How super works

Super is savings for your retirement and an important part of your financial plan for the future.

Who earns super?

Generally, you earn super if you’re:

• age 18 years or
• under age 18 years, and work more than 30 hours in a week.

How much super should I get?

Your employer needs to pay at least 11% of your before-tax earnings into a super fund on your behalf. This amount is on top of your earnings and adds to your overall salary. This rate will stay in place until 30 June 2024, then will gradually increase until it reaches 12% by 1 July 2025.

Some workplaces may have an agreement in place that provides super contribution rates above the 11% minimum.

How super savings work

While you’re working, your super balance will grow through:

• contributions from your employer
• extra amounts you (or your spouse) put into your account
• any government boosters you’re eligible for
• transfers from other super funds
• positive investment returns (money earned on the investments we make on your behalf).

Regular deductions and things that will reduce your super balance are:

• contributions tax that’s payable when money goes into your super account
• fees we charge for managing your account
• insurance fees (if you have cover with us)
• transfers to other super funds
• negative investment returns.

Boost your super

You can grow your super faster by paying extra into your super. This can be done directly through personal contributions or through your employer using salary sacrifice. Find out how. 

Access your super

Super is your savings for retirement, so there are rules about when you can access it. Generally, you can access your super when you stop working and meet a condition of release. You can then choose to have your super paid to you as a regular income or as a lump sum. Find out more.

How money paid into super is taxed

Before-tax contributions are generally subject to a tax rate of 15%. This is called 'contributions tax'.  Before-tax contributions include super paid by your employer, salary sacrifice amounts, and any personal contributions you claim as a tax deduction.

If you earn more than $250,000 in a financial year (including your before-tax super contributions), you may have to pay an extra 15% tax on some or all of your before-tax contributions, as advised by the ATO. 

Generally, you don't pay any tax on after-tax contributions (as you or your spouse already paid income tax on these amounts). After-tax contributions include personal contributions you haven't claimed a tax deduction for, and spouse contributions you've received.

How investment earnings in super are taxed

Your super is invested in one or a mix of investment options with the aim of growing your savings through investment returns.

Investment returns are taxed at up to 15%, depending on which option you're invested in. The actual rate of tax paid may be less due to the effect of various tax credits, deductions and offsets. The amount of tax payable is taken into account when calculating the unit price for each investment option and deducted before the earnings are reflected in your account balance.