Australia Superannuation Calculator

The Superannuation Guarantee (SG) requires employers to contribute 11.5% of ordinary time earnings to your super fund (rising to 12% from 1 July 2025). On a $90,000 salary, that's $10,350/year going into super on top of your wage. Super contributions are taxed at 15% going in (vs your marginal income tax rate that would have applied to the cash salary), so for higher earners super is a tax-efficient way to receive compensation.

You can salary sacrifice extra contributions on top of SG, also taxed at 15% going in (the 'concessional cap' is $30,000/year total in 2024-25, including SG). Non-concessional (after-tax) contributions face a $120k/year cap with 3-year bring-forward up to $360k allowed. Going over either cap triggers extra tax.

Starting super at 25 and contributing the SG (11.5% of $80k income) plus 3% salary sacrifice for 40 years at 7% real growth produces about $1.8 million by age 65. Starting at 35 with the same parameters produces $850k - less than half, despite saving for 75% as long. The first 10 years of compounding do most of the heavy lifting.

Super investment options matter at younger ages. Default 'balanced' fund returns roughly 7% long-term; 'high growth' returns 8-9% with more volatility. Younger members can typically afford the volatility for the higher long-term return. Switching to defensive options near retirement protects against sequence-of-returns risk.

Preservation age is 60 for anyone born after July 1964 - you cannot access super before then in normal circumstances. Conditions of release at preservation age: retirement, transition to retirement (at preservation age but still working), reaching age 65 regardless of work status, severe financial hardship (limited), terminal medical condition.

Once accessed after 60 in retirement, withdrawals are tax-free. Lump sums or income streams (account-based pensions) both work. Most retirees use an account-based pension drawing 4-6% per year, with the remainder continuing to grow inside the tax-free retirement environment. Early release for hardship is possible but heavily restricted post-COVID.

Industry funds (HostPlus, Australian Super, Aware Super, Hesta) charge 0.5-1% fees and are run for members. Retail funds (commercial) charge 1-2%+ fees and are run for shareholders. SMSF (self-managed) suits balances $500k+ where the $2-3k/year setup justifies the customisation.

Performance varies year to year but over 10+ year periods, top industry funds consistently outperform retail. The $1.50/week admin fee on a low-balance retail fund can cost 10%+ of small accounts annually. Consolidate multiple super accounts (myGov shows them) to avoid duplicate fees. Use the [Australia Pay Calculator](/australia-pay-calculator) to model salary sacrifice impact on take-home pay.