For financial year 18-19, this works out to a maximum contribution of a whopping $5,132.85 a quarter!
More specifically, the maximum contribution base states the maximum income per quarter that your employer is required to match with the 9.5% super guarantee. Any income over this level doesn’t legally require further super contributions, though there is no prohibition against doing so. The precise level of the maximum contribution base is indexed annually in line with Average Weekly Ordinary Time Earnings, usually in February.
Superannuation & Retirement Newsletter
Click Here for monthly tips and insights on budgeting, saving and shopping straight to your inbox.
Maximum contribution base limits for previous years
|Income year||Income per quarter|
Source: Australian Taxation Office
How the maximum contribution base works
As an example, if you earnt $60,000 plus super in a quarter of the financial year 2017-2018, your employer would not have to pay the full 9.5% super guarantee on that amount. Instead, they would only be legally required to pay at most $5,012.20 a quarter, or 9.5% of the maximum contribution base for that income year which was $52,760.
Of course, in many cases individuals earning high incomes like these receive a salary package with specific super benefits. Nevertheless, their employer needs to ensure that they are still earning the equivalent of at least 9.5% of their income up to the maximum contribution base as super.
For more about super, and to compare super funds, click here.
Compare superannuation with Canstar
The following table contains details of the superannuation funds rated by Canstar based on someone aged 40-49. This table has been sorted by one-year performance (highest to lowest).
Please note that the performance information shown in the table is for the investment option used by Canstar in rating of the superannuation product.