Compare a wide range of superannuation products
When did superannuation start?
Australia’s modern superannuation system – in which employers make compulsory contributions to their employees – started in 1992. However, before that, there were various restricted superannuation schemes applying to certain employees in certain industries. The very first superannuation scheme was introduced in the 19th century.
Who can open a superannuation account?
Superannuation accounts can be opened by Australians, permanent residents and temporary residents. You’re automatically entitled to superannuation if:
What are the age pension's age rules?
Australians must be aged at least 65 years and 6 months to access the age pension. This eligibility age is scheduled to increase according to the following schedule:
| Date | Eligibility age |
|---|---|
| 1 July 2019 | 66 years |
| 1 July 2021 | 66 years and 6 months |
| 1 July 2023 | 67 years |
Is superannuation paid on overtime?
As the Australian Taxation Office explains, there are times when superannuation is paid on overtime and times when it isn’t.
Here is the ATO’s summary:
| Payment type | Is superannuation paid? |
|---|---|
| Overtime hours – award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates | No |
| Overtime hours – agreement prevails over award | No |
| Agreement supplanting award removes distinction between ordinary hours and other hours | Yes – all hours worked |
| No ordinary hours of work stipulated | Yes – all hours worked |
| Casual employee: shift loadings | Yes |
| Casual employee: overtime payments | No |
| Casual employee whose hours are paid at overtime rates due to a ‘bandwidth’ clause | No |
| Piece-rates – no ordinary hours of work stipulated | Yes |
| Overtime component of earnings based on hourly-driving-rate method stipulated in award | No |
Can my employer use money from my superannuation account?
No, your employer can’t touch the money that is paid into your superannuation account.
What fees do superannuation funds charge?
Superannuation funds can charge a range of fees, including:
What are reportable employer superannuation contributions?
Reportable employer superannuation contributions are special contributions that an employer makes on top of the regular compulsory contributions. One example would be contributions made as part of a salary sacrifice arrangement.
How much superannuation do I need?
According to the Association of Superannuation Funds of Australia (ASFA), here is how much you would be able to spend per week during retirement:
| Lifestyle | Singles | Couples |
|---|---|---|
| Modest | $465 | $668 |
| Comfortable | $837 | $1,150 |
Here is the superannuation balance you would need to fund that level of spending:
| Lifestyle | Singles | Couples |
|---|---|---|
| Modest | $50,000 | $35,000 |
| Comfortable | $545,000 | $640,000 |
These figures come from the March 2017 edition of the ASFA Retirement Standard.
The reason people on modest lifestyles need so much less money is because they qualify for a far bigger age pension.
Here is how ASFA defines retirement lifestyles:
| Category | Comfortable | Modest | Age pension |
|---|---|---|---|
| Holidays | One annual holiday in Australia | One or two short breaks in Australia near where you live | Shorter breaks or day trips in your own city |
| Eating out | Regularly eat out at restaurants. Good range and quality of food | Infrequently eat out at restaurants. Cheaper and less food | Only club special meals or inexpensive takeaway |
| Car | Owning a reasonable car | Owning an older, less reliable car | No car – or, if you do, a struggle to afford the upkeep |
| Alcohol | Bottled wine | Casked wine | Homebrew beer or no alcohol |
| Clothing | Good clothes | Reasonable clothes | Basic clothes |
| Hair | Regular haircuts at a good hairdresser | Regular haircuts at a basic salon | Less frequent haircuts or getting a friend to do it |
| Leisure | A range of regular leisure activities | One paid leisure activity, infrequently | Free or low-cost leisure activities |
| Electronics | A range of electronic equipment | Not much scope to run an air conditioner | Less heating in winter |
| Maintenance | Replace kitchen and bathroom over 20 years | No budget for home improvements. Can do repairs, but can’t replace kitchen or bathroom | No budget to fix home problems like a leaky roof |
| Insurance | Private health insurance | Private health insurance | No private health insurance |
How can I keep track of my superannuation?
Most funds will allow you to access your superannuation account online. Another option is to manage your superannuation through myGov, which is a government portal through which you can access a range of services, including Medicare, Centrelink, aged care and child support.
What are my superannuation obligations if I'm an employer?
Employers are required to pay superannuation to all their staff if the staff are:
This applies even if the staff are casual employees, part-time employees, contractors (provided the contract is mainly for their labour) or temporary residents.
Promoted
Lifecycle Investment - High Growth
11.50%
p.a
$507
10.70%
p.a
Promoted
High Growth (Lifecycle investment)
10.10%
p.a
$457
11.00%
p.a
Promoted
Lifecycle Investment - Balanced
9.50%
p.a
$477
10.00%
p.a
Promoted
Balanced (Lifecycle investment)
8.40%
p.a
$422
10.10%
p.a
