In simple terms, superannuation is just a tax-effective way to save for retirement. Here's where you'll find everything you need to know about how it works.

What is superannuation?

Superannuation is a long-term investment designed to provide you with money for retirement. The main advantage of super is, generally speaking, the earnings on money invested in superannuation are taxed at a lower rate than earnings on money invested outside super.

What is the superannuation guarantee (SG)?

Your super starts to build up from the time you start work, because that’s typically when your employer starts to make compulsory contributions known as the superannuation guarantee (SG) in to your superannuation fund on your behalf.

What is the minimum superannuation guarantee employers must pay?

The current minimum compulsory contribution, known as the superannuation guarantee or SG, is 9.5% of your salary. The SG will increase over the next few years to be 12% by 2025/26.

How do you withdraw your super?

Your super is to be used to provide money for your retirement so, any money you put into super must stay there until you reach your preservation age. Your preservation age depends on your date of birth.

When you retire, you can withdraw your super (after taxes and other charges) as a lump sum, as an income stream or a combination of both.

How can you grow your super?

There are several things you can do right now to grow your super, such as making voluntary personal superannuation contributions, consolidating your super into one fund and choosing your superannuation investment option.