Superannuation, or “Super,” is Australia’s mandatory retirement savings system. For anyone working in Australia — temporary visa holders, long-term residents, or citizens — understanding the Superannuation rate is key to knowing how much money you’re putting aside for the future and how it affects your take-home pay.
This guide explains the current Superannuation rate, how it is calculated, and what it means for employees and employers in 2026.
1. What Is the Superannuation Rate?
The Superannuation rate refers to the percentage of your ordinary earnings that your employer must contribute to your Superannuation fund. This is known as the Super Guarantee (SG).
For 2026, the Superannuation Guarantee rate is 11% of your ordinary time earnings.
Key Points:
● Applies to almost all employees over 18 who earn more than AUD 450 per month.
● Paid by the employer — it is not deducted from your salary.
● Contributions are deposited into your chosen Super fund, where they grow until retirement.
2. How Is the Superannuation Rate Applied?
The 11% SG is calculated based on ordinary time earnings, which generally includes:
● Base salary or wages
● Commissions
● Bonuses related to ordinary hours worked
● Shift loadings and allowances
Exclusions:
● Overtime (usually excluded)
● Reimbursements or expense allowances
Example Calculation
If your monthly salary is AUD 5,000:
Super Contribution = 5,000 × 11% = AUD 550
This AUD 550 is paid by your employer into your Super fund each month.
3. Upcoming Increases in the Superannuation Rate
The Australian government has legislated gradual increases to the SG rate:
Year
Super Rate
2026
11%
2027
12%
2028
12.5%
2029
13%
The target is 13% by 2029, giving Australians a stronger retirement savings foundation.
4. Impact on Employees
✔ Take-home pay
Because the SG is paid by the employer on top of your salary, your net salary does not decrease.
✔ Retirement savings growth
Even a small increase in the SG rate can significantly grow your Super over decades thanks to compounding.
✔ Tax advantages
Super contributions are taxed at a concessional rate of 15% (not your usual income tax), providing tax efficiency for your retirement savings.
5. Special Considerations for Expats and Temporary Workers
If you are a temporary visa holder or US citizen working in Australia:
● You are entitled to employer Super contributions, even if you plan to leave the country.
● When leaving Australia permanently, you may be able to claim your Super back through a Departing Australia Superannuation Payment (DASP), though tax applies.
● Some visa holders, such as Working Holiday Makers, may have different Super rates or tax rates applied.
6. Why Knowing the Superannuation Rate Matters
Understanding the SG rate helps you:
● Budget your finances effectively
● Forecast retirement savings growth
● Ensure your employer is complying with their legal obligations
● Plan whether voluntary contributions are needed to supplement your Super
7. Tips to Maximize Your Super Contributions
- Check your pay slips to confirm your employer contributes 11% of your ordinary earnings.
- Choose a fund wisely — fees and investment performance can affect long-term growth.
- Consider voluntary contributions if you want a bigger retirement nest egg.
- Track Super for multiple employers — consolidate if needed to avoid extra fees.
- Plan for leaving Australia — understand DASP and tax implications if you’re an expat.
FAQs About the Superannuation Rate
Q1: Does the Super rate change every year?
A: It increases gradually; for example, it is 11% in 2026 and will reach 13% by 2029.
Q2: Does the Superannuation rate apply to part-time employees?
A: Yes, as long as they earn over AUD 450 per month.
Q3: Can I negotiate my Super rate with my employer?
A: The SG rate is the legal minimum. Some employers may offer salary sacrifice arrangements for higher contributions.
Q4: Are temporary visa workers entitled to Super?
A: Yes, almost all eligible visa holders receive employer Super contributions.
Conclusion
The Superannuation rate is a vital part of Australia’s retirement system. For 2026, employers must contribute 11% of your ordinary earnings to your Super fund, with gradual increases planned through 2029. Understanding this rate, how it’s calculated, and its impact on your finances ensures you make the most of your retirement savings while working in Australia.
Next Steps
Check your payslips today to ensure your Super is being calculated correctly. If you’re an expat, consider planning for how your Super will grow during your stay and what happens when you leave Australia.
If you want a comprehensive guide and more details about Super, download the US–Australia Country Guide from Expat US Tax. Many US expats have found it extremely helpful.
