When the maximum contribution base applies
The maximum contribution base is the upper limit of your employee's earnings for each financial year for which you need to pay super guarantee. If your payments of qualifying earnings to your employee reach the maximum contribution base, you can stop paying super guarantee contributions for the employee for that year.
How much is the maximum contribution base?
For 2026–27, the maximum contribution base is $270,830.
If you have paid $270,830 of qualifying earnings to an employee for the 2026–27 year, you do not need to make super guarantee contributions for that employee for any additional qualifying earnings paid to them for the remainder of the financial year.
The maximum contribution base does not affect any additional super contributions you are required to pay under an award or enterprise agreement.
How the maximum contribution base is calculated
The maximum contribution base for a financial year is calculated using the following formula (rounded down to the nearest $10 multiple):
Concessional contributions cap × 100 ÷ charge percentage
The concessional contributions cap is the basic concessional contributions cap for the financial year in which the payment is made. From 1 July 2026, the concessional contributions cap is $32,500.
The charge percentage is the super guarantee rate, which is currently 12%.
Therefore the maximum contribution base for 2026–27 is:
$32,500 × 100 ÷ 12 = $270,830
Example: employee's qualifying earnings exceed the maximum contribution base
Michael's base pay includes $225,000 of qualifying earnings each financial year. His employer, CompanyA, runs on a monthly pay cycle and pays Michael on the first Monday of each month.
For the 2026–27 financial year, the maximum contribution base is $270,830.
On 3 May 2027, Michael receives his usual pay. On 17 May Michael receives a performance bonus of $100,000. His year-to-date (YTD) qualifying earnings are $306,250, exceeding the maximum contribution base by $35,420. CompanyA pays super guarantee up to the point that Michael's qualifying earnings reach the maximum contribution base.
Working out how much super guarantee to pay
Michael's base pay
Michael receives $18,750 of his base pay on 3 May. To work out the amount of super guarantee, CompanyA multiplies this by the super guarantee rate of 12%:
Super guarantee = $18,750 × 12% = $2,250
At this point, CompanyA has paid him $206,250 of his base pay:
$18,750 × 11 payments (July 2026 to May 2027) = $206,250
Michael's bonus
Michael receives his $100,000 bonus on 17 May. CompanyA pays super guarantee contributions up to the point that Michael's qualifying earnings for the financial year reach the maximum contribution base. As the bonus takes Michael over the maximum contribution base, CompanyA does not need to pay any super guarantee on the excess bonus, or any other qualifying earnings for the rest of the financial year.
$270,830 (maximum contribution base)
− $206,250 (year-to-date qualifying earnings)
= $64,580 (portion of bonus that does not exceed the maximum contribution base)
Super guarantee = $64,580 × 12% = $7,749.60
Total super guarantee contributions for May payments
CompanyA makes a super guarantee contribution of $2,250 for the qualifying earnings paid on 3 May and $7,749.60 for the qualifying earnings paid on 17 May.
$2,250 (super on base pay for 3 May)
+ $7,749.60 (super on qualifying portion of bonus)
= $9,999.60
No super guarantee on further qualifying earnings
As the maximum contribution base has been exceeded, CompanyA does not need to pay super guarantee on any further payments of qualifying earnings to Michael in the 2026–27 financial year.
CompanyA may still have to pay additional super for Michael under an award or enterprise agreement.
STP reporting
CompanyA can also stop reporting qualifying earnings for Michael in Single Touch Payroll for the rest of the financial year.
The company will still need to submit Single Touch Payroll reports for:
- any additional super amounts (for example, under an award or enterprise agreement) paid for Michael, under Super Liability
- amounts earned, under other relevant labels.
Next financial year
The following payday of 5 July 2027 is in the 2027–28 financial year. CompanyA will need to restart paying super guarantee contributions for Michael from this payday, if the company is not otherwise exempt.
End of exampleSuper guarantee opt out for high-income earners
An employee with multiple employers who is likely to exceed the maximum contribution base for a financial year may apply for an SG shortfall exemption certificate. If successful, you will receive a copy of the certificate from both your employee and us.