How Superannuation Grows Over Time
Your superannuation balance at retirement depends on four main factors: your starting balance, ongoing contributions (employer SG + any salary sacrifice), investment returns, and fees. Compound growth means even small changes made early have a massive impact decades later.
Super Guarantee Rate
The super guarantee rate for 2026–27 is 12% of your ordinary time earnings. Your employer must contribute this amount into your super fund on top of your salary. This rate reached its long-planned 12% target from 1 July 2025.
Contributions Tax
Concessional contributions (employer SG and salary sacrifice) are taxed at 15% inside super, rather than your marginal tax rate. This is what makes salary sacrifice into super so tax-effective for most workers. The concessional contributions cap is $32,500 per year for 2026–27. If your total super balance was under $500,000 on 30 June of the previous year, you can also carry forward unused cap from the past 5 years — up to $142,500 on top of this year’s cap.
About This Calculator
This calculator projects your super balance at retirement using constant assumptions for salary growth, investment returns, and fees. Results are shown in today's dollars by default, deflated at 3.7% a year, which is ASIC's default wage-inflation assumption for the accumulation phase under Regulatory Guide 276 and ASIC Instrument 2022/603; you can change the rate or switch to future dollars. Real returns will vary year to year. It models Division 293 tax and concessional-cap carry-forward, but not government co-contributions, the transfer balance cap, insurance premiums deducted inside super, or the retirement (drawdown) phase; each of those can change the outcome materially, so treat the result as a starting point rather than a plan.
Why the default assumptions are reasonable
Every default can be changed. The 7% return is net of investment fees and earnings tax and before the administration fee, which is entered separately; it sits within the range of ten-year returns APRA publishes for large MySuper balanced and growth options and below the growth-option average, so it does not flatter the projection. The 0.3% administration fee, plus an optional fixed dollar fee, is a mid-range figure for percentage-based administration fees at large APRA-regulated funds; some funds charge more, some charge a fixed dollar amount instead, and insurance premiums are not modelled, so enter your own fund's fees for a closer result. Salary growth of 3% a year is below the 3.7% long-run wage growth Treasury assumes, which is conservative. The 12% super guarantee, the $32,500 concessional cap, its $2,500 indexation steps and the 15% contributions tax are legislated figures, verified against the ATO for FY 2026–27. Retirement at 67 is ASIC's default and the Age Pension age. The 3.7% deflator is ASIC's prescribed wage-inflation assumption for the accumulation phase.
This calculator is not intended to be relied on for making a decision about a financial product. Consider obtaining advice from an Australian financial services licensee before making any financial decisions. For personalised super advice, consult a licensed financial adviser or visit the ATO.