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What is super and how does it work?

Superannuation is a type of investment that helps you to self-fund your retirement. Over your working life, your employers will contribute money into a super fund.

The super fund then invests that money on your behalf with the aim of growing your super over time. Once you retire or reach preservation age, you can access your super.

Super aims to offer investment returns that may of previously only been available to the wealthy investors. Super allows everyday people to pool together their money and invest on a large scale.

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How much does my employer put in my super?

Your employer will contribute a percentage of your pay into a super account in addition to your regular pay. This is called the Superannuation Guarantee (SG) rate and it's currently 12%.

Since 2022, the SG rate has increased in 0.5% increments each year. As of 1st July 2025, there are no other planned increases to the SG rate, so we can expect that the rate will hold at 12%.

How does my super grow?

Over your working life, you will be in the accumulation phase. During this phase, your employer will make the standard 12% employer contributions, but there are many other ways to grow your super.

Salary sacrifice is when you contribute extra money into your super account from your pre-tax salary. This means you will avoid the income tax rate and pay a concessional tax rate up to a certain limit.[S1]

You can also make contributions from your after-tax pay called personal contributions if you choose.

When can I access my super?

There are a number of conditions for release of your super. For example, if you become injured, sick, disabled to a degree that you can no longer work for an extended period of time. There are other conditions of release, depending on your circumstances.

Generally, most people wait until they reach preservation age, which is when everyone can access their super.

Many people work past their preservation age, so they may continue to work at reduced hours and they can continue to invest their super. It depends on your personal circumstances what you might decide to do.

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[S1] Before contributing, consider the current annual contribution limits. Exceeding these limits may reduce any tax benefits you could receive. Visit Grow your super for more information.