1. What is Superannuation?

Superannuation is money set aside while you're working so you'll have money for retirement. In Australia, employers must pay superannuation contributions for most employees.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

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

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

3. Importance of Superannuation Calculation

Details: Understanding your super contributions helps with retirement planning and ensures you're receiving the correct amount from your employer.

4. Using the Calculator

Tips: Enter your annual salary in AUD and the super rate as a decimal (e.g., 0.105 for the current 10.5% rate). Both values must be positive numbers.

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 as decimal), increasing to 11% from July 2023, and gradually to 12% by 2025.

Q2: Is super paid on overtime?
A: Generally yes, super is paid on ordinary time earnings which includes overtime in most cases.

Q3: What's the maximum super contribution base?
A: For 2022-23, the maximum quarterly super contribution base is $60,220 (annual $240,880). No compulsory super is required on earnings above this.

Q4: Are there tax benefits to salary sacrificing into super?
A: Yes, salary sacrificed contributions are generally taxed at 15% (up to concessional contributions cap), which may be lower than your marginal tax rate.

Q5: Can I access my super before retirement?
A: Generally no, except in specific circumstances like severe financial hardship, terminal illness, or under the First Home Super Saver Scheme.