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Almost every working Australian has superannuation — and a surprising number have no idea what's in their fund, how it's invested, or whether they have lost super sitting in old accounts from previous jobs. The ATO estimates billions of dollars in lost and unclaimed super is sitting in funds across Australia, waiting to be consolidated.
This guide explains how Australian superannuation works from the ground up: the contribution rates, how it's invested, when you can access it, and how to find any super you might have lost over the years.
What Is Superannuation and How Does It Work?
Superannuation is Australia's compulsory retirement savings system. Your employer must contribute a set percentage of your ordinary time earnings into a super fund of your choice. You can't (in most circumstances) access this money until you retire — the whole point is to ensure Australians accumulate enough to fund retirement without relying entirely on the Age Pension.
The Superannuation Guarantee (SG) contribution rate has been gradually increasing for years. For the 2025/26 financial year it's 11.5%. From 1 July 2026, it rises to 12% and is legislated to stay there permanently.
| Financial Year | SG Rate | Employer Contribution on A$70,000 Salary |
|---|---|---|
| 2023/24 | 11% | A$7,700 |
| 2024/25 | 11.5% | A$8,050 |
| 2025/26 | 11.5% | A$8,050 |
| 2026/27 onwards | 12% | A$8,400 |
Choosing a Super Fund: What Actually Matters
Most Australians are defaulted into their employer's chosen fund when they start a new job. You can choose your own fund — and for many people, this decision is worth hundreds of thousands of dollars over a career.
The two factors that matter most: fees and investment returns. Fees compound against you the same way returns compound for you. A fund charging 1.5% in fees versus 0.5% costs you an extra 1% per year on your entire balance — which on A$200,000 is A$2,000/year in value erosion. Over 20 years the difference is enormous.
The Australian Prudential Regulation Authority (APRA) publishes annual performance data on all funds. Industry super funds (profit-for-members) have historically outperformed retail funds on net returns after fees. Check annualised 10-year returns and total fees before choosing.
💡 If you're new to Australia or just starting your career, set up your super fund before starting work and give your employer your details. Otherwise they'll default you into their chosen fund, which may not be optimal. Compare funds at superratings.com.au or moneysmart.gov.au.
How Super Is Invested: The Default Lifecycle
Most super funds offer a range of investment options from conservative (mostly bonds and cash) to high growth (mostly shares). If you don't choose, you're typically placed in a 'balanced' or 'MySuper' default option — approximately 60–70% in growth assets (shares, property) and 30–40% in defensive assets.
For younger workers (under 45), financial advisers generally recommend a higher growth allocation. You have 20–40 years before you need the money — short-term market volatility is irrelevant to you. A lifecycle fund automatically shifts towards conservative as you approach retirement.
| Investment Option | Typical Composition | Expected Return (long-term) | Risk Level |
|---|---|---|---|
| High Growth | 85%+ shares | 7–9% p.a. | High |
| Balanced (default) | 60–70% shares | 5–7% p.a. | Medium |
| Conservative | 30% shares / 70% bonds | 3–5% p.a. | Lower |
| Cash | 100% cash/deposits | 3–4% p.a. | Minimal |
Finding Lost Super: A Step-by-Step Guide
The ATO estimates Australians have billions of dollars in lost or unclaimed super. This happens when you change jobs and your old employer contributes to a fund you never engage with, or when you move and the fund loses contact with you.
Step 1: Log in to myGov (my.gov.au) and link to the ATO service. Step 2: Under 'Super', check 'Manage' then 'Consolidate' to see all funds with your Tax File Number attached. Step 3: If you find old funds, consolidate them into your main fund — but check insurance first. Old funds may have life or TPD insurance attached that you'd lose on closing.
⚠️ Before consolidating old super funds, check whether each fund has insurance attached. Some older industry funds provide death, total and permanent disability (TPD), or income protection insurance as part of membership. Closing the account terminates that insurance — which could matter significantly if you have a medical condition.
Super and Leaving Australia: The DASP
If you came to Australia on a temporary visa and are permanently leaving, you can claim your accumulated super through the Departing Australia Superannuation Payment (DASP). You must have left Australia permanently and your visa must have expired or been cancelled.
The DASP is taxed at source — rates range from 35% on taxable components to 65% if you're a working holiday maker. It's not a tax-free withdrawal, but for most temporary residents it's the only way to access their contributions, and it's usually worth claiming rather than leaving the money in Australia indefinitely.
Frequently Asked Questions
Superannuation (super) is Australia's mandatory retirement savings system. Employers must contribute a percentage of your earnings into a super fund on your behalf. The rate is 11.5% of your ordinary earnings in 2025/26, rising to 12% from 1 July 2026. You can also make voluntary contributions. Super is generally locked until you reach preservation age and retire.
The Superannuation Guarantee (SG) rate is 11.5% for the 2025/26 financial year (ending 30 June 2026). From 1 July 2026 (the 2026/27 financial year), it increases to 12%, where it's scheduled to remain permanently. This is the minimum percentage your employer must contribute to your super fund.
You can generally access your super when you reach preservation age (between 55–60 depending on your birth year) and retire, or when you turn 65 regardless of employment status. Early access is only permitted in very limited circumstances: terminal illness, severe financial hardship (limited amounts), compassionate grounds, or as a temporary resident permanently leaving Australia.
Log in to your myGov account (linked to the ATO) and check 'Super'. The ATO tracks all super accounts. Many Australians — especially those who changed jobs frequently — have small balances scattered across multiple funds from old employers. These can be consolidated into your chosen fund through myGov or directly with your super fund.
Super benchmarks vary, but the Association of Superannuation Funds of Australia (ASFA) suggests: A$100,000 by age 35, A$215,000 by 45, A$500,000 by 55, and A$595,000–A$690,000 by retirement (age 67) for a comfortable lifestyle for a single person.
If you're a temporary resident who has permanently left Australia, you can claim your super as a Departing Australia Superannuation Payment (DASP). Tax rates apply — ranging from 35% to 65% depending on components. Australian citizens and permanent residents cannot access super early by moving overseas.
Yes. Concessional (pre-tax) contributions like salary sacrifice are capped at A$30,000/year in 2025/26 and taxed at 15% inside the fund (lower than most marginal tax rates). Non-concessional (after-tax) contributions are capped at A$120,000/year. Catch-up concessional contributions are available for those with balances below A$500,000.
An SMSF is a private super fund you manage yourself. You control investment decisions and can invest in assets not available in retail funds (including direct property under certain rules). SMSFs require significant administration and are most worthwhile for balances above A$200,000–A$250,000. They carry full trustee responsibility.
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