SGL Parameters

The Superannuation Guarantee Legislation (SGL) Parameters are located on the SGL tab in Payroll, Maintenance, General, General Parameters.

These fields are updated automatically at the start of each financial year when the end of year upgrade has been applied and you have completed Change Tax Year.

In version 9.5 and above, once you are in the 2026-2027 Financial year, the fields in the SGL tab will be read-only. This change is for payday super but will affect all databases. Employers report SG contributions via Single Touch Payroll (STP). Ensuring that SG liability is at least 12% of qualifying earnings is critical to avoid compliance issues.

The Minimum Eligible Age is used in conjunction with the Minimum Weekly Hours. For employees under the Minimum Eligible Age super won't calculate until they exceed the Minimum Weekly Hours. For employees attached to a pay frequency other than weekly, the hours will be averaged to a weekly value. For example, fortnightly hours will be divided by two, and if this exceeds the Minimum Hours, super will calculate.

The Maximum Contribution Cap is the total or maximum earnings per year on which super is calculated. When an employee's earnings in a year exceed the Cap, super will stop for the year. The Cap is based on the earnings and not the calculated super value. Meaning that regardless of the super percentage, super will stop when the earnings reach the Cap.

For the 2026-2027 financial year, the Cap is $270,830. The Maximum Contribution Cap and the total amount of super calculated when the Cap is reached is different to the Concessional Contributions Cap. The Concessional Contributions Cap is the maximum amount of before tax contributions an employee can make to their superannuation. For more information, see Maximum contribution base.

The earnings are calculated based on the components attached to the Employer Contribution when the pay was entered. This cap operates on an annual basis, ensuring that once an employee’s superable earnings reach the annual maximum contribution base, no further SG contributions are calculated for the remainder of the year.

There are no notifications when an employee approaches or exceeds the cap. Super will automatically stop without manual intervention. Use the SGL report to verify why super hasn't been calculated and to monitor the earnings and super values.

Statutory Super Guarantee will contain the legislated super contribution. For Australian databases, this is the SGL percentage, and for New Zealand databases, this is the KiwiSaver Default rate. Currently, the legislated SGL percentage for Australian databases is 12%.

The SGL parameters can be applied in two places:

Apply SGL will be available if Apply SGL Exceptions is ticked in the Employer Contribution. If it is unticked on the Employer Contribution, Apply SGL on the employee record will be greyed out.