How super works

Superannuation, or “super”, is money saved for your retirement while you work. It’s invested for decades, so even small amounts can grow into a big sum by the time you stop working.

What super actually is

Think of super as a long-term savings account with special rules. Money goes in while you work. It gets invested in things like shares, property and bonds. Then, much later, you use it to live on.

The trade-off is simple. Super gets lower tax than most savings, but you generally can’t take it out until you retire. This “lock-up” is called preservation (keeping the money safe until later in life).

How much your employer pays in

If you’re an employee, your employer must pay a set percentage of your pay into your super fund. This is called the super guarantee (SG).

• The SG rate is 12% (2026–27) of your qualifying earnings.
• Qualifying earnings means your ordinary pay plus some other amounts, like commissions and any salary you sacrifice into super.
• Super is paid on top of your pay. It doesn’t come out of your wage.
• There’s a cap on how much pay your employer must pay super on. This is the maximum contribution base: $270,830 a year (2026–27).

Most employees are covered, including casuals and part-timers. Workers under 18 need to work more than 30 hours in a week to get SG for that week.

Payday Super: what changed on 1 July 2026

Until mid-2026, many employers paid super only once every three months. That made it hard to spot missing payments.

Under Payday Super, which started on 1 July 2026:

• Employers must pay your super at the same time as your wages.
• The money must reach your fund within 7 business days of payday (with a few exceptions, such as for new employees).
• Employers who pay late face a charge that is now worked out and issued by the ATO.

This means you can check your super account soon after each payday and see the money arrive.

Who looks after your money

Every super fund is run by a trustee. A trustee is a company or group of people legally responsible for managing the fund. They must act in the best interests of members, not themselves.

A super fund is set up as a trust. That’s a legal structure where the trustee holds and manages money on behalf of other people (you and the other members).

Several government bodies keep an eye on funds:

Tax on super

Super is taxed more lightly than wages for most people:

• Employer contributions and salary sacrifice are usually taxed at 15% when they enter your fund (2026–27).
• Investment earnings are taxed at up to 15% while you’re saving.
• After you turn 60 and retire, withdrawals from most funds are usually tax-free.

Very high earners and people with very large balances pay extra tax. Most people aren’t affected.

When you can get your money

Your preservation age is the age from which you can start using your super if you retire. For anyone born on or after 1 July 1964, it’s 60.

There are a few other ways to access super, such as turning 65, terminal illness or severe financial hardship. These have strict rules.

Next steps

• Log in to myGov, link the ATO, and check which super accounts you have.
• Look at your latest super statement and check your employer is paying 12% (2026–27).
• If you think super is missing, ask your employer, then contact the ATO on 13 10 20.