What is the Superannuation?
Superannuation is Australia's compulsory retirement system. Employers must contribute the Super Guarantee — now 12% of ordinary time earnings — into your fund. Contributions and earnings are taxed at a concessional 15%, far below most marginal rates.
You can add salary sacrifice contributions, taxed at 15% instead of your marginal rate, up to the concessional cap — $32,500 for 2026–27, indexed each year.
Formula & worked example
After 15% contributions tax: × 0.85
Balance = (Balance + net contribution) × (1 + return − fees)
Worked example: $95,000 salary at 35 with 12% SG plus 3% salary sacrifice, starting from $85,000, 7% returns and 0.85% fees. By 67 the balance reaches roughly $2.28 million — the Super Guarantee compounding over 32 years does most of the work — supporting about $91,000 a year at a 4% drawdown.
How to use this superannuation calculator
- Enter your salary and the current SG rate (12% from July 2025).
- Add any salary sacrifice — taxed at 15% rather than your marginal rate.
- Check your fees; they compound against you over decades.
- Preservation age is 60 for anyone born after June 1964.
Smart tips
- Salary sacrifice is highly efficient for anyone on the 30% marginal rate or above — you swap that rate for 15%.
- Fees matter enormously. A 1% difference over 30 years can cost more than $200,000 on a typical balance.
- Consolidate multiple super accounts; duplicate fees and insurance premiums quietly destroy balances.
- Check your investment option — many default MySuper options are more conservative than a young member needs.
- The government co-contribution adds up to $500 for lower-income earners making after-tax contributions.
Frequently asked questions
What is the Super Guarantee rate?
12% of ordinary time earnings from 1 July 2025, having risen progressively from 9.5%.
How much super do I need to retire?
There is no official figure. ASFA publishes a widely used Retirement Standard with target lump sums for a "comfortable" and a "modest" retirement, assuming you own your home; it is revised each quarter, so check the current edition rather than a number quoted second-hand.
Is salary sacrifice into super worth it?
Usually yes above the 30% marginal rate, since contributions are taxed at just 15%. The concessional cap is $32,500 for 2026–27, including employer SG.
When can I access my super?
At preservation age (60 for those born after June 1964) if retired, or unconditionally at 65.
Want the theory behind the numbers? Read our Australia super guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.