Updated
Superannuation is a funded system with three tax points, and knowing all three is what makes a comparison possible. Employer contributions and salary-sacrificed amounts are taxed at a concessional rate when they enter the fund, within an annual cap above which the excess is taxed at your marginal rate. The fund's earnings are taxed at a concessional rate while accumulating and are untaxed once the account moves to the retirement phase. Withdrawals after age sixty from a taxed fund are generally tax free. This simulator projects the balance from contributions, salary growth and an assumed return, and shows what the fund's fees take from it. It does not model the transfer balance cap, contribution caps carried forward, or the insurance premiums deducted inside many funds, all of which are individual.
Simulator Private Pension Australia
Project your Australian private retirement savings: voluntary Superannuation (salary sacrifice + after-tax contributions) and SMSF. Compare risk profiles and strategies.
Your situation & savings
Summary
In your pocket at retirement
$965,850
net after tax (0% after age 60)
Possible monthly income
$3,864
per month as annuity
You save
$1,200
per month (Super + SMSF)
In practice: By saving $1,200/mo for 33 years, you will accumulate a capital of $965,850. After tax, you keep $965,850 net. Your investments earned you $425,650 more than your contributions.
Thanks to salary sacrifice and super tax advantages, you save approximately $1,530/yr in taxes. As an annuity, that amounts to $3,864/mo for life, in addition to your Age Pension and Super Guarantee.
Total capital
$965,850
Voluntary Super + SMSF
Monthly annuity
$3,864
If converted to lifetime annuity
Tax advantages
$50,490
Salary sacrifice + super tax breaks
Net after tax
$965,850
Available net capital (0% after 60)
Voluntary Superannuation
Final capital
$724,878
Total contributions
$302,100
Interest earned
$422,778
Tax savings
$38,610
Exit taxation
-$0
Net after tax
$724,878
SMSF (Self-Managed Super Fund)
Final capital
$240,972
Total contributions
$208,400
Interest earned
$32,572
Tax savings
$11,880
Exit taxation
-$0
Net after tax
$240,972
Capital growth
- Voluntary Super
- SMSF
- Total
Cumulative annuity vs Remaining capital
- Cumulative annuity
- Remaining capital
Frequently Asked Questions
What is the concessional contribution cap for 2026?
Should I salary sacrifice into super?
What is the difference between an industry fund and SMSF?
How is super taxed when I withdraw in retirement?
How much super should I have at my age?
Simulateurs associés
Understanding Australian private pension
Voluntary contributions to Superannuation
Beyond the mandatory Super Guarantee (12%), you can make voluntary contributions to boost your retirement. There are two types of contributions.
- Concessional (pre-tax): Salary sacrifice + deductible contributions. Taxed at 15% within super (instead of your marginal rate). Cap: $30,000/yr (includes employer SG).
- Non-concessional (after-tax): Contributions from your net income. No additional tax within super. Cap: $120,000/yr (or $360,000 over 3 years via the bring-forward rule).
- Government co-contribution: If you earn less than $58,445/yr and make non-concessional contributions, the government adds up to $500/yr (50 cents per dollar).
- Carry-forward: Since 2019, you can carry forward unused concessional cap from the past 5 years (if super balance < $500,000).
SMSF (Self-Managed Super Fund)
An SMSF (Self-Managed Super Fund) is a superannuation fund that you manage yourself. It offers full control over investments but comes with significant regulatory responsibilities.
- Full control: Free investment choice (shares, property, crypto, art, etc.). You are the trustee of the fund.
- Number of members: 1 to 6 members maximum (increased from 4 to 6 since 2021).
- Administrative costs: Accounting, mandatory annual audit, insurance. Approximately $3,000 to $6,000/yr minimum.
- Recommended balance: The ATO recommends a minimum balance of $200,000 to $500,000 so that economies of scale justify the costs.
- Legal obligations: Documented investment strategy, annual audit, ATO reporting, sole purpose test.
- LRBA: Ability to borrow to purchase property via a Limited Recourse Borrowing Arrangement.
Concessional vs Non-concessional contributions
| Criteria | Concessional | Non-concessional |
|---|---|---|
| Source | Pre-tax (salary sacrifice, SG) | After-tax (net income) |
| Tax within super | 15% (contributions tax) | 0% |
| Annual cap | $30,000 | $120,000 |
| Excess | Taxed at marginal rate | 47% + withdrawal or counted as concessional |
| Carry-forward | Yes (5 yrs, if super < $500,000) | Yes (3 yrs bring-forward) |
| Ideal for | High earners, tax reduction | High net worth, wealth transfer |
Optimal strategy: First maximise your concessional contributions (salary sacrifice) to benefit from the difference between your marginal rate and the 15% super tax. Then top up with non-concessional if your savings capacity allows it.
Super taxation: 15% in, 0% out after age 60
The favourable tax treatment is the main appeal of the Australian superannuation system:
On entry
15%
Tax on concessional contributions. 0% on non-concessional.
During (earnings)
15%
Tax on income and capital gains within the fund. 10% on long-term capital gains.
On exit (after 60)
0%
Completely tax-free. Lump sum or pension stream.
Division 293 tax:
If your income + concessional contributions exceed $250,000/yr, an additional 15% tax applies on concessional contributions (total 30% instead of 15%). This mainly affects high-income earners.
Salary Sacrifice strategies
Salary sacrifice involves redirecting part of your gross salary directly into your super, before income tax.
Tax advantage
Instead of being taxed at your marginal rate (up to 47%), the amount is taxed at only 15% within super.
Impact on SG
Salary sacrifice should not reduce your OTE (ordinary time earnings) for the employer SG calculation.
Cap
Salary sacrifice + employer SG must stay under the concessional cap of $30,000/yr.
Arrangement
Requires a written agreement with your employer. Must be set up before the salary is earned.
Practical example:
Gross salary $100,000/yr, marginal rate 34.5% (+ 2% Medicare levy): Without sacrifice: $500/mo net = $500/mo in your pocket With sacrifice of $500/mo into super: only $75/mo tax (15%) instead of ~$183/mo. Saving of ~$108/mo i.e. ~$1,296/yr.
Optimisation tips
- Maximise the concessional cap: If your budget allows, use salary sacrifice to reach the $30,000/yr cap. The tax saving is immediate.
- Carry-forward: Check your unused caps from the past 5 years on MyGov. If your super balance is below $500,000, you can catch up.
- Spouse contribution splitting: Transfer up to 85% of your concessional contributions to your spouse's super to balance accounts and optimise the asset test.
- SMSF: minimum balance: Only set up an SMSF if your super balance exceeds $200,000 to $500,000. Below that, administrative fees erode your returns.
- Insurance within super: Check your death, TPD and income protection cover. Premiums are paid from super (pre-tax) but reduce your balance.
- Transition to Retirement (TTR): From preservation age (60), you can access your super while continuing to work, with a combined salary sacrifice strategy to optimise taxation.
- Consolidate your accounts: If you have multiple super accounts, consolidate them to avoid multiple fees and diluted returns. Use MyGov to find lost accounts.