Super from your employer

If you’re eligible for super guarantee (SG) contributions, your employer must pay the minimum SG contribution based on the current super guarantee rate, being 10,5% of your ordinary time earnings (up to the ‘maximum contribution base’ – rate current as of 1 July 2022) into your super account at least every three months.

SG payments are classified as employer contributions and count towards your concessional (before-tax) contributions cap.

Ordinary time earnings are generally what you earn for ordinary hours of work, including:

  • over-award payments
  • commissions
  • allowances
  • bonuses
  • paid leave.

If you’re a contractor, the minimum super amount should be calculated on the labour component of your contract, if it’s possible to separate it. Otherwise, it should be calculated on the total amount.

Calculator:

Estimate my super will help you calculate your SG entitlement.

Working overseas

If you take up an Australian employer’s offer to temporarily work overseas, your employer must continue to pay super contributions for you in Australia.

You or your employer won’t have to pay super (or a super equivalent) in the other country if both the following apply:

the country has a bilateral social security agreement with Australia

your employer obtains a certificate of coverage from ATO.

Opt-out of receiving super guarantee

If you have two or more employers and expect your employers’ super contributions will exceed your concessional contributions cap for a financial year, you can apply to opt-out of receiving SG from some of your employers.

Talk to your employer about the effect an exemption certificate may have on your pay or other entitlements before you apply. Note also that your employer can disregard an exemption certificate and continue paying SG.

When all feels overcomplicated, you can always hire a specialist. Our team of financial advisers and accountants will be happy to sort everything out for you. Contact us today.

Information source www.ato.gov.au

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© Lost Super Finder 2023

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Factual Information Only Disclaimer

This website contains factual information only and does not consider your personal circumstances, needs, objectives or financial situation. This factual information is not intended to imply any recommendation or opinion about a financial product. This information does not constitute financial advice or taxation advice, and the general nature of the content might not be applicable to you or your situation. Before acting on any information, you should seek professional advice and verify our interpretation/s before relying on the content or calculators within this website, while also considering its appropriateness in relation to your personal situation.

Notice

ASIC is simplifying the superannuation and retirement planner calculators while undertaking a scheduled review of assumptions.

As of 17 April 2020, these calculators will use a single set of assumptions.

The default assumptions in this calculator are based on Treasury’s long-term retirement income models. For more information on Treasury’s long-term retirement income modelling assumptions see the 2019 Treasury Research Institute paper ‘Accumulation of superannuation across a lifetime’.

Assumptions

The calculator works for accumulation funds only. It will not work for defined benefit funds.

We assume your account balance will receive all income and outgoings mid-year, apart from Government co-contributions which we assume are received at the end of the year.

Results are in today’s dollars

Results are shown in today’s dollars, which means they are adjusted for inflation.

Inflation assumptions

We make the following default assumptions on inflation (which you can change under the ‘Advanced  – insurance and inflation’ section that appears below calculator results):

  • 2.5% each year due to the rising cost of living (CPI inflation)
  • A further 1.5% each year due to the cost of rising community living standards


Contributions

We assume that your employer contributes an amount equal to 10.5% of your ordinary time earnings (you can change this in ‘You and your super fund’).

In future years we assume that:

  • Your employer and voluntary contributions will increase with inflation
  • You will satisfy the Work test at older ages and so are able to contribute
  • From 1 July 2021, the SG rate used for the default employer contribution rate is 10%. The SG rate is assumed to increase by 0.5% per annum until the SG rate reaches and stays at 12% from 1 July 2025 onwards.


Investment return

We make the following default assumptions for investment return and earnings tax:

  • Investment return before investment fees and earnings tax of 7.5% each year
  • An effective tax rate on investment earnings of 7.0%.

Actual returns will vary significantly from year to year and could be negative in some years, particularly for investment mixes where more is invested in shares and property. This calculator does not allow for such variations. You can vary assumptions in ‘You and your super fund’ and ‘Compare alternative fund’.

There is a lot to consider when comparing investment options between funds. Risk and return objectives and asset allocation within investment options may differ between funds and should be taken into account when comparing funds.

Further information

  • Super contributions must remain in super until you have met a condition of release. Weigh up the benefits of extra super against your other priorities, for example paying off your credit cards.
  • You will need to refer to your latest super account statement.

Disclaimers

  • This is a model, not a prediction.
  • The results from this calculator are based on the limited information that you have provided and assumptions made about the future. The amounts projected are estimates only provided by this model and are not guaranteed.
  • This calculator cannot predict your final superannuation benefit with certainty because this will depend on your personal circumstances including unexpected events in your life and external factors such as investment earnings, tax and inflation. This calculator assumes that you can make steady, predictable contributions and that all assumptions including these external factors will operate at set, steady rates for as long as you remain in the fund, even if events turn out differently from what’s assumed. These assumptions are essential so the calculator can show the effect of things you may be able to control, such as choosing a low-fee fund.
  • You should consider updating the projections provided by this model regularly as your circumstances may have changed. You can also change and update some of the assumptions to reflect your personal circumstances.
  • Do not rely solely on this calculator to make decisions about your retirement, there may be other factors to take into account. Consider your own investment objectives, financial situation and needs. You may wish to get advice from one of our licensed financial advisers.

How do I find my TFN?​

If you do not know your tax file number you can locate it via your income tax assessment, employee payment summaries, MyGov online account or you can call the ATO directly on 13 28 61 and request it over the phone.

Why we require your Tax File Number (TFN)?

Lost Super Finder will use the ATO portal to track down your Lost and Missing super accounts. Without a valid TFN being supplied, we are unable to complete the superannuation search for you.