1. What is Salary Less Super?

This calculator determines the base salary component when given a total compensation package that includes superannuation (Australia's retirement savings scheme). It's useful for comparing job offers and understanding salary breakdowns.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Total\ Compensation \) — Package including super (AUD/year)
• \( Super\ Rate \) — Superannuation rate as decimal (e.g. 0.105 for 10.5%)

Explanation: The formula back-calculates the base salary by removing the superannuation component from the total package.

3. Importance of Salary Calculation

Details: Understanding the breakdown between base salary and superannuation is crucial for accurate financial planning and comparing job offers in Australia where super is typically quoted as an addition to salary.

4. Using the Calculator

Tips: Enter the total compensation amount in AUD (including super) and the super rate as a decimal (e.g. 0.105 for the current 10.5% rate). The calculator will show the base salary amount excluding super.

5. Frequently Asked Questions (FAQ)

Q1: What is the current superannuation rate in Australia?
A: As of 2023, the rate is 10.5% (0.105), increasing to 11% from July 2023, and gradually to 12% by 2025.

Q2: Why calculate salary less super?
A: Some employers quote packages including super while others quote base salary plus super. This calculator helps compare offers consistently.

Q3: Is superannuation taxed differently?
A: Yes, super contributions are typically taxed at 15% when going into your fund, which is often lower than marginal tax rates.

Q4: Does this calculation work for part-time salaries?
A: Yes, simply enter the pro-rated total compensation amount for part-time work.

Q5: What about salary sacrifice arrangements?
A: This calculator doesn't account for salary sacrifice. For those arrangements, more complex calculations are needed.