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  • About your super

    Even if you don't take an active interest in managing your super, it's always good to understand some basics to help your super to grow and protect your money for the future.

    There are a few things you can do now to get your super organised to make the most of it when you're retired.

    On this page:

    Growing your super

    • The rate of super guarantee is 9.5% until June 2021. It will increase steadily each year, up to 12% by 2025–26.
    • If your super fund doesn't have your tax file number (TFN), you will be charged a higher tax on contributions and your fund may not accept some types of contributions.
    • Since 1 July 2013, employers are required to pay a super guarantee to eligible employees aged 70 or over.

    Adding to your super

    • Employment termination payments cannot be rolled over into super.
    • There are limits on the amount of contributions you can make to your super fund within a financial year. These are called contributions caps. If you exceed the cap, you may have to pay extra tax.
    • From 1 July 2018, if you are 65 years old or older and sell your home, you may be eligible to make a downsizer contribution. You can contribute up to a maximum of $300,000 into your super fund from the total proceeds of selling your home.

    Keeping track of your super

    • Information relating to your super, including your account balance and contributions reported by your super fund, can be accessed on ATO online services via myGov.
    • You can keep your savings in super indefinitely, there are no compulsory cashing-out rules.

    Withdrawing and using your super

    • Super benefits are tax-free if paid from a taxed source and you are aged 60 or over.
    • If you choose to take an income stream (or pension) from your fund, you must withdraw a minimum amount each year based on your age and your account balance.
    • Transition to retirement income stream payments in a year cannot be more than ten per cent of your super account balance (at the beginning of the financial year).
    • Unless you have unrestricted non-preserved benefits in the account you cannot take a lump sum payment in transition to retirement.
    • On 1 January 2017 there were changes to the government pension asset test free area and the assets taper rate. This means that anyone receiving or applying for an allowance will have a higher assets threshold, therefore more people will qualify for an allowance.

    See also:

    Last modified: 20 Feb 2020QC 32512