Superannuation
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Australia's mandatory retirement savings system in which employers must contribute a percentage of an employee's salary (11.5% as of 2025) into a regulated retirement fund.
## Superannuation
Superannuation (super) is Australia's compulsory retirement savings system. It is one of the largest pension fund systems globally.
### Key Features
| Feature | Detail |
|---------|--------|
| Employer rate (2024/25) | 11.5% of Ordinary Time Earnings |
| 2025/26 rate | 12% (final step) |
| Employee voluntary | Up to $30,000/year (concessional) |
| Preservation age | 60 |
| Total system size | ~A$3.9 trillion |
### Tax Treatment
- Contributions are taxed at a flat 15% (vs. marginal income tax rate).
- Investment earnings within super are taxed at 15%.
- Withdrawals after age 60 are tax-free.
### Impact on Salary
Super is a legally mandated employer cost on top of gross salary. An employee earning A$100,000 receives an additional A$11,500 in super contributions, making total compensation A$111,500.