In this topic
- Introduction
- Maximum Contributions Base (MCB): What’s Automated
- What Is the MCB?
- How the Maximum Contributions Base (MCB) Works Under Pay Day Super
- Example
- Do I Need to Do Anything?
Introduction
This topic explains what the Maximum Contributions Base (MCB) is and how Aussiepay applies and tracks it automatically under Pay Day Super.
Disclaimer: This documentation outlines how Aussiepay supports Qualifying Earnings (QE) configuration for Pay Day Super. It is provided for general information purposes only and does not constitute legal, tax, or financial advice. You should seek advice specific to your organisation’s obligations from the Australian Taxation Office (ATO) or your accountant. While your payroll consultant can assist with system configuration and operational guidance within Aussiepay, they are not authorised to provide advice on your legal or compliance obligations under Australian superannuation law.
Maximum Contributions Base (MCB): What’s Automated
The Maximum Contributions Base (MCB) is an annual earnings cap above which employers are not required to pay the minimum superannuation guarantee (SG).
The good news is that Aussiepay calculates and applies the MCB automatically. There is no action required from you. Tracking and applying the cap is handled as part of your managed payroll processing, though we recommend reviewing this from time to time.
This topic explains what the MCB is, how it operates under Pay Day Super, and how Aussiepay manages it for you.
What Is the MCB?
The Maximum Contributions Base (MCB) is an annual earnings threshold set by the Australian Taxation Office (ATO). Employers are only required to pay superannuation guarantee (SG) contributions on earnings up to this cap. Any earnings above the MCB are excluded from the SG calculation.
The MCB is indexed annually by the ATO. Aussiepay automatically applies the current MCB value as part of your payroll processing, so no manual updates are required.
How the Maximum Contributions Base (MCB) Works Under Pay Day Super
From 1 July 2026, Pay Day Super requires super contributions to be paid on each payday rather than quarterly. This changes how the MCB cap is applied:
- The MCB cap is applied per pay period, rather than assessed only at quarter end
- Aussiepay tracks cumulative earnings across the financial year and applies the MCB cap during each pay run
- Once an employee reaches the MCB for the financial year, no further earnings are included for SG calculation purposes
- As a result, Super Liability (L) also stops accruing once the MCB threshold has been reached
| Task | Automated? | Notes |
|---|---|---|
| Apply the correct MCB cap per pay period | Yes | Applied automatically during each pay run |
| Track cumulative earnings across the year | Yes | Aussiepay tracks progress toward the MCB threshold |
| Stop earnings from contributing to SG once MCB is reached | Yes | No further earnings are included for SG calculation |
| Update the MCB value when the ATO re-indexes it | Yes | Automatically updated each year |
| Report capped values in STP submissions | Yes | Included in STP reporting as part of standard processing |
NOTE: Aussiepay manages the Maximum Contributions Base (MCB) for you.
Example
If the annual MCB is $250,000 and an employee earns $12,000 in a fortnightly pay period:
- Only the portion of earnings up to the remaining MCB balance will count toward super calculations for that period
- Once the employee’s cumulative earnings reach $250,000 for the financial year, no further earnings are included for super calculation purposes
- Aussiepay applies this cap automatically, with no manual calculation needed
NOTE: MCB values are indexed annually by the ATO. The figures above are for illustrative purposes only.
Do I Need to Do Anything?
No. As a Managed Payroll customer, the Maximum Contributions Base (MCB) is taken care of for you. Your only responsibility is to ensure your Qualifying Earnings (QE) paycode mappings are correctly reviewed and confirmed in the STP2 Config screen. Once confirmed, the MCB cap is automatically applied on top of those mappings as part of your payroll processing.
