Super is the money your employer puts away for your retirement, on top of your salary. Over a working life it usually grows into one of the biggest things you own, mostly thanks to investment returns rather than the contributions themselves.
Here's how a super balance builds up, the 2026-27 limits that matter, and two worked examples.
What goes into your super
| Contribution | 2026-27 rule | Tax in super |
|---|---|---|
| Employer super (super guarantee) | 12% of your ordinary pay, up to A$270,830 of earnings | 15% |
| Salary sacrifice | Any amount you agree with your employer | 15% |
| Personal contributions you claim as a deduction | From your bank account, then claimed in your tax return | 15% |
| After-tax contributions | Up to A$130,000 a year | None |
How the projection works
Each year: balance × (1 + return) + contributions after 15% tax × (1 + return ÷ 2) − admin feeEmployer super = 12% × salary, with salary rising each year by your pay-rise rateToday's dollars = future balance ÷ (1 + inflation)^yearsUse a return after investment fees and tax on earnings. Balanced and growth options have historically returned around 6–8% a year over long periods, but returns vary and some years are negative.
Worked examples
Example: Age 30, A$95,000 salary, A$40,000 in super, retiring at 67
Employer super this year: 12% × A$95,000 = A$11,400, or A$9,690 after the 15% contributions tax.
At a 6.5% return, 3% pay rises and a A$100 yearly fee, the balance grows to about A$2.48 million.
In today's money, at 2.5% inflation, that's about A$995,000.
Example: Same person, salary sacrificing A$5,000 a year
Concessional contributions this year: A$11,400 + A$5,000 = A$16,400, well under the A$32,500 cap.
The balance at 67 rises to about A$3.11 million, A$626,000 more, for a take-home cost of about A$3,400 a year at the 32% marginal rate.
To see what salary sacrifice does to each pay, use the Australian take-home pay calculator.
Ways to grow your super
- Check you're being paid. From 1 July 2026, employers must pay super within seven business days of each payday. You can check payments in your fund's app or myGov.
- Combine accounts. Several funds mean several sets of fees and insurance.
- Compare fees. A 0.5% a year difference in fees can cost tens of thousands of dollars over a career.
- Use unused cap. If your total balance was under A$500,000 on 30 June, you can carry forward unused concessional cap from the past five years.
How to use this calculator
- Enter your age, the age you plan to retire and your super balance today.
- Enter your salary before super.
- Add any salary sacrifice or after-tax contributions you plan to make each year.
- Adjust the return, fees, pay rises and inflation if you want to.
FAQs
How much super will my employer pay?
The super guarantee is 12% of your ordinary time earnings, on top of your salary unless your offer is a package that includes super.
What is the concessional contributions cap for 2026-27?
A$32,500 a year. It covers employer super, salary sacrifice and personal contributions you claim as a deduction. If your balance is under A$500,000 you may be able to use unused cap from earlier years.
When can I access my super?
Usually once you've reached your preservation age of 60 and retired, or from 65 even if you're still working.
Is salary sacrifice worth it?
For most people earning over A$45,000, yes: sacrificed pay is taxed at 15% in super instead of 30% or more as income. The money is locked away until retirement, though.
Sources
Results are estimates for Australian residents and aren't tax or financial advice. For your own return, check with a registered tax agent. Spotted a mistake? Tell us.