Whether you’re a teenager, a young adult, or helping someone new to the workforce, learning the basics is easier than you might think. Here, we’ll cover some of the key topics to help you get started, including the rules around superannuation for minors.
What is superannuation?
Superannuation, or super, is a savings plan designed to make sure you have money set aside for life after work. Your balance grows through super contributions from your employer (and possibly you). That money is then invested to help it grow even more. Think of it as a long-term investment in your future!
Key terms to know
- Contributions: This is simply the money that goes into your super—mostly from your employer, but you can also choose to add extra if you want to boost your balance.
- Investment options: These are the choices for how your super is invested. Generally, some options are low-risk and grow slower, while others are higher risk with the chance for bigger returns. You can choose based on what you're comfortable with.
- Investment returns: This is the gain (or loss) your super makes from being invested.*
- Fees: Fees generally cover the operating costs and management of your account. Depending on your fund, these might include administration fees, investment fees, and other costs.
- Stapling: This government rule means your super account follows you from job to job. So, when you change jobs, you can choose to keep using the same account instead of starting a new one and having multiple funds.
- Ordinary time earnings: Your ordinary time earnings (OTE) is the amount of money you earn from your ordinary work hours – such as salaries and wages.
The superannuation guarantee
Your super journey usually begins when you start working. By law, most employers must pay a percentage of your ordinary time earnings into your super account – this is called the superannuation guarantee (SG). The SG rate has gradually increased over recent financial years, so it's important to stay up to date. Check out the current and past SG rates here!
The SG rules vary depending on your age and hours worked. Generally, you're eligible for super payments if you’re an employee for SG purposes and:
| You're under 18 | You're 18 or over |
| and work more than 30 hours a week regardless of how much you earn. | regardless of how many hours you work |
Whether you work full-time, part-time, or casually, your employer generally must pay you super. It's important to know these rules and make sure you receive what you're entitled to.
Growing your balance: super contributions
While your employer contributes to your super, you can also boost your balance with voluntary contributions. This could include setting up salary sacrifice, where part of your pre-tax pay goes directly into your super. This not only helps boost your super but also potentially reduces the amount of tax you pay.
There are many ways to make voluntary contributions – learn more here.
Investing your super
Once your super starts building, the money doesn’t just sit there. Your balance is invested in assets, such as shares, bonds, cash and property, to help it grow through returns over time. But don’t worry—you don’t need to be an expert – your fund will generally manage the investments for you.
All you need to do is choose a super fund and select the investment option(s) that suit your risk appetite and long-term goals.
For many of us, super is the first step into the world of investing, so it’s worth exploring your options and considering what you're comfortable with. Some choices require more involvement, while others are more hands-off.
At UniSuper, we offer 16 investment options, each designed with different strategies, assets, risk levels and goals. Investing your super doesn’t have to be complicated— learn the basics here.
Compounding returns*
A key factor in starting your super early is compounding returns. This is when you earn positive investment returns on your original contributions and then earn returns on those returns. Essentially, the goal is for your money to make money and for that money to make more money!
In super, compounding happens automatically. The positive returns you make from your investments are reinvested, so your balance can grow over time. The earlier you start, the longer your super has to benefit from compounding returns. The longer it stays invested, the more it can grow. That’s why even if retirement seems far off, starting early can really pay off.
Choosing a super fund
When you start a new job, you’ll usually have the option to choose which super fund your employer contributes to. If your employer gives you a choice, take the time to compare super funds and find one that suits what’s important to you, e.g. low fees, strong long-term investment performance, and excellent services.
Once you’ve decided which fund, you’ll need to let your employer know by completing the Superannuation standard choice form, which can be found on the ATO website, and returning it to them.
How to open a UniSuper account
If you’re thinking about joining UniSuper, it’s simple to get started!
Our Personal Account is easy to manage and can be taken with you from job to job—so you can keep all the benefits of being a UniSuper member no matter where you go. With UniSuper, you’ll enjoy award-winning resources and competitive fees for actively managed super, meaning more of your money will stay invested in you!
To join UniSuper, you must be at least 15 years old and live in Australia. Check out how to join UniSuper for more details and our online application.
Once you’ve joined, you can notify your employer by filling out our Super Choice—fund nomination form and returning it to them. Members can also access a pre-filled version of this form through their online account.
Important! If you’ve started working with an employer who’s partnered with UniSuper, they can open an Accumulation 1 account for you, so there’s no need to fill out this application. If you're unsure whether your employer is partnered with UniSuper, it’s a good idea to check with them or contact us to confirm.
Final thoughts
Just because the end goal of superannuation is retirement doesn’t mean you have to wait until then to get organised. By getting your super set up now, even if you’re under 18 or just entering the working world, you’re giving yourself a better chance to achieve the financial future you want.
The earlier you start, the easier it could be for you down the line —it’s the long game, but it works!
Helpful links
- How much super should you have
- Superannuation guarantee
- Grow your super
- Salary sacrifice
- How to join UniSuper
*Investment returns can be positive or negative and are applied by calculating a specific crediting rate for each investment option, net of tax, investment fees and costs. All investments, including super, have some risk, and returns on investment may go up or down over time.
The information is of a general nature and doesn’t consider your personal circumstances. Before making decisions, you should consider whether the information is appropriate for your circumstances otherwise seek financial advice. Consider UniSuper’s PDS and TMD on its website and your circumstances before making decisions, because we haven’t.