Superannuation in 2026-27: the basics that move money
Super is 12% of your pay you cannot skip, which makes the handful of choices you can make worth real money over a career.
The guarantee: 12%, and now paid with each pay cycle
Employers must pay 12% of your earnings into your fund. From 1 July 2026, Payday Super ties the payment to each pay cycle instead of each quarter, and the earnings base is called "qualifying earnings" rather than ordinary time earnings. Check your fund transactions to confirm each contribution arrives. On an $80,000 salary that is $9,600 a year on top of the $63,880 you take home.
Salary sacrifice: the 15-point discount
Extra super via salary sacrifice is taxed at 15% in the fund instead of your marginal rate. In the 30% bracket, every sacrificed $1,000 costs you about $680 of take-home (30% tax plus 2% Medicare saved) but lands $850 in the fund. The concessional cap (employer 12% + your sacrifices combined) is $32,500 in 2026-27; unused cap carries forward five years if your balance is under $500,000. Model the take-home effect in the pay calculator.
After-tax contributions and the co-contribution
Non-concessional contributions (from taxed money) have their own $130,000 cap in 2026-27. Low and middle earners get a government co-contribution of up to $500 for a $1,000 after-tax contribution, effectively a 50% instant return, phasing out by the low-$60,000s of income.
Two checks worth an hour of your life
- Fees and duplicates: multiple funds from old jobs mean multiple fee sets and insurance premiums. Consolidate via myGov, after checking insurance you would lose.
- Investment option: the default "balanced" option suits many, but decades-long horizons often justify a higher growth allocation: a one-percentage-point return difference compounds into a large sum over a career.
High earners
Above $250,000 of combined income and concessional contributions, Division 293 adds 15% tax on the contributions. Super is still concessional, just less so.
Frequently asked questions
What is the superannuation guarantee rate in 2026-27?
The rate is 12% of qualifying earnings, paid by your employer into your super fund each pay cycle under the Payday Super rules that took effect from 1 July 2026.
What is the concessional contributions cap in 2026-27?
The concessional cap is $32,500, covering the employer super guarantee and any salary sacrifice you add. Unused cap carries forward up to five years if your total super balance is under $500,000.
How does salary sacrifice to super save tax?
Salary sacrifice contributions are taxed at 15% inside the fund instead of your marginal income tax rate. For someone in the 30% bracket, that is a saving of roughly 17 percentage points on each dollar sacrificed, within the concessional cap.
Sources: ATO super guarantee and contribution cap pages; Payday Super legislation. Last updated 2026-11-04. General information, not financial advice.