Super
In short
Superannuation is money set aside for your retirement, mostly paid by your employer (12% of your wage in 2026-27). It is taxed lightly, so it is one of the most effective places to build long-term wealth. Two small habits - one fund, and the occasional extra contribution - make a large difference over decades.
How super works
While you work, your employer must pay super guarantee contributions into a super fund for you - 12% of your ordinary earnings in 2026-27, on top of your wage. The fund invests that money over your working life. You generally cannot access it until you reach your preservation age and retire (or turn 65).
It might feel abstract, but super is genuinely yours - just locked away for later. For most people it becomes one of their largest assets, often second only to a home. Small decisions now compound enormously by retirement.
Three high-value habits
Have just one fund
Multiple accounts mean multiple sets of fees and insurance premiums quietly eroding your balance. Consolidate through ATO online services in myGov (it also finds lost super). Check for insurance before closing an old fund.
Check your fund is decent
Compare your fund\u2019s long-term net returns and fees using the ATO\u2019s YourSuper comparison tool. A lower-fee, well-performing fund can add tens of thousands over a career.
Pick the right investment option
Younger members can usually afford a growth-oriented option (more shares) because they have decades to ride out ups and downs. Nearing retirement, many shift to more stable options. Your fund lets you choose.
Adding a little extra
You can contribute more than your employer does, within caps. For 2026-27:
| Type | Cap 2026-27 | What it is |
|---|---|---|
| Concessional (before-tax) | $32,500/yr | Employer SG, salary sacrifice, and personal contributions you claim as a deduction. Taxed 15% going in (30% for very high earners). |
| Non-concessional (after-tax) | $130,000/yr | Contributions from money you have already paid tax on. No further contributions tax. |
- Salary sacrifice: arrange with your employer to put part of your pre-tax pay into super. It is taxed at 15% instead of your marginal rate - often a saving if you earn above $45,000.
- Carry-forward: if your total super balance is under $500,000, you can use unused concessional cap from the previous five years to contribute extra in a single year.
- Government co-contribution: lower-income earners who add after-tax money may receive a government top-up.
- Spouse contributions: may earn a tax offset if your partner has low income.
Because super is invested for decades and taxed lightly, an extra $50 a fortnight in your twenties or thirties can grow into a very large sum by retirement. Model it in the super projection tool. But never contribute money you will need before retirement - it is locked away.
First home buyers - the First Home Super Saver
The First Home Super Saver (FHSS) scheme lets eligible first-home buyers make extra voluntary contributions to super and later withdraw them (plus deemed earnings) for a deposit. Because those contributions are taxed lightly, you can often save a deposit faster than in a normal account. There are limits and rules - see Buying a home and the ATO before relying on it.
Approaching retirement
As retirement nears, the questions change: is my balance on track, when can I access super, and will I get any Age Pension? The Age Pension (from Services Australia) is means-tested on income and assets and has an eligibility age of 67 for most people. Many retirees combine super and a part pension. This is an area where personalised advice pays off - some super funds offer low-cost advice to members, and Services Australia\u2019s Financial Information Service is free.
Common super mistakes
- Holding several forgotten accounts, each charging fees and insurance.
- Never checking the fund\u2019s returns or fees for years.
- Being in a too-conservative option for decades (missing growth), or a too-aggressive one right before retirement.
- Not nominating a beneficiary, so super may not go where you intend.
- Assuming your employer is paying it - always verify.
Sources for this page
Every figure below was checked against the official source shown. Verified 20 July 2026. Figures and rules change - always confirm before acting.
- Australian Taxation Office - Super guarantee percentage. ato.gov.au - 12% for 2026-27
- Australian Taxation Office - Concessional and non-concessional contribution caps. ato.gov.au - $32,500 / $130,000 for 2026-27
- ASIC - Moneysmart - Super and the super calculator. moneysmart.gov.au/how-super-works - independent
- Australian Taxation Office - First Home Super Saver Scheme. ato.gov.au - FHSS rules
Verified 20 July 2026