Superannuation (Australia)

Superannuation is Australia's compulsory retirement savings system, under which employers must contribute a legislated percentage of employee earnings into a super fund.

Superannuation ("super") is Australia's compulsory retirement savings system. Under the Superannuation Guarantee, employers must contribute a legislated percentage of an employee's ordinary time earnings into a complying super fund — 12 percent from 1 July 2025.^[1]

Structure

Contributions are invested by super funds — industry, retail, corporate, public-sector or self-managed funds — and are generally preserved until retirement age. Concessional tax rates apply to contributions and fund earnings, making super the dominant long-term savings vehicle in Australia, roughly comparable to Israel's Kupat Gemel and pension funds.^[2]

Regulation

Super funds are prudentially regulated by APRA, while conduct and disclosure are overseen by ASIC.^[3]

Sources

[1] Super for individuals — Australian Taxation Office Primary source
Cited for: Superannuation Guarantee at 12 percent of ordinary time earnings from 1 July 2025
[2] Super for individuals — Australian Taxation Office Primary source
Cited for: Concessional tax on contributions and earnings; preservation until retirement
[3] Australian Securities and Investments Commission — ASIC Primary source
Cited for: Funds prudentially regulated by APRA; conduct overseen by ASIC

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