Concessional Contributions

The following provides a detailed discussion of the different forms of concessional contributions able to be made. These consist of:

• Employer super guarantee (SG) payments
• Salary sacrificed amounts paid into superannuation
• Voluntary personal concessional contributions

Mandated employer super guarantee (SG) payments

Employers are required to pay a mandated super guarantee contribution on behalf of their employees. From 1 July 2024, the required SG contribution that employers are required to pay will increase to a rate of 11.5% of an employee’s ordinary earnings and paid to their superannuation fund of choice. These amounts are currently required to be paid within 28 days after the end of each quarter (March, June, September and December). However, the government has proposed that employers be required to pay their SG payments based on employee paydays, rather than quarterly, under reforms designed to reduce the incidence of unpaid SG contributions. This measure is proposed to take effect from July 2026, giving businesses a number of years to prepare for the change. This law has not been passed to date.