1. What is Superannuation?

Superannuation is money set aside by your employer over your working life for you to live on when you retire from work. In Australia, employers must pay superannuation contributions for most employees.

2. How Does the Calculator Work?

The calculator uses the simple superannuation 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 superannuation rate to determine your annual super contribution.

3. Importance of Superannuation Calculation

Details: Understanding your superannuation contributions helps with retirement planning and ensures your employer is contributing the correct amount required by law.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current super guarantee rate in Australia?
A: As of July 2023, the rate is 11% (0.11 in decimal). It's scheduled to increase to 12% by 2025.

Q2: Is superannuation calculated on gross or net salary?
A: Super is calculated on your ordinary time earnings (OTE), which is generally your gross salary before tax.

Q3: Are all employees entitled to superannuation?
A: Most employees earning more than $450 per month are entitled, including temporary residents. Some exceptions apply.

Q4: How often is super paid?
A: Employers must pay super at least quarterly, by the 28th day after the end of each quarter.

Q5: Can I contribute extra to my super?
A: Yes, you can make voluntary contributions (concessional or non-concessional) subject to contribution caps.