Know which contributions are taxed and capped together

Employer Super Guarantee and salary-sacrifice contributions are generally concessional contributions. This projection deducts 15% contributions tax from both before they enter the account. An after-tax contribution is added without that deduction. The distinction matters: entering every contribution in the same field can overstate or understate the amount invested, and it hides which annual cap may apply.

From 1 July 2026, MoneySmart’s published superannuation-calculator assumptions use a general concessional contributions cap of $32,500. The non-concessional cap is four times that amount, or $130,000. Individual eligibility can differ because carry-forward concessional amounts, bring-forward non-concessional rules, total super balance and other conditions affect what can be contributed without extra tax. This page flags the general concessional cap but does not block the projection.

Start with ordinary-time earnings, not the package headline

The 12% Super Guarantee normally applies to ordinary-time earnings, which may differ from total pay when overtime or particular allowances are involved. A package advertised as “including super” already contains the employer contribution; entering the full package as salary and then adding 12% would count part of the remuneration twice. Use the salary before super shown in the offer or payroll records, and compare the calculated first-year employer amount with the year-to-date amount on the fund statement.

Payday timing changes cash flow, not the annual rate

Super contributions are increasingly paid closer to payday, but the annual projection spreads them evenly across twelve months. Earlier receipt can produce slightly more investment time than a once-a-year model. Actual posting dates, payroll corrections and fund processing create small differences. Use the annual statement to reconcile contributions rather than expecting the projection to match a transaction ledger to the dollar.

Monthly compounding reveals the drag from account costs

The projection applies the entered investment return monthly, deducts a monthly share of the fixed administration fee and insurance premium, deducts the balance-based fee, and then adds that month’s net contributions. Salary, fixed costs and contributions rise once a year with the inflation assumption. The return input should already be after investment tax and investment fees, otherwise those costs could be counted again.

MoneySmart’s June 2026 assumptions list a 6.1% annual return for a balanced option, net of tax and investment fees, along with 2.5% cost-of-living inflation. Its default administration assumptions are $59 a year plus 0.11% of balance, and its average insurance premium assumption is $599. Those figures are useful defaults for demonstrating the model, not a claim that they match a particular product. Replace them with the product disclosure statement and the latest annual member statement.

Future dollars and today’s dollars answer different questions

The large main result is the dollar balance at the selected retirement age. It includes decades of price inflation, so it should not be compared directly with the cost of a home, car or lifestyle today. The today’s-dollar result divides the projection by accumulated inflation. That lower amount is the useful figure for comparing with a current retirement-spending target.

The composition bar separates the starting balance, net contributions and residual growth. Growth is calculated as the final balance minus the starting amount and net contributions. If fees and weak returns consume more than investment earnings, modelled growth can be zero or negative; the bar does not disguise that outcome. The monetary ledger remains the authoritative breakdown.

Example: a 35-year-old on $95,000

At 12%, first-year employer contributions are $11,400. Adding $5,000 salary sacrifice produces $16,400 of gross concessional contributions, below the $32,500 general cap. After 15% contributions tax, $13,940 enters the account from those sources, plus the $2,000 after-tax contribution. The result then depends on the existing $120,000 balance, 32 years of returns and the continuing costs entered above.

Compare changes that affect the whole accumulation period

The three scenario rows hold every input constant except one. A return one percentage point lower shows sensitivity to long-run investment performance. Extra salary sacrifice shows the balance effect before checking personal tax savings or contribution-cap eligibility. Lower insurance cost shows the value of retaining more money in the account, but it does not say that reducing cover is appropriate.

Higher return usually means higher risk

Cash, conservative, balanced and growth options hold different assets and can experience very different short-term losses. Choosing a higher return input because it improves the result is not a risk assessment. Read the fund’s investment objective, asset allocation, expected volatility and minimum suggested time frame. A member close to retirement may care more about a severe drawdown than a younger member with decades to recover.

Fees should be compared for the same services

A cheaper account is not automatically better if the insurance, advice, administration or investment option differs. Compare like with like. Separate fixed account fees, percentage administration fees, investment fees, transaction costs and insurance premiums. This page models only the three explicit cost inputs and assumes the investment return is already net of investment fees and earnings tax.

Consolidating multiple accounts may reduce duplicated fixed fees and insurance, but moving funds can cancel existing cover or affect eligibility for new insurance. Check beneficiaries, claims in progress, employer arrangements and any special features before rolling over. The correct result is not simply the highest projected number if it comes from deleting protection the household relies on.

Some super balances need a different model

This projection is for an accumulation account. Defined benefit funds calculate retirement benefits from scheme rules such as salary, service and membership category; an account-balance projection may be irrelevant. Self-employed people can set employer contributions to zero and enter their intended before-tax amount as salary sacrifice, but deductibility, notice requirements and personal caps still need separate checking.

The model does not include the government co-contribution, low income super tax offset, spouse contributions offset, downsizer contributions, contribution splitting, Division 293 tax, excess-contributions outcomes or the transfer balance cap. It also does not model a retirement pension after the selected age. These omissions are deliberate because each depends on facts that cannot be inferred from salary and balance alone.

Negative years are hidden by a smooth average

A constant 6.1% annual assumption produces the same monthly rate throughout the projection. Real investments can rise sharply, fall sharply and recover unevenly. The order of returns matters particularly near retirement, when contributions are small relative to the balance. Use the lower-return comparison, vary the retirement date and review the projection periodically rather than treating one smooth line as a forecast.

Finally, super remains preserved until a condition of release is met. The selected retirement age is a modelling end date, not confirmation that the balance can be withdrawn. Access commonly depends on preservation age, retirement status, turning 65 or another permitted condition. Confirm access and tax treatment with the fund before using the projected balance in a retirement cash-flow plan.