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 a percentage of your earnings into your super account.

2. How Does the Calculator Work?

The calculator uses the simple superannuation equation:

Where:

• \( Salary \) — Your annual salary in Australian dollars
• \( Super\,Rate \) — The super guarantee rate as a decimal (e.g., 0.11 for 11%)

Explanation: The equation calculates how much your employer should contribute to your super fund based on your salary and the current super guarantee rate.

3. Importance of Superannuation Calculation

Details: Understanding your super 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., 0.11 for 11%). 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 11% (0.11), rising 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 there caps on super contributions?
A: Yes, there are contribution caps that may affect tax treatment. Check with the ATO for current limits.

Q4: Can I make additional contributions?
A: Yes, you can make voluntary contributions (concessional or non-concessional) beyond what your employer pays.

Q5: When can I access my super?
A: Generally when you reach preservation age (between 55-60 depending on birth date) and retire, or meet other specific conditions.