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