What is superannuation?

Definition of superannuation
Superannuation is a compulsory scheme where a person has money paid by their employer to a super fund so they are financially supported when they retire from the workforce.

Superannuation, also known as ‘super’, is a way of saving money while you are working, so that you will have money when you retire.

While you are working, your employer puts away a percentage of your salary each pay, to make sure you have money to live on in the future.

How superannuation works

If you are age 18 and over (or under 18 and working more than 30 hours per week) your employer is required by law to pay 11.5% of your ordinary time earnings (OTE) into your super fund – this is called a Superannuation Guarantee (SG) contribution. The SG rate is scheduled to increase to 12% on 1 July 2025.

Some employers may also make extra contributions to your super so check with your payroll office to see if this applies to you.

Once your super fund receives your SG contribution, they look after your money for you until you are ready to retire. You can also add extra money to your super on top of what your employer pays – and potentially pay less tax as well – so you'll have even more money in your super account when you retire.

What happens to your money

Over the course of your life, your super fund will help you to grow your super balance by investing the money that you or your employer puts into your super account.

You can let your super fund decide how your money is invested, or make your own investment choice. More about the basics of investing in super.

It's important to remember that while money goes into your super and can grow over time with investment returns, your balance is also affected by fees, insurance costs (if you have insurance), and taxes. That's why it's important to choose a super fund with low fees and understand what insurance your super fund offers.

When you can access your superannuation

As super is there for you to spend once you stop working, there are rules around when you can access it. Generally:

If you're age 65 or over, you can access your super, even if you're still working¹
If you're age 60 to 64, you can access your super as long as you're retired.

There are also some situations where you can apply to access your super early such as if you are a temporary resident who has left Australia.

How to choose a super fund

Most people can choose which superannuation fund they want their money paid into. If you don't tell your employer where to pay your super, they'll pay it into their default fund.

Choosing a super fund is an important decision. How your fund performs over the long term, fees, investment choice, and insurance options are just some of the things to consider when finding the best super fund in Australia.

What to do next

Check your super payments

If you don't know where your super is being paid, ask your employer. Your payslip should also show how much money is being put into your super fund each pay.

Employer contributions

Provide your tax file number (TFN)

Giving your super fund your tax file number (TFN) can help you avoid paying extra tax and may allow you to make other types of contributions. If you have a QSuper account, you can add your TFN to your account in Member Online.

Update my details

Keep your employer updated

If you change jobs, make sure you tell your new employer which super fund you’re with – or you could end up having multiple accounts and paying extra fees. You can keep your QSuper account when you change jobs.

Changing jobs

1. If you hold a Defined Benefit account, there are some important considerations before you access your super when you are still working.