1. What is Superannuation?

Superannuation is a compulsory system of placing a minimum percentage of an employee's income into a fund to support their financial needs in retirement. In Australia, employers must pay superannuation contributions on behalf of their employees.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Salary \) — Annual salary in Australian dollars
• \( Super\,Rate \) — The super guarantee rate as a decimal (e.g., 0.105 for 10.5%)

Explanation: The calculation multiplies the annual salary by the current super guarantee rate to determine the annual super contribution amount.

3. Importance of Super Calculation

Details: Understanding super contributions helps with retirement planning, ensuring compliance with legal requirements, and comparing employment packages.

4. Using the Calculator

Tips: Enter salary as a positive number in AUD. The super rate should be between 0 and 1 (e.g., 0.105 for the current 10.5% rate).

5. Frequently Asked Questions (FAQ)

Q1: What is the current super guarantee rate in Australia?
A: As of 2023, the rate is 10.5% (0.105), increasing to 11% in 2023-24 and 12% by 2025.

Q2: Is super paid on top of salary or included?
A: Typically, super is paid in addition to the salary, unless specified otherwise in an employment contract.

Q3: Are there salary caps for super contributions?
A: Yes, there are concessional contribution caps ($27,500 in 2023-24) that may affect high-income earners.

Q4: Do all employees get super?
A: Most employees earning more than $450 per month are eligible, including casual and part-time workers.

Q5: When is super paid?
A: Employers must pay super at least quarterly, by the 28th day after the end of each quarter.