- What is the current superannuation guarantee rate?
- The Superannuation Guarantee (SGC) rate is 12% from 1 July 2025 (FY2025–26) — the legislated final rate after years of gradual increases. Your employer must pay at least this rate of your ordinary time earnings into your super fund — quarterly at minimum. Ordinary time earnings generally include your regular salary, commissions, and allowances, but not overtime.
- How do I choose a super investment option?
- Most super funds offer several investment options ranging from conservative (bonds, cash) to high growth (mostly shares). Younger members with decades until retirement are generally advised to choose a higher-growth option — they can ride out short-term volatility and benefit from higher long-term returns. As you approach retirement, a more conservative allocation reduces the risk of a market downturn cutting your balance just before you need it. If you don't choose, most funds place you in a MySuper 'default' option, typically a balanced or lifecycle fund.
- How much super do I need to retire comfortably in Australia?
- The Association of Superannuation Funds of Australia (ASFA) defines a 'comfortable' retirement as requiring approximately $595,000 for a single person and $690,000 for a couple (2024 figures, assuming they also receive some Age Pension). A comfortable lifestyle funds regular leisure activities, good health insurance, and occasional travel. The Age Pension supplements super for many Australians — the full single rate is about $1,116/fortnight (2024) and is means-tested. Your required balance depends heavily on your lifestyle expectations, other income, and how long you live.
- When can I access my superannuation?
- You can generally access super when you reach your preservation age and retire. For those born after 30 June 1964, the preservation age is 60. You can access super regardless of work status once you turn 65. Early access is permitted in limited circumstances: severe financial hardship, compassionate grounds (medical expenses, mortgage default), terminal illness, or temporary incapacity. The First Home Super Saver Scheme also allows up to $50,000 in voluntary contributions to be withdrawn for a first home purchase.
- Should I make extra contributions to super?
- Extra contributions — especially salary sacrifice — can significantly accelerate your super balance while saving income tax. If you're in the 32.5% tax bracket, each dollar sacrificed to super is taxed at 15% instead of 32.5%, saving 17.5 cents per dollar. The concessional contribution cap is $30,000 per year, including your employer's 12% SGC. Unused cap amounts from the past 5 years can be 'carried forward' and used in a single year. After-tax (non-concessional) contributions are capped at $110,000/year or up to $330,000 over 3 years under the bring-forward rule.
- What fees should I watch out for in super?
- Super fund fees directly reduce your long-term balance — compounded over decades, even a 0.5% difference in fees can cost hundreds of thousands of dollars. Common fees include an administration fee (flat dollar amount per year), an investment management fee (a percentage of your balance, typically 0.1%–1.5% p.a.), and performance fees on some options. Industry super funds (not-for-profit) typically charge lower fees than retail funds. Use the ATO's YourSuper comparison tool to compare fees and returns across all MySuper products.