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.
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.
Compare superannuation with Canstar
If you’re comparing Superannuation funds, the comparison table below displays some of the products currently available on Canstar’s database for Australians aged 30-39 with a balance of up to $55,000, sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Use Canstar’s superannuation comparison selector to view a wider range of super funds.
Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology that matches the age group you selected.