1. What is Superannuation?

Superannuation is a retirement savings scheme in Australia where employers contribute a percentage of an employee's earnings into a super fund. These contributions are in addition to wages and help Australians save for retirement.

2. How Does the Calculator Work?

The calculator uses the simple superannuation formula:

Where:

• Annual Salary — Employee's yearly earnings before tax (in AUD)
• Super Rate — The percentage of salary contributed (as decimal, e.g., 0.105 for 10.5%)

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

3. Importance of Superannuation Calculation

Details: Calculating superannuation helps employees understand their retirement benefits, allows employers to budget for staff costs, and ensures compliance with Australia's super guarantee laws.

4. Using the Calculator

Tips: Enter annual salary in AUD (before tax) 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 superannuation calculated on gross or net salary?
A: Super is calculated on ordinary time earnings (OTE), which is generally the gross salary before tax.

Q3: Are there limits to super contributions?
A: Yes, there are concessional (before-tax) contribution caps ($27,500 in 2022-23) and non-concessional (after-tax) caps.

Q4: Do all employees get super?
A: Generally, employees earning more than $450 per month receive super, with some exceptions.

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