Australian Government employees have access to distinct superannuation schemes — some of which are among the most generous retirement arrangements in Australia. Understanding which scheme you are in, and how it works, is essential for retirement planning.
The Three Commonwealth Civilian Super Schemes
1. CSS — Commonwealth Superannuation Scheme
Status: Closed to new members since 1 July 1990
Type: Defined benefit
Who is in it: Commonwealth employees who joined government service before 1 July 1990 and have maintained continuous government employment
How it works:
- Members contribute 5% of salary
- Employer contributes an indexed defined benefit based on salary and service
- Benefits calculated using a complex formula: Average salary × benefit multiple × years of service
- Can be taken as a pension or lump sum
- Pension is indexed to movements in Average Weekly Ordinary Time Earnings (AWOTE) or CPI, whichever is greater
CSS pensions are among the most generous in the Australian super system — a legacy of older public service arrangements.
Tax: CSS includes an untaxed element — the employer-funded component has not been taxed in the fund, so withdrawals are taxed at a higher rate than normal super.
2. PSS — Public Sector Superannuation Scheme
Status: Closed to new members since 1 July 2005
Type: Defined benefit (hybrid)
Who is in it: Commonwealth employees who joined between 1 July 1990 and 30 June 2005
How it works:
- Member contributions: 0–10% of salary (member chooses)
- Employer “productivity” contributions: 3%
- Defined benefit component calculated using: Final average salary × years of membership × accrual percentage
- The accrual rate depends on service type and member contribution rate
Tax: Like CSS, PSS has an untaxed element — important for withdrawal tax planning.
3. PSSap — Public Sector Superannuation Accumulation Plan
Status: Open — current scheme for new APS employees from 1 July 2005
Type: Accumulation
Employer contribution rate: 15.4% of salary (above standard 11.5% SG)
See PSSap Review for full details.
The Untaxed Element and Retirement Tax
For CSS and PSS members, the defined benefit component contains an untaxed element. This means:
- Under 60: Taxed at marginal rate (minus 15% offset) on the untaxed component — not tax-free
- 60 and over: Taxed at 15% (not 0%) on the untaxed component
This is significantly different from normal super and requires retirement income planning with a specialist adviser.
State Government Super Schemes
Many Australian states also have their own public sector super schemes:
- GESB (WA) — see GESB Review
- State Super NSW (SSF, SASS, SANCS — various NSW schemes)
- Emergency Services Super (Victoria)
- QSuper / Sunsuper → Australian Retirement Trust (Queensland)
Each state scheme has its own rules, benefit structures, and tax treatment.
For advice on CSS, PSS, or PSSap, speak with a licensed financial adviser with public sector super experience. Find an adviser via MoneySmart. For more: PSSap Review, Defined Benefit Funds, Super Tax Components.