Your Guide To Superannuation In Australia
Your guide to superannuation, with basics of how super works, including payment methods and caps, plus extra contributions and the different types of super funds you can have.
Superannuation is becoming a more popular topic. Why is that?
When the world feels a bit more uncertain, our financial future feels more important than ever – for young and old people alike.
In the past, younger people sometimes thought superannuation was an “old people’s thing” or something that “just happens”.
Today, younger people are taking more interest in investment and retirement savings. People at all ages realise their superannuation deserves some attention.
Neglecting your superannuation can have a significant effect on your quality of life down the track. However, if you give your superannuation a bit of attention, you can build-up a bigger chunk of cash for your future. Mix in some boosts from the tax system and it could really add up for you.
To help you take charge of your super, we’ve linked all of the helpful Etax resources about superannuation together in one place, below.
You’ll find super fund insights, starting from the basics like extra contributions, donation caps, and the different types of super funds you can have. Plus, a few tips to keep you on track for a well-funded retirement!
What is superannuation and why do we need it?
Superannuation, often referred to as “Super”, is a sort of savings and investment account that grows over time. It is specifically for your retirement years. For most people, superannuation grows because part of your salary is diverted by your employer, directly into your super fund. The government sets a minimum amount that your employer kicks in. This really adds up over time, and it grows with interest, to create a sizable account that you can rely on in the future.
As of 1 July 2025, your employer must pay at least 12% of your salary into your superannuation fund.
Every employee in Australia should tell their employer the details of their superannuation account. Then, the employer pays 12% of your earnings into that account.
If you’re self employed, you pay into a super fund account yourself (see below for tips on choosing a super fund).
It’s important to understand superannuation and how it works, so you can ensure that your money works for you throughout your working life. If you don’t pay attention, you might discover too late that something bad was happening, such as your fund had very high fees, wasn’t doing as well as other funds, or you mistakenly had multiple funds where you paid more fees than necessary, costing you big time in retirement.
Read our starter blog to get up to speed with all the superannuation need-to-know facts:
Can I pay extra money into my superannuation fund?
The simple answer is ‘Yes’!
You can pay extra money into your super fund – and many people do. You can either ask your employer to pay additional money from your pre-tax salary, or deposit extra money directly, by yourself. Extra payments can be a great way to increase your retirement income. This might also help you pay less tax along the way! Speak to a financial planner to see if this is something suited to your circumstances.
Read more about extra payments, caps and which additional payments you can claim on your tax return:
Superannuation FAQ:
What is a Unique Superannuation Identifier Number (USI)?
Your USI a number is unique to your super fund. You need to supply this number if you change superfunds and you may need to give the number to your employer when you start a new job.
How do I find my Unique Superannuation Identifier Number?
You can find your USI number on your annual superannuation statement or your super fund’s website. If you have trouble finding your USI, contact your super provider directly.
What is the difference between a Self-Managed Super Fund and other types of super funds?
A Self-Managed Super Fund, usually referred to as “SMSF”, is popular with Australians who want to control exactly how their retirement money is invested. An SMSF takes a lot more work and time. You are responsible to make sure the SMSF is managed properly. Typically, you pay extra fees to a professional for advice, accounting and auditing of your Self-Managed Super Fund.
Putting your money into an SMSF might pay off if you have certain needs for how you manage your money. However, if you don’t get good advice for managing your SMSF, this could leave your fund growing more slowly than the popular superannuation provider’s funds.
Is a SMSF something you’re considering? Take a look at our comparison:
How do I know if I’ll have enough super when I retire?
It’s good to know if you’re on track with your superannuation. How do you know if you are?
The resources below help you see if you’re on track for a modest or comfortable retirement:
Superannuation Calculators:
How much is enough?
How much super do you want to retire on?
CANSTAR
Age comparison
How much super should you have?
Effie Zahos
Retirement tracker
What kind of retirement can you afford?
Australian Super
Should I talk to a professional about my superannuation fund?
As with most financial decisions, seeking professional advice is highly recommended. When it comes to choosing and maintaining your superannuation fund, it’s no different.
Super funds are not all the same, and the insurance plans and fees connected to super funds can differ a lot.
For this reason, it’s highly recommended that you get independent professional advice as early in your working life as possible. An advisor will help you choose a good fund that suits your circumstances. They’ll assess which type of investment strategy suits you initially, and how it may change over time.
Your future is in your hands
None of us can control the future, but with superannuation, you really can change what your future financial life will look like.
Your retirement might be many years away, but when it comes, you will want to have as much money as possible. Throughout your career you can make sure your money is working for you – and growing. Looking after it, adding to it and making sure it’s in the right fund, will help keep your future financially secure.
So make superannuation part of your annual financial health check, chat with an independent advisor when you need advice, and talk to your tax agent about claiming extra super payments on your annual tax return.
Your future really is in your hands.
Please note: The information on this page is general in nature and should not be relied upon as detailed advice. Each situation is different and we recommend you seek the advice of a licensed financial planner who can assess your unique circumstances and provide you with detailed advice about the best superannuation option for you.
