What is super?

How it works

1. Money from a number of possible sources, such as Super Guarantee from your employer, is paid into your super account. Most money that goes into your super account is called a contribution.

Who can add money to your super?

You	You can add more money to your super account from either your pre-tax or post-tax dollars (provided you meet eligibility criteria), You can also rollover or transfer money in other funds*.
Your employer	If you’re employed your employer generally has to pay 9% of your salary into a super fund. This is called the Superannuation Guarantee.
Your spouse	Your spouse can make contributions to your super fund (if you are under age 70).
The Government	If you’re eligible, the Government has a co-contribution scheme where they will add to your super after you have made after-tax personal contributions to your super within certain limits.

* Rollovers or transfers may add to your super account but are not called contributions because these funds are already within the super environment.

2. Your super savings can be invested in assets such as shares, cash, listed property and fixed interest products such as government bonds. How your super is invested is up to you, the choices offered by your super fund and your risk profile.

3. Superannuation is taxed at concessional rates which are generally much lower that your marginal tax rate.  Your super contributions are generally taxed at a maximum of 15% if they are made by your employer (includes salary sacrifice) or if you claim a tax deduction for them.  Earnings on your superannuation investment are taxed at a maximum of 15%. 

4. Superannuation is designed so that you can save for your retirement but generally does not allow you to dip into your savings until you retire upon reaching your preservation age. Find out how you can access your super savings here.