In this topic
- Introduction
- Maximum Contributions Base (MCB): What’s Automated
- What Is the MCB?
- How 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 ePayroll applies and tracks it automatically under Pay Day Super.
Disclaimer: This documentation explains how ePayroll handles Qualifying Earnings configuration for Pay Day Super. For regulatory advice on your specific obligations under Australian superannuation law, consult the Australian Taxation Office (ATO), your accountant, or a payroll professional.
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: ePayroll calculates and applies the MCB automatically. You don’t need to do anything — the system handles all the tracking and cap application for you.
This page explains what the MCB is, how it works under Pay Day Super, and what ePayroll does automatically.
What Is the MCB?
The Maximum Contributions Base is an ATO-set annual earnings threshold. Employers are only required to pay the SG on earnings up to this cap. Earnings above the MCB are excluded from the SG calculation.
The MCB is indexed annually by the ATO. ePayroll automatically uses the current MCB value — you do not need to update it manually.
How MCB Works Under Pay Day Super
Under Pay Day Super (from 1 July 2026), super contributions must be paid on each payday rather than quarterly. This changes how the MCB cap is applied:
- The MCB cap is applied per pay period, not just at the end of each quarter
- ePayroll tracks cumulative QE across the financial year and applies the MCB cap automatically each pay run
- Once an employee’s QE reaches the MCB for the financial year, it remains static for the rest of the year — no further QE is added
- Super Liability (L) also stops once the MCB is reached
| Task | Automated? |
|---|---|
| Apply the correct MCB cap per pay period | ✅ Yes — automatic |
| Track cumulative QE across the year | ✅ Yes — automatic |
| Stop QE growth once MCB is reached | ✅ Yes — automatic |
| Update the MCB value when ATO re-indexes it | ✅ Yes — automatic |
| Report the capped QE in STP submissions | ✅ Yes — automatic |
NOTE: You do not need to configure, calculate, or manually apply the MCB in ePayroll. It is fully automated.
Example
If the annual MCB is $250,000, and an employee earns $12,000 in a fortnightly pay period:
- Only the amount up to the remaining MCB allowance counts as QE for that period
- Once the cumulative QE for the year reaches $250,000, QE remains at that value for the rest of the financial year
- ePayroll applies this cap automatically — no manual calculation needed
Note: MCB values are updated annually by the ATO. The above is illustrative only.
Do I Need to Do Anything?
No. MCB is fully automated in ePayroll. Your only responsibility is to ensure your QE paycode mappings are correctly confirmed in STP2 Config — the MCB cap is then applied automatically on top of those mappings.
See Configuring Qualifying Earnings: Step-by-Step for how to confirm your paycode mappings.
