How does superannuation work?
Your super is designed to provide you with an income in retirement. Thinking about it now means you’ll be ready for a better financial future.
Superannuation is an effective way to save for retirement throughout your working life as contributions into super are usually taxed at a lower rate than your salary.
How super works
In addition to your wages, your employer is generally required to pay an extra 10% of your salary into super. It’s called the ‘Superannuation Guarantee’ (SG).
Your employer pays super directly to a super fund like us. We then invest that money into different investment options with the goal of helping it grow to provide you income in retirement.
You may also be eligible for default insurance cover (automatic or elected) if your employer makes contributions to your account. The cost of this cover is deducted from your super and can provide peace of mind for you and your family.
In most cases, you can't access your super until you’re at or nearing retirement age (known as your preservation age) and meet a condition of release (such as retiring). When you retire, you may be able to access both your super and the Government's Age Pension provided by Centrelink to contribute to your retirement income.
While your employer must contribute to your super you can also choose to top it up through additional contributions.
Will your employer pay super?
Your employer must generally pay you super if:
- you're 18 years or older and earn more than $450 (before tax) in a calendar month
- you're under 18 and earn more than $450 (before tax) in a calendar month but also work more than 30 hours per week.
You may also be entitled to superannuation if you're a contractor, even if you have an Australian business number (ABN), particularly where you’re being paid for your labour or skills.
It doesn't matter if you work casually, part-time or full-time. If you meet the criteria above, your employer is generally required to pay you super.
From 1 July 2022 it’s proposed that the $450 monthly income threshold will be removed. This will allow more working Australians to be paid super, no matter their income or hours.
What if you're self-employed?
When you’re self-employed you have the option to make super contributions for yourself. You can join us as a personal plan member and enjoy our great member benefits including choice of investment options and access to our experienced advisers at no extra cost. Eligible members can also apply for insurance cover.
Choosing a super fund
Here’s where you can take control of your super. Most employers allow you to choose your own super fund!
Only a small number of industries or occupations have rules that restrict where your super can be paid to. Ask your employer if you’re not sure. Employers will also have a default super fund they’ll pay your super into if you don’t choose your own.
Complete this quick online form if you want to tell your employer you choose us.
A good super fund:
- has low administration fees
- delivers solid long-term investment returns
- gives profits back to members, not shareholders.
How super is invested
We use specialised investment managers who invest your super across a range of different assets such as property, infrastructure and shares. Like SG contributions, the tax rate on investment returns in super is 15%, which can be less than investments held outside of super. This means you can keep more of the profits
Ready to become a member?Join now
Our key fees and charges
We're committed to keeping fees as low as possible so our members can get the most out of their super.
You pay $1.50 per week, plus 0.18% per year of your account balance. We cap the variable administration fee at $495 per year (applies if you maintain a balance over $275,000). These fees cover administration costs involved in the daily maintenance of members’ accounts.
Investment fees cover the fees and costs related to creating investment returns. They’re not deducted from your account balance but rather from the gross investment earnings of the fund before they’re applied to your account.
There are also indirect costs related to managing your investments, such as investment brokerage, which aren't deducted from your account but before investment earnings are received. Investment fees and indirect costs vary depending on your chosen investment options. See our PDS and Fees and Costs guide for further information.
Other potential fees
Other fees may apply for certain things like splitting your account with your spouse due to a relationship breakdown.
Insurance premiums vary depending on the types of cover you have, the amount you’re covered for, and other factors including your age, occupation and health.
Download our Insurance Guide to learn more or to calculate your premium.
Super around the world
State Pension, Central Provident Fund, Employees Provident Fund, 401k or just the Pension if you were born overseas it’s likely that you knew superannuation under a different name! Regardless of what it's called, super serves the same purpose around the world: to help people retire in financial dignity. The good news is that if you’re in Australia as a temporary resident and planning to move overseas permanently you should be able to take your super with you, subject to paying tax. Learn more.