Australia’s superannuation system is complex — and most Australians have questions. Here are plain-English answers to the most common super questions.
Contributions
How much super does my employer have to pay?
In FY2024–25, your employer must contribute 11.5% of your ordinary time earnings (OTE) to super — this is the Superannuation Guarantee (SG). The rate rises to 12% from 1 July 2025.
What is the contribution cap?
There are two caps:
- Concessional (pre-tax) contributions: $30,000 per year (FY2024–25) — includes employer SG and salary sacrifice
- Non-concessional (after-tax) contributions: $120,000 per year
Exceeding the cap results in additional tax. See Super Contribution Limits.
Can I make extra contributions to my super?
Yes — through salary sacrifice (pre-tax) or personal contributions (after-tax). You can also claim a tax deduction on personal contributions if eligible. See Salary Sacrifice Super.
What is salary sacrifice?
Salary sacrifice involves redirecting a portion of your pre-tax salary into super. The contribution is taxed at 15% in the fund (concessional tax rate) rather than your marginal income tax rate. At higher incomes, the tax saving is substantial.
Accessing Super
When can I access my superannuation?
Generally, you can access super when you:
- Reach your preservation age (60 for most people born after 30 June 1964) AND retire
- Reach age 65 (regardless of retirement status)
Preservation ages for people born before 1 July 1960 are lower. See Super Preservation Age.
Can I access super early?
Only in limited circumstances:
- Terminal medical condition
- Permanent or temporary incapacity
- Genuine financial hardship (small amount, with conditions)
- Compassionate grounds (specific categories)
- First Home Super Saver Scheme (for first home deposit)
Illegal early access schemes exist — they are fraudulent and result in tax penalties plus the loss of the amount accessed.
How much tax do I pay when I withdraw super?
- Age 60+: Generally tax-free (for taxed super funds — which is most)
- Age preservation age to 59: Low-rate cap applies ($235,000 lifetime, FY2024–25) — excess taxed at 17%; below cap taxed at 0%
- Under preservation age: 20% (plus Medicare levy)
Different tax rates apply for untaxed super (e.g., some public sector funds).
Choosing a Fund
How do I choose a super fund?
Key factors to compare:
- Fees — compare using the ATO YourSuper tool
- Investment performance — look at 5-year and 10-year returns
- Investment options — do they offer your preferred option (e.g., index, high growth)?
- Insurance — death, TPD, income protection
- APRA Performance Test result — avoid “failed” funds
See Super Fund Comparison Table.
Can I choose my own super fund?
Yes. Most Australian employees have the right to choose their super fund (“super choice”). You complete a standard choice form from the ATO and provide it to your employer. Exceptions apply for some awards and enterprise agreements.
Does it matter which investment option I’m in?
Yes, significantly. Investment option choice affects long-term returns. Most members are in a “balanced” default option. If you’re younger (under 50), a higher-growth option may be more appropriate. Always check the default investment option your fund has placed you in.
Finding and Consolidating Super
How do I find lost super?
Use the ATO’s myGov portal — select “Manage my super” to see all super accounts linked to your Tax File Number (TFN). The ATO also proactively consolidates small and inactive accounts.
Should I consolidate multiple super accounts?
Generally yes — multiple accounts mean multiple sets of fees eroding your balance. However, check insurance before consolidating — you may lose existing cover. See Consolidating Super Accounts.
Tax
Is super taxed?
Yes — at three points:
- Contributions: Concessional contributions taxed at 15% in the fund (or 30% for high earners via Division 293)
- Fund earnings: 15% in accumulation; 0% in pension phase
- Withdrawals: Tax-free after 60 for most members; taxed under 60
What is Division 293 tax?
High-income earners (income + concessional contributions > $250,000) pay an additional 15% tax on concessional contributions. This brings the effective contribution tax rate to 30%. See Division 293 Tax.
Insurance
Does my super fund provide insurance?
Most funds provide default death and TPD (total and permanent disability) cover. Many also offer income protection (salary continuance). Cover starts automatically for eligible members. See Insurance in Super.
Can I keep my super insurance if I switch funds?
Your existing cover ends when you leave. You need to apply for cover with the new fund — this may require underwriting (health questions), especially if you are older or have existing conditions.
Retirement
How much super do I need to retire?
ASFA (Association of Superannuation Funds of Australia) estimates you need approximately:
- $595,000 (couple) or $595,000 / 2 = $297,500 (single) for a “comfortable” retirement
- Around $70,806/year (couple) or $50,004/year (single) in FY2024–25
This assumes a 25+ year retirement and partial reliance on the Age Pension. See How Much Super Do I Need?.
What is an account-based pension?
After retirement, you can transfer your super into an account-based pension (ABP). Instead of accumulation, you draw down a regular income from your super balance. Earnings are taxed at 0% in pension phase (up to the Transfer Balance Cap of $1.9 million in FY2024–25).
For advice tailored to your situation, speak with a licensed financial adviser. Find one via the ASIC financial advisers register or MoneySmart. For more, visit the Superannuation home page.