Superannuation (or ‘super’) is money set aside while you’re working to support your financial needs in retirement. Your super is invested in a range of assets to help grow your balance so you can have the best possible retirement outcome.
How superannuation works
- If you're eligible1, when you start working your employer needs to contribute a minimum of 12% of your pre-tax income to your super account. This is known as the Superannuation Guarantee.
- You can add more money to your super by choosing the option that works best for you like before or after-tax contributions2.
- When you join AustralianSuper, you’ll automatically be invested in the Balanced option, unless you choose another investment option.
- Most members receive basic insurance cover with their super account. This cover provides a basic level of protection if you die or become ill or injured. Eligible members receive age-based Death, Total & Permanent Disablement (TPD) and Income Protection cover3.
- As you get closer to retirement, you can transition from your super account into a Choice Income account to receive a regular income in retirement.
What is super or superannuation?
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Show transcript
Superannu... What? You've heard the term, you've seen it on your payslips, but what does superannuation actually mean?
Super, or superannuation, is money set aside while you're working that you can access later on when you retire so you can enjoy life when you stop working.
So how does it work?
When you have a job, your employer pays your salary and puts some of that money 12% or more into a super account where it is invested for you until you retire.
These investments are managed by expert teams who invest your super in a range of assets and stocks to deliver the best possible long-term returns.
You can choose which super funds you want your money going into. This choice could make a big difference to how much super you end up with, so it's important to compare super funds.
When comparing funds, you should consider each super fund's long-term investment performance and fees to ensure it can deliver the most for your future.
It's also a good idea to consider having one super account so you're not paying multiple fees. You can consolidate your super if you have multiple accounts and remember to take it with you when you change jobs.
Most funds provide insurance cover along with your super account. This will offer a basic level of protection in the event of injury, illness, or death. It can also help protect you and your loved ones financially.
The idea of retirement might seem a long way off, but there are a few things you can do now to ensure your future is taken care of.
One, make sure your super fund has your Tax File Number, or TFN, so you don't pay more tax than you need to.
Two, tell your employer which fund you want your super paid to.
Three, keep your details up to date so your super fund can come contact you with important information about your account.
Being in control of your super is super important. That's why AustralianSuper offers access to expert advice, education, and resources when and where you need it, online, face-to-face, or over the phone.
Find out more about how super works with AustralianSuper.
Visit australiansuper.com.
Super on Paid Parental Leave
Under the new Superannuation on Parental Leave Pay legislation, eligible parents with babies born or adopted on or after July 1, 2025 will receive a superannuation contribution to your nominated super fund. This contribution will be based on the Superannuation Guarantee, which is 12% of your Parental Leave Pay.The Australian Taxation Office (ATO) will make lump sum payments, including interest, to your superannuation fund starting in July 2026. These payments will occur after the end of each financial year in which the Parental Leave Pay was received.
Parents will continue to apply for Parental Leave Pay through Services Australia, who will assess eligibility for both the payment and the superannuation contribution. Learn more.
- To be eligible for super, you must be 18 years or older. If you're a private or domestic worker or are under the age of 18 you must work more than 30 hours per week.
- Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.
- The cover provided automatically is based on your division, age, account balance and if you are receiving employer contributions. You can apply to increase, decrease, or cancel your cover anytime. Age limits and other conditions apply. Read the Insurance in your super guide for more information. AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.