Superannuation grows from two forces working together: your employer's compulsory 12% contribution, and years of compound investment growth on top of it. Small differences early in a career compound into large differences by retirement.
The Super Guarantee baseline
Employers must contribute 12% of your ordinary time earnings for 2026-27 — this is the legislated minimum, unrelated to how well your fund performs. On a $90,000 salary, that's $10,800 a year going into your super before any investment return is applied.
Why fees matter more than people expect
A fund charging 1.5% in annual fees versus one charging 0.5% doesn't sound like a big gap — but compounded over a 30-year career, that 1 percentage point difference can reduce a final balance by well over $100,000. It's worth comparing your fund's fee structure against alternatives periodically.
Voluntary contributions compound the effect
Salary sacrificing additional pre-tax income into super is taxed at just 15% inside the fund, versus your marginal income tax rate if taken as salary — for most earners above the tax-free threshold, this is a meaningful tax advantage, up to the $32,500 concessional cap for 2026-27.
Project your own balance with the Australia Superannuation Calculator.