How Superannuation Works in Australia
Employers must contribute 11.5% of your ordinary time earnings to superannuation in 2024-25 rising to 12% from July 2025. With $3.9 trillion in Australian super funds it is one of the world's largest retirement savings pools per capita.
Key Strategies to Maximise Super
Salary sacrifice by contributing extra pre-tax income to super via your employer saves on income tax. Concessional contributions are taxed at just 15% versus your marginal income tax rate which may be 32-47%. The First Home Super Saver Scheme allows first home buyers to save up to $50,000 inside super for a house deposit at the favourable super tax rate.