How Your Australian Superannuation Balance Is Projected
Superannuation is Australia's compulsory retirement savings system. Employers contribute a percentage of your earnings — the Super Guarantee (SG) — into your nominated super fund, where it's invested and taxed concessionally until you retire. This calculator compounds your contributions and investment returns year by year to project your balance at retirement.
📋 2025/2026 Key Superannuation Rates & Thresholds
| Item | 2025/2026 Value |
|---|---|
| Super Guarantee (SG) rate | 12.00% of ordinary time earnings |
| Concessional contributions cap | $30,000 / year |
| Non-concessional contributions cap | $120,000 / year |
| Contributions tax (concessional) | 15% inside the fund |
| Division 293 additional tax | +15% if income + contributions > $250,000 |
| Maximum contribution base | $62,500 / quarter ($250,000/year) |
| General transfer balance cap | $2,000,000 |
| Preservation age (born after 1 July 1964) | 60 |
🔑 Key Superannuation Terms Explained
Ordinary Time Earnings (OTE): Generally your normal salary or wages for ordinary hours of work, including most allowances, commissions, and bonuses — but not overtime. SG is calculated on OTE, not total pay.
Concessional Contributions: Before-tax contributions — employer SG, salary sacrifice, and personal deductible contributions — taxed at 15% inside the fund, generally far below most people's marginal income tax rate.
Salary Sacrifice: An arrangement where you ask your employer to redirect part of your pre-tax salary into super instead of your bank account. This can be tax-effective if your marginal tax rate is above 15%.
Maximum Contribution Base: A quarterly earnings cap above which employers are not legally required to pay SG, even though some choose to pay it on full salary by agreement.
Preservation Age: The minimum age at which you can access your super, assuming you've also met a condition of release such as retirement. For anyone born after 1 July 1964, this is age 60.
💡 Example: $90,000 Salary, Age 30, Retiring at 65
1. Annual SG Contribution: $90,000 × 12% = $10,800
2. Contributions Tax (15%): $10,800 × 15% = $1,620
3. Net Amount Invested in Year 1: $10,800 − $1,620 = $9,180
4. Over 35 years, with salary growing 3% annually and a 7% investment return (minus 1% fees), employer contributions alone — without any salary sacrifice — can compound into a substantial retirement balance, with investment growth eventually outpacing new contributions in dollar terms.
Run the calculator above with your own figures to see your personalised year-by-year projection, including how additional salary sacrifice changes the outcome.
⚠️ Important Notes
— This projection assumes a steady, constant rate of return each year — real markets are volatile, and actual results will vary significantly.
— Contributions above the $30,000 concessional cap are taxed at your marginal rate instead of 15%, plus an interest charge — this calculator flags when your modelled contributions exceed the cap.
— Insurance premiums (life, TPD, income protection) inside your fund are not modelled and will reduce your actual balance if applicable.
— High income earners should check Division 293 tax, an extra 15% on contributions if income plus concessional contributions exceeds $250,000.
— For an official projection tool, use the ASIC MoneySmart Superannuation Calculator or speak with a licensed financial adviser.