Superannuation, often referred to as “super”, is a mandatory retirement savings scheme in Australia. It requires employers to contribute a percentage of your salary into a super fund, helping you build a nest egg for your later years.
Currently, the Super Guarantee rate is 11% of your ordinary time earnings (OTE). This means that for every dollar you earn your employer must contribute 11 cents into your super fund.
Understanding how to calculate super is crucial for ensuring you’re receiving the correct contributions. This guide will walk you through the process, explaining key concepts and providing helpful resources.
Key Points:
- Super Guarantee contributions are mandatory for eligible employees.
- The current Super Guarantee rate is 11% of OTE.
- OTE includes your base salary, overtime, and some allowances.
- Bonuses and commissions may or may not be included in OTE.
- You can use the Super Guarantee calculator to estimate your contributions.
Who is Eligible for Super Guarantee Contributions?
Generally, you’re entitled to Super Guarantee contributions if you meet the following criteria:
- You are over 18 years old.
- You are a resident of Australia.
- You earn more than $450 (before tax) per month.
- You are not a self-employed contractor.
Calculating Your Superannuation:
The Super Guarantee is calculated by multiplying your OTE by 11%. OTE refers to your ordinary time earnings, which typically include:
- Base salary
- Overtime payments
- Allowances such as shift loadings and commissions
However, some payments are excluded from OTE, such as:
- Bonuses
- Expenses
- Certain allowances
If you’re unsure whether a particular payment is included in your OTE, it’s best to check with your employer or refer to the ATO website.
Using the Super Guarantee Calculator:
Industry Super Australia provides a handy Super Guarantee calculator to help you estimate your contributions. Simply enter your income and select your employment status. The calculator will then display the estimated amount your employer should be contributing to your super fund.
Here’s an example:
- Income: $70,000 per year
- Employment status: Full-time
The calculator shows that your employer should be contributing $7,700 per year into your super fund.
Additional Resources:
- Industry Super Australia: https://www.industrysuper.com/understand-super/super-guarantee
- ATO Superannuation Guarantee: https://www.ato.gov.au/Super/Super-guarantee/
- ZipRecruiter Superannuation Salary: https://www.ziprecruiter.com/Salaries/Super-Salary
Remember, the Super Guarantee is just one way to save for retirement. You can also make voluntary contributions to your super fund or invest in other retirement savings vehicles.
By understanding how to calculate super and taking proactive steps to boost your retirement savings, you can ensure a more financially secure future.
Which presidential candidate would be more strict on TikTok after the election is unknown. Both have conveyed contradictory messages: in March, Donald Trump backtracked on his calls for a ban on TikTok, claiming that doing so would only make Facebook bigger—an “enemy of the people.” The anti-TikTok bill was hailed by Biden’s National Security Council as “an important and welcome step.” However, his campaign just joined TikTok in an effort to pique the interest of younger voters.
But as TikTok has grown in influence and usership in the U.S., backlash has also ballooned. In March, the U.S. House of Representatives passed a bill giving ByteDance two choices: sell the app, or face a ban in the U.S. The bill has received wide bipartisan report: New York Democrat Chuck Schumer indicated that working on the bill was a priority, and President Biden said he would sign the bill if it landed on his desk.
In a TIME ideas essay, Scott Nover stated, “Chopping through the connective tissue of the app will sever important ways that Americans—especially young Americans—are speaking at a time when those conversations are as rich as ever.”
Bloomberg wrote that ByteDance’s internal figures had not been independently audited. A representative for ByteDance declined to comment: “We don’t comment on market speculations,” they wrote.
In the event that the bill passes the Senate, ByteDance faces several major obstacles to actually sell their prized app. The Chinese government has signaled that it will not allow a forced sale of TikTok. And given that the app is likely worth tens of billions of dollars, that price tag is only feasible for a handful of American tech giants like Google or Meta—which brings antitrust concerns into play.
You and your super fund
Age: (min: 18, max: 75)
Income: ($ p.a., before tax and super, max: $1,000,000)
Desired retirement age: (min: 60, max: 75)
Super balance(s): ($) (max: $5,000,000)
Employer contribution: (%) (min: 10.5%, max: 25%)
Do you make additional contributions?
Amount:
Amount:
Fee level:
Contribution fee: (%) (max: 10%)
Admin fees: ($ p.a.) (max: $1,000)
Indirect cost ratio: (% p.a.) (max: 5%)
Investment option:
Investment return: (% p.a.) (max: 20%)
Tax on earning: (% p.a.) (max: 15%)
Investment fees: (% p.a.) (max: 5%)
Estimated super balance (including fees) (age ):
Fees paid:
Estimated super balance (including fees) (age ):
Fees paid:
Withdrawal/termination fee: (if applicable, max: $0.00)
Fee level:
Contribution fee: (%) (max: 10%)
Admin fees: ($ p.a.) (max: $1,000)
Indirect cost ratio: (% p.a.) (max: 5%)
Investment option:
Investment return: (% p.a.) (max: 20%)
Tax on earning: (% p.a.) (max: 15%)
Investment fees: (% p.a.) (max: 5%)
Episode 3: How much super you need to retire – and how to get it
FAQ
How much is the super now?
How much is the current super?
How much is super calculated?
How much super are you supposed to pay?
Should I put extra money in my Super?
It’s always helpful to get a picture of where you stand to know whether you need to take action to put some extra in your super. Average super balance needed at 67 for a comfortable retirement is $690,000 for a couple and $595,000 for a single person.
How much is a 67-year-old super balance needed for a comfortable retirement?
Average super balance needed at 67 for a comfortable retirement is $690,000 for a couple and $595,000 for a single person. Canstar’s Research shows a shortfall in average super balances at 30 of about $26,000 for men and $31,500 for women. If your super balance isn’t on track, there are things you can do to help bump it up.
How much superannuation do you need at 67?
The average superannuation balance needed at age 67 for a comfortable retirement is $690,000 for a couple and $595,000 for a single person, according to the latest Retirement Standard document from the Association of Super Funds of Australia (ASFA). That’s assuming they withdraw their super as a lump sum and receive a part of the Age Pension.
How much can I contribute to my Super?
The combined total of your employer and salary sacrificed contributions must not be more than $27,500 per financial year. You can carry forward any unused concessional contributions. Unused amounts are available for a maximum of five years. You can also make contributions to your super from your after-tax pay.