💰 Superannuation Calculator

Super Guarantee (SG): Employers must contribute 11.5% of ordinary time earnings (2025) to employees' super funds. This mandatory contribution forms the foundation of Australia's retirement savings system, ensuring all employees build retirement savings throughout their working lives. For an employee earning $85,000 annually, the 11.5% SG equals $9,775 in annual employer contributions.

Voluntary Contributions: Beyond the mandatory SG, you can make additional contributions to boost retirement savings. These voluntary contributions significantly accelerate super growth through compound returns. Even modest regular contributions of $50-$100 monthly can add hundreds of thousands to your retirement balance over a 30-year career.

Investment Returns: Super funds invest your money in shares, property, bonds, and other assets. Historical average returns range from 5-8% annually depending on investment options chosen. Balanced funds (the default for most members) have delivered approximately 7.5% annually over the past 20 years. These investment earnings, combined with regular contributions, drive super balance growth through compound returns.

SG applies to employees earning $450 or more per month, regardless of age, employment type (permanent, casual, part-time), or hours worked. Employers must pay super quarterly to complying super funds by legislated due dates: 28th of October, January, April, and July. The $450 monthly threshold was removed from July 2022, bringing approximately 300,000 lower-income workers into the super system.

Important Note: This calculator provides projections based on your inputs. Actual retirement balances will vary depending on investment performance, contribution levels, salary changes, and super fund fees. Use these projections as a planning guide, not a guarantee.

Salary Sacrifice (Concessional Contributions): Employees can arrange with employers to direct pre-tax salary into super. These concessional contributions are taxed at just 15% within the fund (compared to marginal tax rates up to 47% including Medicare levy). For someone in the 37% tax bracket, salary sacrificing $10,000 saves $2,200 in tax annually. The concessional contributions cap is $30,000 annually (2024-25), including employer SG payments. After-Tax (Non-Concessional) Contributions: You can contribute after-tax money to super, up to $120,000 annually (2024-25). While these don't provide immediate tax deductions, they grow tax-effectively within super and eventually become tax-free in retirement phase. The "bring-forward" rule allows contributing up to $360,000 immediately. Government Co-Contribution: Low to middle-income earners making after-tax contributions may receive government co-contributions up to $500 annually. This effectively provides 50% immediate returns on contributions for eligible members earning under $43,445.

Australian super funds offer diverse investment options. Balanced Options: The default for many funds, typically 60-70% growth assets (shares, property) and 30-40% defensive assets (cash, bonds). These target moderate long-term returns (6-8% annually) with moderate volatility. Historically, balanced options have delivered around 7.5% annual returns over 20+ years. Growth and High Growth Options: Allocate 80-100% to growth assets, targeting higher long-term returns (8-10% annually) but accepting greater short-term volatility. Suitable for younger members with 20+ years until retirement who can weather market downturns. Choosing Options: Consider your age, risk tolerance, time until retirement. Younger members can generally accept more volatility for higher expected returns. Within 10 years of retirement, gradually reduce growth asset exposure to protect accumulated savings.

Contributions Tax: Concessional contributions (employer SG, salary sacrifice) are taxed at 15% within the fund, significantly below most marginal tax rates. High-income earners (above $250,000 annually) pay additional 15% Division 293 tax (30% total) on concessional contributions. Earnings Tax: Investment earnings within super are taxed at maximum 15%, compared to marginal tax rates outside super. Capital gains held over 12 months receive one-third discount (effectively 10% tax). This tax advantage compounds significantly over decades - $100,000 growing at 8% for 30 years becomes $1,006,000 in super versus $761,000 in personal investments at 37% marginal rate. Retirement Phase Tax: Once you retire and transfer super into pension phase (Account-Based Pension), investment earnings become entirely tax-free, and pension withdrawals are tax-free if you're over 60. A $500,000 pension balance earning 6% annually provides $30,000 income completely tax-free.

Super is preserved until you reach preservation age (between 55-60 depending on birth year) and retire, or reach age 65 regardless of employment status. Preservation Ages: Born before July 1960 = age 55; July 1964 onwards = age 60. At preservation age plus retirement, or automatically at 65, you can access super as lump sum or income stream. Transition to Retirement (TTR): From preservation age while still working, you can start a TTR pension, accessing 4-10% of super balance annually. This allows salary sacrificing to super while drawing income from super to maintain take-home pay. Retirement Planning: ASFA estimates comfortable retirement requires $595,000 for singles and $690,000 for couples (2024), generating income around $50,000 and $70,000 annually respectively. A 30-year-old earning $85,000 with $100,000 current super, receiving 11.5% SG only, reaches approximately $1.2 million by age 67 (assuming 7% returns). Adding just $100 monthly extra contributions increases this to $1.45 million - an extra $250,000 from $37,800 in additional contributions.

This calculator projects retirement super balances based on your current situation and assumptions. Enter Current Details: Your age, current super balance, annual salary, and expected retirement age. The calculator uses these to project SG contributions over your working life. Adjust Contribution Rate: Default is 11.5% SG. Increase this to model salary sacrifice or employer contributions above SG. Each 1% increase significantly impacts final balance over long periods. Investment Return Assumptions: Default 7% annually reflects long-term balanced fund returns. Conservative investors might use 5-6%, aggressive growth investors 8-9%. Higher returns dramatically increase projections but come with volatility. Vary this parameter to see best and worst-case scenarios. Understanding the range helps set realistic expectations and appropriate contribution levels. Experiment With Scenarios: Try different retirement ages to see the impact of working extra years. Each additional year working provides three benefits: extra contributions, extra investment growth, and fewer retirement years to fund. Model additional $50, $100, or $200 monthly contributions to quantify the long-term impact. Use results to have informed discussions with financial advisors or make personal super decisions.