One of the lesser-known but potentially significant Payday Super changes is how the Maximum Contributions Base (MCB) will work from 1 July 2026.
Current System:
MCB applies quarterly, limiting SG obligations per quarter.
New System:
MCB becomes annual, based on:
Basic concessional cap ÷ SG rate
For 2026–27:
- Concessional cap: $32,500
- SG rate: 12%
- Annual MCB: $270,830
Why This Matters:
Employees with:
- Irregular bonuses
- Commission spikes
- High variable earnings
may receive more SG overall than under quarterly rules.
Potential Benefit:
Employees previously disadvantaged by quarterly bonus spikes may gain additional SG.
Potential Risk:
Higher SG may reduce room for:
- Salary sacrifice
- Personal deductible contributions
- Carry-forward concessional planning
Speak With Our Team
Changes to the Maximum Contributions Base under Payday Super may create both opportunities and risks for employees with higher or irregular income.
If you receive bonuses, commissions, or variable earnings, contact us to discuss how the new rules may affect your concessional contribution strategy and available cap space.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.