What is it?

Superannuation (Super) is Australia’s Retirement Savings System. It is designed to allow everyone to contribute throughout their working life to eventually use to fund retirement.

Funds are generally invested into the share market and over time your balance benefits significantly from the income and capital growth.

Adding funds into super

There are a few different ways to add funds into superannuation, these generally follow two contribution types:

1.0 – Concessional Contributions

These are before tax contributions   including:

  • Employer Contributions (Super Guarantee)
    • These are contributions which your employer has to put into your super based on your wage. From 1 July 2024 the current rate is 11.50% pa.
  • Salary Sacrifice
    • These are additional contributions which you have your employer deduct from your wage and the contributions are made before tax.
  • Personal Deductible Contributions
    • These are contributions that you make personally using after tax funds and then claim a tax deduction on in your annual return.
  • Limits: $30,000 per year
  • Age Limit: You can make concessional contributions until age 67, if you are working you can make concessional contributions until age 75, beyond 75 the only contribution you can receive is employer contributions.
  • Taxation: These contributions are taxed at 15% as they enter the fund.

2.0 – Non-Concessional Contributions

These are contributions which are after tax and don’t provide a tax deduction, they are generally made from your bank account to your super fund:

  • Limits: $120,000 pa (or $360,000 for a 3-year period)
  • Age Limit: You can make non-concessional contributions until 75 years of age.
  • Taxation: These contributions are not taxed as they enter the fund.

When can you access it?

You can generally access your super when:

  • You turn 65 years of age.
    • You are able to withdraw funds tax-free from super.
  • Are 60 years of age and are retired.
    • You are able to withdraw funds tax-free from super.
  • Commencing a Transition to Retirement available from 55 years of age
    • If aged under 60 – You are taxed at your marginal tax rate less a 15% offset.
    • If you are aged over 60 – pension payments are tax free.
    • You can access up to 10% per year until you meet a full condition of release such as retiring.

The different ‘stages’ of super

Whilst you are working and building your super up your account is in accumulation phase. In this state it allows you to add funds into super. Whilst in accumulation phase the income and capital gains are taxed at 15%.

Once you retire and require funds from super you can commence an account-based pension which allows you to draw regular income to support your lifestyle expenses. In pension phase your account is 100% tax-free for income and capital gains but in turn you must draw a minimum pension payment.


We recommend you visit the following sites for more information:

This information is true and correct as of 1 July 2024, prior to making any changes we recommend you read the above Government resources and seek Financial Advice prior to making any changes.

Next Steps

If you are planning for your retirement and are looking for some help to make it happen, you can book in a complimentary 30 minute consultation with us to see where we can help via the ‘Start Your Journey’ Button above.

Please Note: This is a general guide only, we recommend that you seek advice prior to making any changes.