Superannuation Guide 2024-25

Understand Australia's superannuation system, contribution rates, and how super affects your take-home pay and retirement savings.

What is Superannuation?

Superannuation (super) is Australia's retirement savings system. Your employer must contribute a percentage of your ordinary time earnings to your super fund, and there are tax benefits designed to encourage additional voluntary contributions.

Source: ATO Superannuation Information

Super Guarantee Rate

12%

2024-25 financial year

Minimum Earning Threshold

$450

per month (before tax)

Super Guarantee Contributions

Your employer must contribute at least 12% of your ordinary time earnings to your super fund if you:

Source: ATO Super Guarantee Information

  • Are 18 years old or over
  • Earn more than $450 per month (before tax)
  • Are paid for work done in Australia
Annual Salary Super Guarantee (12%) Tax on Super (15%) Net Super
$50,000 $6,000 $900 $5,100
$75,000 $9,000 $1,350 $7,650
$100,000 $12,000 $1,800 $10,200
$150,000 $18,000 $2,700 $15,300
Tax on Super

Employer super contributions are taxed at 15% within your super fund. This is generally lower than your marginal tax rate, making super tax-effective for most people.

Contribution Limits 2024-25

Source: ATO Super Contribution Caps 2024-25

Concessional Contributions

$30,000

Annual limit for pre-tax contributions including:

  • Employer super guarantee
  • Salary sacrifice contributions
  • Personal tax-deductible contributions

Non-Concessional Contributions

$120,000

Annual limit for after-tax contributions including:

  • Personal contributions (after-tax)
  • Spouse contributions
  • Government co-contributions

Types of Super Contributions

Employer Contributions

Super Guarantee

Mandatory 12% of ordinary time earnings, taxed at 15% in your super fund.

Salary Sacrifice

Additional pre-tax contributions you arrange with your employer, also taxed at 15%.

Personal Contributions

Deductible

Personal contributions you claim as tax deductions, taxed at 15% in super.

Non-Deductible

After-tax personal contributions, no tax deduction but no additional tax in super.

High Income Earners

If you earn over $250,000, you may pay additional tax on your super contributions:

Source: ATO Division 293 Tax Information

Income Level Additional Tax Total Tax on Super Description
Under $250,000 0% 15% Standard rate
Over $250,000 15% 30% Division 293 tax
High Income Super Tax

If your income plus concessional super contributions exceed $250,000, you'll pay an additional 15% tax on your super contributions (Division 293 tax), bringing the total tax rate to 30%.

Government Incentives

Super Co-contribution

The government may contribute up to $500 if you:

  • Make after-tax super contributions
  • Earn less than $58,445
  • Have 10% or more income from employment/business

[ATO Government Super Contributions]

Low Income Super Tax Offset

Receive up to $500 if your income is under $37,000:

  • Effectively refunds 15% tax on super
  • Automatic payment to your super
  • Based on concessional contributions

Accessing Your Super

Generally, you can access your super when you:

Reach Preservation Age

Born before 1 July 1960: age 55
Born after 30 June 1964: age 60

Must also retire or reduce work hours.

Turn 65

Can access super regardless of employment status once you turn 65.

Special Circumstances

Early release may be available for severe financial hardship, medical treatment, or other compassionate grounds.

Super and Tax Planning

Salary sacrificing into super can reduce your taxable income and increase your retirement savings. Instead of paying your marginal tax rate (up to 47%), you pay only 15% tax on salary sacrificed super contributions.

You can claim a tax offset of up to $540 for contributions made to your spouse's super fund (if their income is below $37,000). Plus, they may be eligible for the government co-contribution.

If you haven't used your full concessional contribution cap in previous years, you may be able to carry forward unused amounts for up to 5 years (if your super balance is below $500,000).
Calculate Your Super

Use our calculator to see how much super guarantee you'll receive and the tax implications.

Calculate My Super