How Super Works
Superannuation is a tax-effective way to save for retirement. At CSC, we work to invest your super savings in a way that works for you, helping to secure the future you want.
At its simplest, superannuation—or super—is a form of saving for your retirement. While some people think of it as a tax, it’s not. Super is an ongoing way to save for retirement and the lifestyle you want for you and your family.
How super works
- Money is put into your super by your employer, who is required by law to contribute a percentage of your income.
- This money is then pooled with money from other customers and invested so it can earn interest and grow.
- When you’re ready and eligible to retire, you can access your super, giving you the freedom to start living the lifestyle you have planned for.
Using your super
Generally, you can access your super when you reach a certain age. The earliest age that you can access your super is called your ‘preservation age’. Your preservation age can differ depending on when you were born.
If you are in a defined-benefit fund, you might be able to access your super before your preservation age.
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.Tax and your super
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 10% 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.