How does super work?

Managing your super

• A type of super account for people who don’t want to choose a super fund

  A type of super account for people who don’t want to choose a super fund

  What is MySuper?

  Many super funds offer MySuper accounts. These are accounts that have:

  • simple features
  • basic, comparable fees (and restrictions on the type of fees you can be charged)
  • a single investment option for everybody, or a single investment option based on the stage in life you are at
  • a minimum level of insurance (basic Death and Total and Permanent Disablement [TPD] insurance cover).

  MySuper accounts are designed to be simple for people to understand and to help people compare funds more easily, based on a few important criteria. They are meant to make sure people do not pay for any features they don’t want or use.

  Only super funds with a MySuper licence are able to accept default super contributions into their MySuper product. This happens when you don’t choose a super fund yourself or you don’t have a current ‘stapled’ super fund and just go with the super fund your employer choses for you.

  Am I affected?

  If you haven't nominated a super fund to your employer (and you don’t have a current ‘stapled’ super fund or it cannot accept contributions), and so you have just gone with the fund your employer chose for you, then you don't have to do anything. Your future super contributions will be paid into a MySuper account that your employer has chosen.

  If you have nominated a super fund or you have a current ‘stapled’ super fund and it is able to accept contributions for you, then you won’t be affected.

  Is MySuper right for me?

  MySuper is designed for fund members who aren’t actively involved with their super. It is a ‘one-size fits all’, ‘no-frills’ account and therefore may not be the best solution for everyone. Things to think about are:

  • What is the right level of insurance for you?
  • What is the level of investment risk you want?
  • What are the investment returns you would like?
  • What are the fees?

  For people who want their superannuation to be more tailored to their needs, a non-MySuper - or ‘choice’ - account may be better for them.

  To see if MySuper is right for you or to find out more about MySuper, contact your super fund or financial adviser.

• New ways to keep track of your super

  New ways to keep track of super

  It’s now easier to find your lost super and move all of your super into one account. This means if you have used more than one super fund in the past, you can more easily move all your savings into one account so you don’t pay more than one set of fees.

  You can check to see if you have any lost super or multiple accounts by accessing the myGov website. You also can then consolidate any lost super or unwanted accounts online.

• Topping up your super

  Topping up your super

  There are limits to the amount of money you can put into super each financial year before you pay extra tax – these are called super contribution caps. There is one cap for ‘concessional contributions’ and another for ‘non-concessional contributions’.

  A ‘concessional contribution’ includes the Super Guarantee (SG), any amounts you ‘salary sacrifice’ (before-tax voluntary contributions from your salary) into super, or any personal contributions that you claim as a tax deduction.

  If you go over your concessional super contributions cap in any year, the excess above the cap will be taxed at your personal tax rate plus interest.

  For the 2023-24 financial year, the concessional contributions cap is $27,500.

  ‘Non-concessional contributions’ include personal contributions that you have not claimed as a tax deduction. For the 2023-24 financial year, the non-concessional contributions cap is generally $110,000 but you may have a different cap depending on your personal circumstances. If you go over your non-concessional contributions cap in any year, you can elect to release the excess from the fund (less an amount that approximates the earnings while the excess was in the fund – this will be included in your assessable income and taxed at your personal tax rate).

  See the Contributions caps page for more information.