The Complete Guide to
Superannuation in Australia 2026
Superannuation is Australia's compulsory retirement savings system. Your employer contributes 12% of your salary directly into a super fund. By retirement at 67, this should give most Australians between $300,000 and $700,000 — but whether it's enough depends on how you manage it.
1. What Is Superannuation and How Does It Work?
Superannuation ("super") is a long-term savings arrangement designed to provide income in retirement. Unlike a voluntary savings account, super is mandatory — your employer must contribute on your behalf under the Superannuation Guarantee (SG).
The basic flow is: Employer pays SG (12% of your salary) → Super fund invests it → You access it at retirement (from age 60). You can also make voluntary contributions (salary sacrifice or personal after-tax) to boost your balance.
Super funds invest your money across asset classes: Australian shares, international shares, bonds, property, and cash. Most funds offer pre-mixed options like "Growth" (70-90% shares), "Balanced" (50-70% shares), or "Conservative" (20-40% shares). Younger members typically benefit from a Growth option due to the longer time horizon.
2. The Superannuation Guarantee: 12% in 2026
The SG rate has progressively increased from 9.5% (pre-2021) to 12% as of 1 July 2025. For paydays from 1 July 2026, your employer must pay SG on your qualifying earnings (QE) — your pay for ordinary hours plus commissions, most bonuses and salary-sacrificed amounts, but not overtime. QE replaced ordinary time earnings (OTE) as the SG base under payday super; it is broader, so employees paid partly on commission or bonus are entitled to more super than the old OTE basis produced.
| Year | SG Rate |
|---|---|
| 2021-22 | 10% |
| 2022-23 | 10.5% |
| 2023-24 | 11% |
| 2024-25 | 11.5% |
| 2025-26 | 12% |
| 2026-27 | 12% |
The $450/month minimum earnings threshold was removed from 1 July 2022, meaning all employees receive SG regardless of how little they earn.
3. Contribution Caps: Concessional and Non-Concessional
Concessional contributions (pre-tax) are capped at $32,500/year (2026-27, up from $30,000 after indexation). This includes:
- Employer SG contributions
- Salary sacrifice contributions
- Personal deductible contributions
Concessional contributions are taxed at 15% inside super — significantly less than most marginal tax rates. For someone on $100,000/year (37% marginal rate), every $1 salary sacrificed saves 22 cents in tax.
Non-concessional contributions (after-tax) are capped at $130,000/year (2026-27), or $390,000 over 3 years using the bring-forward rule. These aren't taxed again inside super because you've already paid tax on them.
💡 Carry-forward rule: If your total super balance is under $500,000, you can carry forward unused concessional cap amounts from the previous 5 financial years. This enables a one-off tax-effective boost by contributing more than $32,500 in a single year.
4. Types of Super Funds
There are four main types of super fund in Australia:
- MySuper — Simple, low-cost default option mandated by APRA. Every employer must offer a MySuper option. Fees are capped and performance-tested annually.
- Industry funds — Run as profit-for-members (e.g., AustralianSuper, REST, Hostplus, UniSuper). Typically lower fees than retail funds. Some outperform retail funds over the long term.
- Retail funds — Run by banks and financial institutions (e.g., AMP, Colonial First State, MLC). Broader investment choice but sometimes higher fees.
- Self-Managed Super Funds (SMSF) — You control the investments. Maximum 6 members. Suitable for balances above $200,000–$500,000 due to fixed admin costs. Regulated by the ATO. Requires ongoing compliance and auditing.
5. Super Investment Options
Most funds offer several pre-mixed investment options. The right choice depends primarily on your age and how many years until you need the money.
| Option | Growth Assets | Typical For |
|---|---|---|
| High Growth | 85-100% | Under 40, 20+ yrs to retire |
| Growth | 70-85% | 30-50, 15+ yrs |
| Balanced | 50-70% | 40-55, 10-15 yrs |
| Conservative | 20-40% | 55+, approaching retirement |
| Cash | 0% | Capital preservation, short term |
6. How to Find Lost Super
The ATO holds over $16 billion in lost and unclaimed super. You might have lost super if you've changed jobs, moved address, or had multiple funds. Here's how to find it:
- Log into myGov and link your ATO account
- Go to "Super" → "Manage" → view all your super accounts
- Consolidate by transferring smaller accounts into your main fund
Consolidating saves you from paying multiple sets of admin fees and insurance premiums. The average Australian with lost super is missing $13,800.
7. Salary Sacrifice Explained
Salary sacrifice means redirecting part of your pre-tax salary into super. Instead of receiving the money as take-home pay (taxed at your marginal rate), it goes into super (taxed at just 15%).
Example: $10,000 Salary Sacrifice vs Take-Home
Salary: $100,000 (37% marginal rate)
As take-home: $10,000 → pay $3,700 tax → $6,300 in your pocket
As salary sacrifice: $10,000 → pay $1,500 super tax → $8,500 in your super
Tax saving: $2,200 — plus compound growth on the extra $2,200 over decades
8. Government Co-Contribution
If you earn less than $64,293/year (2026-27) and make a personal after-tax super contribution, the government matches 50 cents per dollar, up to $500/year. To receive the full $500, you need to:
- Earn $49,293 or less
- Contribute $1,000 of after-tax money to your super
- Lodge your tax return
The co-contribution phases out between $49,293 and $64,293 (2026-27). Even a partial co-contribution is free money with guaranteed 50% returns on your contribution.
9. How Super Is Taxed
| Stage | Tax Rate |
|---|---|
| Concessional contributions | 15% (or 30% if income > $250K — Division 293) |
| Investment earnings (accumulation) | 15% |
| Capital gains (assets held 12+ months) | 10% (1/3 CGT discount) |
| Investment earnings (pension phase) | 0% |
| Withdrawals (age 60+) | 0% |
| Withdrawals (preservation age to 59) | 0% up to low-rate cap ($235K), 15% above |
10. Recent & Upcoming Super Changes
Four confirmed changes are reshaping super right now — worth checking against your own setup:
- SG rate reached 12% on 1 July 2025 — the final step of the legislated Superannuation Guarantee increase. Every eligible employee now receives 12% of qualifying earnings into super.
- Payday Super — in force since 1 July 2026. Employers must now pay your SG at the same time as your salary or wages (each pay cycle) instead of at least quarterly, with the contribution reaching your fund within 7 business days of payday. Your contributions get invested sooner and underpayments are far easier to spot.
- The SG earnings base widened on 1 July 2026. Qualifying earnings (QE) replaced ordinary time earnings, folding in commissions, most bonuses relating to ordinary hours and salary-sacrificed amounts. The 12% rate is unchanged, but the base it applies to is broader — check your payslip if any part of your pay is commission or bonus.
- Division 296 — proposed for FY 2026-27. An additional 15% tax on the portion of earnings attributable to total super balances above $3 million (the "better targeted super concessions" measure). It affects a small share of members but is the most debated super change in years — verify its current legislative status before relying on it.
General information only, current as of FY 2026-27 — super rules change frequently. Confirm the latest position on ato.gov.au and consider licensed advice for your own situation.
How Does Your Super Compare by Age?
Benchmarking your balance against your age group is the fastest way to know if you're on track. On ATO Taxation Statistics 2023-24 the average super balance climbs from $27,822 at 25–29 to $238,616 at 50–54 — but averages hide a wide spread, and the median for those bands is only $21,395 and $161,375, so the median and top-10% figures matter more than the average when you are judging your own balance.
Superannuation Fast Facts 2026
| Item | 2026-27 |
|---|---|
| SG Rate | 12% |
| Concessional cap | $32,500/year (FY2026-27) |
| Non-concessional cap | $130,000/year (FY2026-27) |
| Bring-forward cap | $390,000 / 3 years |
| Carry-forward threshold | Balance < $500,000 |
| Division 293 threshold | $250,000 income |
| Transfer balance cap | $2.1M (FY2026-27) |
| Preservation age | 60 |
| Age Pension age | 67 |
| ASFA Comfortable (single) | $630,000 |
| ASFA Comfortable (couple) | $730,000 |
| ASFA Modest (single) | $110,000 |
| Low-rate cap amount | $235,000 |
| Tax on contributions | 15% |
| Tax in pension phase | 0% |
Sources: ATO, APRA, ASFA. Current as of FY 2026-27.
Track Your Super with Richify AI
Richify AI connects your super alongside investments, property, and savings — giving you a complete retirement picture and a personalised plan.
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❓ Frequently Asked Questions
What is superannuation in Australia?
Superannuation (super) is Australia's compulsory retirement savings system. Your employer contributes a percentage of your salary (12% in 2026-27, called the Superannuation Guarantee) into a super fund that invests the money on your behalf.
You generally can't access it until you reach preservation age (60 for most Australians).
How much should I have in super by age 30, 40, 50?
On ATO Taxation Statistics 2023-24, the average (mean) super balance is $54,009 at 30–34, $134,054 at 40–44 and $238,616 at 50–54. The median — the middle person, and the better personal benchmark — is lower: $40,426, $100,330 and $161,375 on the same bands, because a small number of very large accounts pull the average upward.
To be on track for ASFA's comfortable retirement ($630,000 at 67 for a single homeowner, revised February 2026), ASFA's own Super Balance Detective targets are $44,500 at 30, $146,000 at 40 and $282,500 at 50 for someone earning $75,000 a year (ASFA's $75k track; it rebuilt the Detective in September 2026) — so the typical Australian is running behind the comfortable standard at every one of those ages. Use our Super Calculator to see where you stand.
What are the super contribution caps in 2026-27?
Concessional (pre-tax) contributions: $32,500/year from 1 July 2026, up from $30,000 after indexation to average weekly ordinary time earnings — this includes employer SG, salary sacrifice, and personal deductible contributions, and is taxed at 15% inside super. Non-concessional (after-tax): $130,000/year, up from $120,000, or $390,000 over 3 years using the bring-forward rule.
Non-concessional contributions are not taxed again inside super.
Is Richify a licensed financial adviser?
No. Richify is an AI-powered personal finance education tool. It does not hold an Australian Financial Services Licence (AFSL) and does not provide personal financial advice.
All content is educational and general in nature. For personal advice, consult a licensed financial planner.
How is super taxed?
Super contributions are taxed at a flat 15% (concessional contributions). Investment earnings inside super are taxed at 15%.
In pension phase (after retirement, typically from age 60), both investment earnings and withdrawals are tax-free. This makes super one of the most tax-efficient structures available to Australians.
What is salary sacrifice into super?
Salary sacrifice means directing part of your pre-tax salary into super instead of receiving it as take-home pay. The amount is taxed at 15% inside super rather than your marginal tax rate (30%, 37% or 45% in 2026-27, plus the 2% Medicare levy).
This reduces your tax bill and boosts your retirement savings. The concessional contribution cap of $32,500/year (2026-27) includes salary sacrifice plus employer SG.
How do I find lost super?
The ATO holds over $16 billion in lost and unclaimed super. Search via myGov (link your ATO account), contact your previous employers, or use the ATO's SuperSeeker tool.
Once found, consolidate into one fund to save on multiple sets of fees and insurance premiums.
What is the government co-contribution?
If you earn less than $64,293/year (2026-27) and make a personal after-tax super contribution, the government will match 50 cents per dollar, up to a maximum of $500/year. To get the full $500, you need to contribute $1,000 and earn $49,293 or less.
The co-contribution phases out between $49,293 and $64,293.
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