HOW SUPERANNUATION WORKS
Superannuation is your money for retirement, and understanding it puts you in control. Join us as we navigate the world of Australian super.
TOPICS & RESOURCES
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SUPERANNUATION
The Australian superannuation system is a way for people to save for their retirement through long-term investments that grow over time. It begins for most people when they start working and receive super contributions from their employer as a percentage of their pay. Your super can become a substantial nest egg to support you when you retire.
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EMPLOYER CONTRIBUTIONS
In most cases, your employer must pay at least 11.5% of your ordinary time earnings into your super account, known as the super guarantee (SG).
Super from your employer: Find out how much super your employer must contribute to your super fund (known as super guarantee).
Am I entitled to super? Use this tool to check if you are entitled to super guarantee contributions from your employer.
Estimate my super: This tool helps you estimate how much super guarantee your employer should have paid for you.
Unpaid super from your employer: What you can do if you think your employer hasn't paid your full super entitlements.
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TAX & SUPER
Tax plays a role in how your superannuation grows and how much you can access in retirement. Refer below for the tax rules that affect your super contributions, investment earnings, and eventual withdrawals.
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DEATH BENEFITS & BENEFICIARIES
Who gets your super if something happens to you? Learn about nominating beneficiaries, understanding the different types of nominations, and making sure your superannuation is distributed according to your wishes.
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ACCESSING SUPER
Find out when and how you can access your superannuation savings. Generally, you can access your super once you reach a certain age and retire, but there are also limited circumstances where you might be able to access it earlier.
Withdrawing and using your Super
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EARLY ACCESS TO SUPER
There are very limited circumstances where you may be able to access your superannuation before retirement.
Access on compassionate grounds
Access due to a terminal medical condition
Access due to severe financial hardship
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TEMPORARY RESIDENTS & SUPER
If you’re a temporary resident of Australia, your employer may be required to pay into your superannuation fund.
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First Home Super Save Scheme
Discover how the First Home Super Saver Scheme can help you save for your first home faster. This scheme allows eligible individuals to make voluntary contributions into their super and withdraw them later, along with associated earnings, to help fund a first home deposit.
Salary Sacrificing Case Study
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Salary Sacrificing Case Study *
CASE STUDY PULLED FROM Super Contributions
Cara earns $90,000 before tax, excluding her employer's super contribution. If she decides to redirect $15,267 of her pay into salary sacrifice super contributions, she will save $2,977 in tax, with the extra money going into her super fund.
Assumptions: The figures used in this table are estimates only and are based on 2022—23 income tax rates. They include the low and middle income tax offset and a Medicare levy of 2%. Employer super contributions remain the same after salary sacrifice.
In this scenario, Cara's take home pay will drop by $10,000.
Cara will save $2,977 in tax on income and super, and have an extra $12,977 in her super.
| Cara's Income | Without Salary Sacrifice | With Salary Sacrifice |
|---|---|---|
| Gross Salary | $90,000 | 90,000 |
| Less salary sarcifice to super | $0 | $15,267 |
| Less tax and medical levy | $20,017 | $14,750 |
| Take home (net) pay | $69,983 | $59,983 |
| Cara's Super | ||
| Employer super contribution | $9,450 | $9,450 |
| Plus salary sacrifice | $0 | $15,267 |
| Less contributions tax | - $1,418 | - $3,708 |
| Net super contribution | $8,033 | $21,010 |