What is the Super Guarantee rate for 2025-26?

The Super Guarantee (SGC) rate for the 2025-26 financial year (1 July 2025 – 30 June 2026) is 12%. This is the final rate in the gradual increase schedule legislated in 2021. It stays at 12% permanently: SGC rate history: 2021-22: 10.0% 2022-23: 10.5% 2023-24: 11.0% 2024-25: 11.5% 2025-26: 12.0% ← FINAL RATE (stays here permanently) How SGC works: ✓ Your employer must pay 12% of your ordinary time earnings into your super fund ✓ It is paid ON TOP OF your salary — not deducted from it ✓ Paid at least quarterly (many employers pay monthly) ✓ Tax in the super fund: 15% contributions tax on the SGC amount Ordinary time earnings includes: salary, wages, casual loading, some allowances Excludes: overtime pay, some expense reimbursements Example: A$80,000 salary SGC = A$80,000 × 12% = A$9,600/year Your employer's total cost = A$80,000 + A$9,600 = A$89,600 SGC tax (15% inside fund) = A$1,440 Net into your fund = A$8,160 Check your super: Compare your fund statements with your expected contributions. If your employer is not paying correctly, report to the ATO.

What is salary sacrifice and how does it save tax?

Salary sacrifice (also called 'salary packaging' for super) lets you redirect pre-tax salary directly into your super fund, taxed at only 15% instead of your marginal income tax rate. How it works: 1. You agree with your employer to reduce your gross salary by X dollars 2. Employer pays that X into your super fund instead 3. The X is taxed at 15% inside the fund (concessional contribution) 4. Your income tax is calculated on the REDUCED salary Tax saving per dollar of salary sacrifice: At 32.5% marginal rate: save 32.5% − 15% = 17.5 cents per dollar At 37% marginal rate: save 37% − 15% = 22 cents per dollar At 45% marginal rate: save 45% − 15% = 30 cents per dollar Example: A$100,000 salary, sacrifice A$10,000: Without SS: Tax on A$100,000 = A$24,967 + Medicare With SS: Tax on A$90,000 = A$21,717 + Medicare Income tax saving: A$3,250 Income tax in fund (15%): A$1,500 Net tax saving: A$3,250 − A$1,500 = A$1,750 on A$10,000 sacrifice Take-home reduction: Gross reduced by A$10,000 BUT tax reduced by A$3,250 Actual take-home reduction: only A$6,750 So you put A$10,000 into super by sacrificing only A$6,750 in take-home Concessional cap: SGC + salary sacrifice ≤ A$30,000 in 2025-26. If you exceed the cap, the excess is taxed at your marginal rate (minus a 15% offset). Note: NI/social contributions don't apply in Australia (only income tax). Super is completely separate from income tax.

How is Australian income tax calculated for 2025-26?

Australia uses a progressive income tax system for FY 2025-26 (1 July 2025 – 30 June 2026): Income tax brackets (residents): $0 – $18,200: 0% (tax-free threshold) $18,201 – $45,000: 19% $45,001 – $120,000: 32.5% $120,001 – $180,000: 37% $180,001+: 45% Medicare Levy: 2% on most incomes above ~$26,000 (phases in for lower incomes) Low Income Tax Offset (LITO): Up to $37,500: $700 offset (reduces tax to zero below about $21,885) $37,501 – $45,000: phases out at 5 cents per dollar $45,001 – $66,667: phases out at 1.5 cents per dollar Above $66,667: no LITO Examples: $50,000: Tax = $5,092 + ($50,000 − $45,000) × 32.5% = $5,092 + $1,625 = $6,717 → minus LITO $325 → plus Medicare $1,000 = $7,467 net $80,000: Gross tax = $5,092 + ($80,000 − $45,000) × 32.5% = $16,467 → no LITO → Medicare $1,600 = $18,067 net $120,000: Gross tax = $5,092 + $24,375 = $29,467 → no LITO → Medicare $2,400 = $31,867 net Note: Super contributions are NOT taken from your income for tax purposes — they're paid on top by your employer. But 15% contributions tax is paid inside the super fund.

How much super do I need to retire comfortably in Australia?

The Association of Superannuation Funds of Australia (ASFA) publishes quarterly Retirement Standard figures: 2025-26 ASFA Retirement Standard (annual figures): Comfortable retirement (single): A$52,085/year → lump sum ~A$595,000 Comfortable retirement (couple): A$73,337/year → lump sum ~A$690,000 Modest retirement (single): A$33,134/year → lump sum ~A$100,000 Modest retirement (couple): A$47,696/year → lump sum ~A$100,000 Note: These figures assume a partial Age Pension supplement. Age Pension thresholds (2025-26 approx): Full pension: Assets below ~A$295,500 (single, homeowner) Partial pension phases out above these assets Payment: ~A$28,000/year (single) at full rate Projection rules of thumb: · 12% SGC on A$80,000 salary for 30 years @7% = ~A$1.15M · This supports ~A$50,000/year for 25 years in retirement · Add Age Pension = comfortable retirement achievable Conservation of Retirement (CoR) rule: Many advisers suggest withdrawing 4% of super balance per year in retirement: A$500,000 super → A$20,000/year (+ Age Pension) A$750,000 super → A$30,000/year (+ Age Pension) A$1,000,000 super → A$40,000/year (+ Age Pension) Superannuation in retirement: From preservation age (60 for most): access super tax-free Transfer Balance Cap: A$1.9M can move to pension phase (earnings tax-free in pension phase) Above TBC: excess remains in accumulation phase (15% tax on earnings)

What is the concessional contributions cap and what happens if I exceed it?

The concessional contributions cap for 2025-26 is A$30,000 per year. Concessional contributions include: ✓ SGC (employer 12%) ✓ Salary sacrifice contributions ✓ Personal contributions claimed as a tax deduction (for self-employed or employed people who lodge a 'Notice of Intent to Claim') Concessional contributions are taxed at 15% inside the fund (contributions tax). High-income earner surcharge (Division 293): If income + concessional contributions > A$250,000: Additional 15% tax on concessional contributions (total 30%) ATO assesses this via tax return What happens if you exceed the cap: 1. ATO notifies you via MyGov 2. Excess is included in your assessable income 3. Taxed at your marginal rate 4. You get a 15% offset (for the tax already paid in fund) 5. You can elect to release up to 85% of the excess from super Example at A$120,000 salary exceeding cap: SGC: A$14,400 Extra sacrifice: A$20,000 Total concessional: A$34,400 (A$4,400 over cap) Excess taxed at 32.5% minus 15% offset = 17.5% on A$4,400 = A$770 penalty Unused cap carry-forward: From 2019-20: Unused concessional cap can be carried forward for 5 years Requirement: Super balance below A$500,000 Allows larger catch-up contributions in future years This calculator shows the concessional cap remaining after your SGC and any extra contributions to help you plan.

AUSTRALIA SUPERANNUATION CALCULATOR 2025-26

Calculate your superannuation contributions and projected balance for FY 2025-26. SGC rate is 12% from 1 July 2025 (final permanent rate). Enter salary, current super balance, age, planned retirement age, and expected return rate to get: annual and monthly SGC, income tax (ATO 2025-26 rates with LIT...

SUPER & SALARY

Super Guarantee Rate 2025-26: 12%

This is the final SGC rate — stays at 12% permanently from 1 July 2025

Annual Salary (before tax, A$)

Current Super Balance (A$)

Current Age

Retire Age

Return Rate %

Extra Concessional Contributions (A$/yr)salary sacrifice or personal deductible

SGC SUPER CONTRIBUTION — ANNUAL

A$9,600

PER MONTH

A$800

INCOME TAX

A$18,067

TAKE-HOME/MO

A$5,161

Gross SalaryA$80,000

SGC Super (12% — on top)A$9,600

Income Tax + Medicare− A$18,067

Take-Home SalaryA$61,933

Projected super at age 65: A$1.35M (7% pa, 30 years)

LIVE DIAGRAM

PROJECTED SUPER AT RETIREMENT

A$1.35M

SGC A$9,600/yr · 30yr projection · 12% SGC only

SALARY SPLIT

Take-home salaryA$61,933 (77%)

Income Tax + MedicareA$18,067 (23%)

Super (SGC 12%)A$9,600 (12%)

SUPER BALANCE GROWTH

Y17

Y30

✔ A$20,400 concessional cap remaining (of A$30,000/yr)

SGC A$9,600 + extra A$0 = A$9,600 used

FY 2025-26 · SGC 12% · ATO rates · Projection is illustrative

Created with❤️byeaglecalculator.com

SGC RATE HISTORY & SUPER QUICK REFERENCE

Financial Year	SGC Rate
2021-22	10.0%
2022-23	10.5%
2023-24	11.0%
2024-25	11.5%
2025-26	12.0% ✓ Final rate

Salary	SGC (12%)	Tax + Medicare	Take-Home/mo
A$30,000	A$3,600	A$1,942	A$2,338
A$40,000	A$4,800	A$4,367	A$2,969
A$50,000	A$6,000	A$7,467	A$3,544
A$60,000	A$7,200	A$11,067	A$4,078
A$70,000	A$8,400	A$14,617	A$4,615
A$80,000	A$9,600	A$18,067	A$5,161
A$100,000	A$12,000	A$24,967	A$6,253
A$120,000	A$14,400	A$31,867	A$7,344
A$150,000	A$18,000	A$43,567	A$8,869
A$180,000	A$21,600	A$55,267	A$10,394
A$200,000	A$24,000	A$64,667	A$11,278

FY 2025-26 · SGC is on top of salary · ATO income tax + Medicare Levy + LITO applied

HOW TO USE

1
Enter your annual salary (before tax). The SGC (Super Guarantee Contribution) of 12% is automatically calculated — this is the minimum your employer must pay into your super fund from 1 July 2025. It is paid on top of your salary, not from it. Enter your current super balance and your current age and planned retirement age.
2
Set your expected annual investment return (default 7% — balanced fund historical average). Optionally enter extra concessional contributions (salary sacrifice or personal deductible contributions). The concessional cap for 2025-26 is A$30,000/year — the calculator shows how much cap remains after SGC and extra contributions.
3
Results show: annual SGC, monthly SGC, income tax + Medicare Levy, monthly take-home salary, and projected super balance at retirement. The salary split bar shows the three-way split between take-home, income tax, and super. Switch to the Balance Projection tab to see year-by-year super growth and a return rate comparison table (5%, 7%, 9%, 11%).
4
Switch to the Salary Sacrifice tab to compare take-home with and without salary sacrifice. Enter your salary and the amount you want to sacrifice — it shows the income tax saving (difference between your marginal rate and the 15% contributions tax), the reduction in take-home, and whether you're within the concessional cap.

FREQUENTLY ASKED QUESTIONS

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Australia Super Calculator · FY 2025-26 · SGC 12% · ATO income tax rates · Concessional cap A$30,000 · Projections are illustrative only · For informational purposes — consult a licensed financial adviser for personal advice