.
- Under-18s earning less than $450/month: The SG doesn't apply if you're under 18 and work fewer than 30 hours per week, regardless of which state you're in.
Common mistakes people make
- Thinking super is calculated on take-home pay: Many people assume the 12% applies to their after-tax pay. It doesn't. Super guarantee is calculated on your gross ordinary time earnings before income tax is deducted. If you earn $80,000 gross, your employer owes $9,600 in super, even though your take-home is much less after tax.
- Forgetting the quarterly maximum contribution base: For 2025-26, the maximum super contribution base is $62,500 per quarter ($250,000 annually). If you earn above this, your employer only has to pay SG on earnings up to that cap. High earners often miss this and expect 12% on their full $300,000 salary, but the SG caps out.
- Including super in salary package totals: Job ads sometimes say 'package of $100k including super'. This means your actual salary is around $89,286 and super is $10,714. You're not getting $100k cash plus super on top. Always clarify whether a figure is inclusive or exclusive of super.
- Assuming overtime automatically gets super: Overtime and bonuses count as ordinary time earnings for most employees, so they do attract SG. But some contractors or people under certain arrangements might not have super calculated on these amounts. Check your employment type and award.
What this calculator doesn't account for
This calculator provides the standard employer super guarantee obligation. It does not account for:
- Salary sacrifice arrangements where you redirect pre-tax salary into super (your employer still owes SG on the original base, but your total super contributions increase)
- One-off bonuses, commissions or irregular payments that may be paid at different times and affect quarterly SG calculations
- Contractor vs employee distinctions. If you're a genuine contractor, you generally don't receive super guarantee and must arrange your own super
- The quarterly maximum contribution base ($62,500 per quarter). High earners above this threshold will have SG capped
- Employer contributions above the 12% minimum. Some employers pay extra super as part of enterprise agreements or attraction packages
- Division 293 tax, which applies an additional 15% tax on concessional super contributions for individuals with income above $250,000
Edge cases and nuances
A few scenarios complicate the basic calculation:
Multiple jobs: If you work two part-time jobs, each employer calculates 12% independently on what they pay you. You might end up with super contributions across two different funds. Your combined income could push you over the $250,000 Division 293 threshold, triggering extra tax, even though neither employer withheld for it.
Parental leave and government payments: Paid Parental Leave from Services Australia doesn't attract super guarantee. Only employer-funded parental leave (top-up schemes) may include super, depending on company policy.
Working holiday makers: Backpackers on 417 or 462 visas are entitled to SG just like residents, but they can claim their super back via the Departing Australia Superannuation Payment (DASP) scheme when they leave permanently. The departure tax is hefty (65% for working holiday makers), so the actual take-home is much less than the super balance.
Under-18s and the $450 threshold: The old $450/month threshold was removed from 1 July 2022. The under-30-hours rule still applies for workers under 18. A 17-year-old working 25 hours/week at a cafe gets no SG, even earning $600/month.
