The maximum contribution base¶

Most employees earn well under the level where this rule matters, but for high earners there is a ceiling on how much super an employer is required to pay. That ceiling is called the maximum contribution base.

It is worth understanding the idea even if none of your employees are near it, because it changes how you read super for a high earner — and because the rule itself is changing.

In one line

The maximum contribution base is an upper limit on the earnings an employer must pay super guarantee on — above it, super guarantee is not compulsory.

Why this matters¶

If you run payroll for a high earner, you could otherwise assume super keeps building on every dollar of their earnings. It does not. Knowing the cap exists stops you from either worrying you have underpaid, or overpaying compulsory super where it is not required.

What you will learn¶

What the maximum contribution base is
What happens to super guarantee above the cap
That the cap is changing under Payday Super

Understanding the concept¶

The maximum contribution base is a limit set by the ATO on the amount of earnings an employer has to pay super guarantee (SG) on. It applies per employee.

Up to the cap, the employer works out SG in the normal way. Once an employee's earnings for the relevant period reach the cap, SG is no longer compulsory on earnings above it. In other words, the cap puts a lid on the required employer super for a very high earner.

An employer can still choose to pay super on earnings above the cap if they want to — it just is not something the SG rules require. The cap only affects what is compulsory, not what is allowed.

The exact dollar amount is set by the ATO and is indexed, so it moves over time. Rather than memorise a figure, treat the cap as a concept: there is a level above which compulsory super stops, and you check the current amount with the ATO when you need it.

For accountants & bookkeepers

Historically the maximum contribution base has been a per-quarter earnings limit, tied to the quarterly super guarantee system. It is not being removed under Payday Super, but the way it works is changing. From 1 July 2026, as super moves from quarterly to each payday, the ATO applies the cap on an annual basis rather than per quarter — once an employee's qualifying earnings reach the annual maximum contribution base, the employer can stop paying compulsory super guarantee for that employee for the year. Always confirm the current amount and the current basis against the ATO before relying on either.

Example¶

Jordan is a high earner. Early in the period, Jordan's earnings are below the maximum contribution base, so the employer pays super guarantee on those earnings in the normal way.

Later, Jordan's earnings pass the cap. From that point, super guarantee is no longer compulsory on the earnings above the cap. The employer could choose to keep paying super on the extra, but the SG rules do not require it. The cap has capped the compulsory employer super, not Jordan's pay.

Common mistakes¶

Assuming compulsory super keeps building on every dollar a high earner makes.
Memorising an old dollar figure — the amount is indexed and changes.
Thinking the cap has been removed under Payday Super — it has not; the basis is changing.
Forgetting an employer may still choose to pay super above the cap.

How this works in myaccountant¶

In the app — myaccountant works super out on the correct earnings each pay and applies any current cap that limits the compulsory super guarantee for a high earner, so you do not have to track the threshold by hand.

Key points¶

The maximum contribution base is an upper limit on earnings that attract compulsory super.
Above the cap, super guarantee is not compulsory.
An employer may still choose to pay super above the cap.
The dollar amount is set by the ATO and is indexed, so it changes — check the current one.
The cap is not removed under Payday Super, but from 1 July 2026 it applies on an annual basis rather than per quarter.

Learn next¶

General information only — not tax, super or financial advice.

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