The Ethical Accountant

Youth Employment Hub

Module 2

Superannuation (Super)

Understanding retirement savings and why super matters for your future

What is Superannuation?

Superannuation (or 'super') is money that your employer pays into a special retirement savings account for you. This money is invested and grows over time. You can access it when you retire (usually around age 60-67). Super is separate from your wages - it's paid ON TOP of your salary.

💡 Important:

Super is NOT deducted from your pay. If you earn $800, you receive the full $800 PLUS your employer contributes an additional amount to your super account.

Superannuation Guarantee Rate
How much your employer must contribute

12%

of your ordinary earnings

Employers must pay 12% of your ordinary earnings into your super account. This is called the Superannuation Guarantee (SG).

📊 Example:

If you earn $800 in a week, your employer must pay an additional $96 (12% of $800) into your super account. You receive the full $800 in your pay, plus the $96 goes into super.

Eligibility for Workers Under 18
AgeHours RequirementSuper Required?
Under 1830 hours or less per week✗ No
Under 18More than 30 hours per week✓ Yes
18 or overAny hours✓ Yes
Why Super Matters for Your Future

Even though retirement seems far away, super is important because of compound interest. The earlier you start saving, the more your money grows. Money saved in your teens can be worth much more by retirement because it has decades to grow through investment returns.

Starting at 18

$500,000+

Potential super balance at retirement

Starting at 30

$300,000+

Potential super balance at retirement

*Estimates based on average earnings and investment returns. Starting early makes a huge difference!

Key Points to Remember
  • Super is paid BY your employer, not deducted from your wages
  • You can't access super until you retire (except in special circumstances)
  • Your super is invested and grows over time through compound interest
  • You can choose which super fund your employer pays into
  • Check your super balance regularly through myGov
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