The way the cap is applied will change under Payday Super.

The current quarterly maximum SG contributions base will be replaced with an annual Maximum Super Contributions Base (MSCB).

Once an employee’s qualifying earnings for the financial year reach the annual MSCB, the employer is not required to make further SG contributions for that employee for the remainder of the financial year.

You may need to review your payroll system rules to ensure the MSCB is applied correctly on an annual, per-employee basis.

The legislation also sets out a new formula for the calculation of the MSCB which will accommodate future increases in SG rates and contributions caps. The formula is: 

• 100 x Concessional Contributions Cap / SG Rate 

With an expected 1 July 2026 increase to the concessional contributions cap, the calculation is as follows: 

• 100 x $32,500 / 12 = $270,833* 

Therefore, SG contributions are payable on qualifying earnings up to $270,833* per employee, per financial year with no SG obligations on earnings above this limit. 

*Expected 2026/27 financial year shown 

Please note: The Maximum Super Contributions Base (MSCB) sets the required level of superannuation under legislation. Employers may have separate employment or remuneration arrangements that provide for contributions above the MSCB. Contributions above the MSCB may be subject to different tax treatment for employees.