Superannuation in Australia
Superannuation is compulsory retirement saving. In 2026-27 your employer pays a 12% super guarantee into your fund, which is taxed at 15% on entry and locked away until preservation age. On a $65,000 salary that is $7,800 a year, per ATO rates.
By Calculatax
Most funds are regulated by APRA. The ATO regulates self-managed funds and runs the tax and contribution rules. Super sits alongside the income tax and pay tools in our Australian tax & pay calculators.
At a glance 2026-27
- Super guarantee rate
- 12% of qualifying earnings
- Maximum super contribution base
- $270,830 a year
- Concessional contributions cap
- $32,500 (2025-26: $30,000)
- Non-concessional contributions cap
- $130,000 (2025-26: $120,000)
- Division 293 threshold
- $250,000
- Government co-contribution
- Up to $500; thresholds $49,293 and $64,293
- General transfer balance cap
- $2.1 million (2025-26: $2.0 million)
- Preservation age
- 60 if born from 1 July 1964
- Age Pension age
- 67
Start here
Super guarantee calculator
Super guarantee on your salary or package.
How super works: money in, tax inside the fund, access at retirement
Super has three stages.
- 1
Contributions go in
Most money goes in through your employer. You can add more as salary sacrifice, as a personal contribution you claim as a tax deduction, or from after-tax money. The government adds small top-ups for lower incomes.
- 2
The fund invests them and pays tax
Your fund also charges fees and may deduct insurance premiums from your balance.
- 3
You draw the money out
You can do this once you meet a condition of release.
When you change jobs, your existing fund normally follows you unless you choose another one. Super left in old accounts can be found and combined through ATO online services in myGov.
The 12% super guarantee
The superannuation guarantee (SG) is 12% of qualifying earnings in 2026-27, the same rate as 2025-26. The ATO lists 12% for every year from 1 July 2027 as well.
Payday Super started on 1 July 2026. Employers now pay SG with each pay, and contributions are due in your account within 7 business days after payday. Qualifying earnings replaced ordinary time earnings as the base.
| Step | Amount | Running total |
|---|---|---|
| Super guarantee$300 a fortnight | +$7,800 | $7,800 |
| Contributions tax15% | −$1,170 | $6,630 |
| Added to the balance | $6,630 | |
If the same $7,800 were paid as extra salary, income tax and the Medicare levy would take $2,521, leaving $5,279. The LITO phase-out pushes the marginal rate at $65,000 to 33.5%, which widens the gap.
Contribution caps for 2026-27
Caps limit how much can go into super each year at low tax rates. The concessional contributions cap is $32,500 and the non-concessional contributions cap is $130,000.
| Cap or threshold | 2026-27 | 2025-26 |
|---|---|---|
| Concessional contributions cap | $32,500 | $30,000 |
| Non-concessional contributions cap | $130,000 | $120,000 |
| Bring-forward, total super balance below $1.84m | $390,000 over 3 years | $360,000 over 3 years (below $1.76m) |
| Non-concessional cap is nil | Total super balance $2.1m or more | Total super balance $2m or more |
What counts towards each cap, and carrying amounts forward
Concessional contributions are employer SG, salary sacrifice and personal contributions you claim as a deduction. Non-concessional contributions come from after-tax money you don't claim.
Unused concessional cap amounts from up to 5 earlier years can be carried forward if your total super balance was under $500,000 at the previous 30 June. Each unused amount expires after 5 years.
When you can reach your super (preservation age 60)
- Preservation ageIf you were born from 1 July 1964. Older people had a lower preservation age, starting from 55 for those born before 1 July 1960.
- 60
- Age Pension ageServices Australia says there are no plans to change it.
- 67
Reaching 60 isn't enough on its own. You also need a condition of release. The ATO's common conditions of release (opens in a new tab) are retiring after preservation age, or starting a transition to retirement income stream.
Leaving a job on or after 60, turning 65 and death also count. Many people use their super to start an account-based pension, which pays a regular income from the balance.
Super calculators
Each tool uses 2026-27 rates and shows a worked example before you enter anything.
- Super guaranteeThe 12% your employer owes per pay and per year, with the $270,830 maximum base.
- Super calculatorProjects your balance at 67 as today's dollars, with fees, returns and extra contributions.
- Superannuation rateThe current SG rate, its history and how it applies to overtime, bonuses and leave.
- Division 293 taxThe extra 15% on concessional contributions when income passes $250,000.
- Super co contributionThe government top-up of up to $500 for after-tax contributions.
- Super balance by ageATO median balances by age group and sex, with averages by state.
- Payday Super checkerThe super due on a payday, and when it should reach the fund.
- Salary sacrifice superTake-home pay, tax saved and a concessional cap check.
- Retirement income calculatorHow long a balance lasts at different spending levels.
How does a super contribution reduce tax?
A concessional contribution is taxed at 15% in the fund instead of at your marginal rate. At $65,000, salary sacrificing $2,000 cuts income tax and Medicare levy by $670. The fund deducts $300 contributions tax, so you're $370 better off overall. The saving grows with your marginal rate and stops at the $32,500 cap.
How does a super contribution work?
Your employer, you or the government pays money into your fund, which invests it until you can access it. Employer SG of 12% arrives within 7 business days of each payday. You can add salary sacrifice or after-tax amounts. Concessional contributions are capped at $32,500 and non-concessional contributions at $130,000 for 2026-27.
How does a super tax deduction work?
You pay after-tax money into super, then claim it as a deduction in your tax return. Before claiming, you lodge a notice of intent with your fund and receive its acknowledgement. The fund then taxes the contribution at 15%. The amount counts towards the $32,500 concessional cap together with your employer's SG.
How do I calculate superannuation in Australia?
Multiply your qualifying earnings by 12%. A $65,000 salary gives $7,800 a year, or $300 a fortnight. Deduct 15% contributions tax ($1,170) to find what reaches your account: $6,630. If your pay is described as a package including super, divide the package by 1.12 first to find the salary.
Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.
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