What Is Super?

What Is Super?

Superannuation is money your employer sets aside for you over time, to help support you financially when you retire.

It’s separate from your wages and goes into a special account called a super fund, where it’s invested and grows over time.

Let’s break it down in a way that actually makes sense.

Why Does Super Matter?

Super might sound like something for grown ups, but it’s one of the most important ways to build your financial future.

Even small amounts from a part-time or casual job can turn into thousands by the time you’re older. Starting early means:

• More time for your money to grow
• Less chance of losing track of it
• A stronger foundation for your future

How Does Super Work?

When you get paid, your employer contributes a percentage of your earnings into your super fund.

• As of 1 July 2024, this rate is 11.5%. (This contribution rate is set to increase to 12% on 1 July 2025)
• For example, if you earn $100, your employer adds $11.50 to your super
• This money is invested and grows over time

Am I Eligible for Super?

Since 1 July 2022, the old rule that said you had to earn $450 per month has been removed.

• If you're 18 or older, your employer must pay super on all your earnings
• If you're under 18, your employer must pay super if you work more than 30 hours in a week

This applies to casual, part-time and full-time jobs.

What’s a Super Fund?

A super fund is where your super is held and invested until you retire.

You can:

• Use the default fund your employer offers
• Choose your own fund
• Combine multiple funds later if needed

If you don’t have a super fund yet, you can sign up for one online. One option is Hostplus, a super fund that supports thousands of young Australians. Once you're signed up and eligible, your employer can start paying super into your fund.

Our Friends at Hostplus

We know super can feel confusing, especially when you're just starting out. That's why we've teamed up with our friends at Hostplus, one of Australia’s leading super funds, to help make it easier to understand.

They’ve supported thousands of young people in learning how super works, why it matters, and how to get started. You can find out more at hostplus.com.au/members.

Whether you're about to start working or just getting prepared, understanding super is one of the smartest moves you can make.

You're already ahead of the game.

Disclaimer:

The information provided on this page is general in nature and does not take into account your personal financial situation, needs or objectives. It is not financial product advice. Before making any financial decisions, you should consider whether the information is appropriate for you and seek advice from a licensed financial adviser. You should also read the relevant Product Disclosure Statement (PDS) before making any decisions about superannuation.