Super is money paid into a superannuation fund to help support you financially when you retire.
This article is for job seekers, visa holders, migrants, and workers who want to understand the basics of superannuation in Australia.
What is superannuation?
Superannuation, or super, is money set aside during your working life to help fund your retirement.
In most cases, your employer must pay super contributions into a super fund on your behalf. This is called the super guarantee.
The Australian Taxation Office states that the super guarantee is the minimum amount employers must pay into an eligible employee’s super fund, and the rate is 12% from 1 July 2025.
How does super work?
When you start a job, your employer may ask for your super fund details.
You can usually:
choose your own super fund
use an existing super account
use the employer’s default super fund if you do not choose one
Your employer then pays super contributions into your nominated fund during your employment.
Can I choose my own super fund?
Yes. In many cases, employees can choose which super fund their employer pays contributions into.
If you do not choose a fund, your employer may pay contributions into a default fund or follow the required stapled super fund process.
You should check your options and choose a fund that suits your needs.
Why super is important
Super is designed to help you build money for retirement.
Super funds usually invest your money in assets such as:
shares
property
managed funds
cash
fixed interest investments
Over time, investment returns and regular contributions may help your balance grow.
Choosing a super fund
When choosing a super fund, you may want to compare:
What to check | Why it matters |
Fees | Higher fees can reduce your balance over time |
Investment options | Different funds offer different risk and return options |
Performance | Past performance does not guarantee future results, but it can help you compare funds |
Insurance | Some funds include insurance such as life, total and permanent disability, or income protection cover |
Online access | Makes it easier to manage your account |
Customer service | Useful if you need help with your account |
Super funds may also offer insurance options, but insurance can reduce your super balance through premiums. Make sure you understand what is included.
Managing your super
It is a good idea to keep track of your super as early as possible.
You may want to:
check your employer is paying super
keep your contact details updated with your super fund
consolidate multiple super accounts if appropriate
review your investment option
check any insurance attached to your account
keep your tax file number updated with your fund
monitor your balance through your super fund or myGov