How super works
Let’s take a look at an overview of what superannuation is and how it works.
What is super?
At its simplest, super is a form of savings. While some people think of it as a tax, it's not. Super is an ongoing way to save for the future.
Why it matters where you invest your super
Not all funds are the same, and at CSC we’re privileged to be a niche provider with a well-defined member base. This enables us to try to really understand your needs, rather than just deliver services for the ‘average Australian’.
No matter the scheme, we manage and administer each with the same investment principles, and we aim to deliver competitive, transparent and fair outcomes to all of our members, whether you’re retiring soon or have many years to go.
The money you contribute into your super is invested according to strategies that are designed to work for your benefit. Our focus is always on delivering the best long-term results for your future, which is why we adopt reliable, innovative strategies to grow and preserve your retirement savings.
The power of compound interest
The long-term nature of superannuation means it is even more important to make an appropriate investment choice for your life stage and goals. As each year goes by, any earnings that your super returns are reinvested—essentially giving you the potential to earn investment returns on investment returns.
In addition, generally speaking, the higher your contributions to super, the higher your retirement balance is likely to be, especially once compounding is taken into account.
Super is there for you through the big events in your life.
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It can help you save your first home.
The government's First Home Super Saver Scheme allows you to make voluntary contributions to your super, which you can withdraw later to buy your first home, helping you to save your deposit in a tax-effective environment.
For further information, including a full lists of eligibility criteria can be found at Buying your first home.
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It can help to protect you from the unexpected.
PSSap members
If you find yourself unable to work due to sickness or injury, our flexible lifePLUS insurance is there to help you through today and to secure your tomorrow.
ADF Super members
When you join the ADF, if you’re eligible you’ll automatically get Death and Invalidity benefits through ADF Cover at no extra cost to you.
If the unexpected happens after you leave the ADF, and you become sick or injured, our flexible lifePLUS Protect insurance cover gives you peace of mind today and secures your tomorrow.
ADF Cover lifePLUS Protect insurance
And of course, super is with you in retirement.
After a lifetime of working hard, we support you with a range of services to prepare for and enjoy your life after full-time work.
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Super can be with you for life.
The fact is, you're likely to have a range of jobs and even careers in your lifetime. Most people these days will have between 12 and 15 different jobs in their life.
PSSap and ADF Super offer flexibility no matter where life takes you.
Even if you stop working for the APS or leave the ADF, you can take your super with you to your next job1, which means you can continue to enjoy the benefits you've become accustomed to.
1Subject to some conditions.
Super and tax
Since super is a form of income, it’s taxed by the Australian Government. Generally, super can be taxed when making contributions, on your investment earnings and when accessing it in retirement.
Super is with you for the big events in life—like job changes or unexpected circumstances—and in your day-to-day living—like knowing you are covered by insurance.
It’s important to understand what super means for you—how it can help you achieve your goals and support you throughout life’s ups and downs.
Add to your super
Beyond what your employer contributes for you, you may want to add more money to your super through your own contributions. This could be before your income is taxed, called ‘salary sacrificing’, or after. You might also be eligible for some government contributions. Visit ato.gov.au for more information on what government contributions are available and their eligibility criteria.
Combine your super
If you have multiple super funds, you can combine them. Having only one super account can mean less paperwork and reduced fees, which can make a big difference to your total balance when you retire.
Employers are required by law to contribute a percentage of your income directly to your super. Most Australian Public Service (APS) employers pay 15.4% and the Australian Defence Force (ADF) pays 16.4%, which is more than the 11.5% Super Guarantee most Australians receive.
However, different super funds and employers may have different contribution rates.
Commonwealth Superannuation Corporation (CSC) looks after super funds designed specifically for Australian Government and Defence Force employees. With over 30 years’ experience, you can count on us to help you navigate the world of super, but ultimately you are in control of your super.
As a not-for-profit, we focus on achieving your goals rather than worrying about delivering profits to shareholders. We invest your money using strategies designed to work for your benefit. Our focus is always on delivering the best long-term results for your future.
We know super can be hard to understand, and we’re dedicated to ensuring you’re not left in the dark. We have a range of advisors, events and tools to help you find your way, wherever life takes you.
We’re your guide.
Why CSC
Proudly designed exclusively for the Australian Government and Defence Force. Providing you with the certainty for life you need.
Read more about Why CSC