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What's This Super Thing?
Superannuation explained without the jargon. It's simpler than you think.
🤨 The "Huh?" Moment
You check your payslip and there's a line that says "Superannuation: $52.00". But that money didn't go into your bank account. Where did it go? Did your boss steal it?
Nope. That money went into your future. Let's break it down.
💰 Super in 30 Seconds
Superannuation (everyone calls it "super") is money your employer puts aside for your retirement. Yes, retirement. We know that feels like a million years away.
Here's the key thing: super is ON TOP of your pay, not taken out of it. If your rate is $25/hour, you get $25/hour in your account AND your employer puts extra money (12%) into your super fund.
✅ The bottom line: Super is free extra money from your employer that you can't touch yet. It's not a tax. It's not a deduction. It's a bonus for future-you.
📊 Show Me The Numbers
Example: 15 hrs/week @ $22/hr (casual)
Your weekly pay (in your bank)
$412.50
Super your employer pays (12%)
$49.50
Total cost to your employer
$462.00
That $49.50 per week goes into a super fund — basically an investment account in your name that grows over time.
What that looks like over time
After 1 year of this job
~$2,574
After 3 years
~$8,200
By age 60 (with growth)
$100,000+
💡 Compound interest magic: Even small amounts of super from your teen years grow massively over 40+ years. A few thousand dollars now could be worth tens of thousands later — without you doing anything. Time is your superpower.
⚙️ How Super Actually Works
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1
Your employer calculates 12% of your gross pay
This happens every pay cycle automatically
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2
They send it to your super fund
A super fund is a company that invests and manages the money for you
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3
Your super fund invests it
They put it in a mix of shares, property, and other investments so it grows
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4
It grows over time
Through compound interest and investment returns, your balance increases
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5
You access it at retirement (~age 60)
Then you use it to live on when you stop working
🎯 Choosing a Super Fund
When you start a job, your employer might ask you to choose a super fund. If you don't choose, they'll put you in their default fund (called a "stapled fund" system).
For now, the most important things are:
What to look for:
• Low fees — fees eat into your balance over time. Compare fees at the ATO's YourSuper tool
• Good returns — check the fund's past performance (not a guarantee, but helps)
• Insurance included — most funds include basic life insurance
• Easy app/website — so you can actually check your balance
⚠️ One fund, not many: If you've had multiple jobs, you might have multiple super accounts. Each one charges fees. Combine them into one account through myGov — it takes 5 minutes and saves you money.
🧠 Super Myths Busted
❌ Myth
"Super comes out of my pay"
✅ Truth
Super is paid ON TOP of your wage by your employer. Your hourly rate stays the same.
❌ Myth
"I'm too young to worry about super"
✅ Truth
Starting early is the single best advantage you have. $2,000 at age 16 could be worth $30,000+ by retirement thanks to compound growth.
❌ Myth
"I can never access my super"
✅ Truth
You access it at preservation age (~60). In rare cases of severe financial hardship, you may be able to access it earlier through the ATO.
❌ Myth
"My employer always pays super correctly"
✅ Truth
Unfortunately, unpaid super is common. You should check your super balance regularly through myGov and report issues to the ATO.
✅ Your Super Checklist
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Find out which super fund your employer uses
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Choose your own fund or go with the default
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Set up a myGov account and link the ATO
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Check your super balance after 3 months of work
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Consolidate if you have multiple super accounts
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Check your super is actually being paid (set a calendar reminder)
⚠️ Important Disclaimer
The information provided on this page is general in nature and does not constitute financial, tax, or legal advice. Superannuation examples are illustrative only and do not account for investment returns, fees, or individual circumstances. Before making decisions about your super, consider seeking independent advice from a qualified financial adviser.