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2 Rules About Superannuation You Should Know

Updated: Jul 26, 2021

There are many places in the world that one can spend their retirement in, but no country is as acclaimed for the quality of post-work life as Australia. With a world-class healthcare system, elderly-friendly spots, unhampered natural sights, and room for limitless possibilities, the Land Down Under isn’t only a hotspot for the younger generation. Over the years, millions of retirees in Australia have enjoyed vital benefits and improvements in their quality of life—which is excellent news for any forward-thinking professional.

If you’re someone that likes to plan for the future and finds peace in long-term security, then you’ve set your sights on living every day of the rest of your life in Australia. There are all sorts of tools you can use to start planning, and there’s no better time to map out your retirement than now. When it comes to finances, there are many different available measures and long-term plans that will help you prepare for your retirement. While each option comes with its set of advantages and opportunities to look forward to, one key tool that will make post-work life easier for you is superannuation.

How Does Superannuation Work in Australia?

Today, superannuations—also known as a “super”—stand as the most effective tools that Australians can use to save up for retirement. However, most people don’t know enough to make the most out of them. Superannuations ensure that a portion of your income is set aside for you to access upon retirement. Much like a retirement fund (such as America’s 401(k)), superannuation is made available for most people who earn a wage or salary.

Over the years, strict superannuation rules and mandatory fund contributions have put Australians’ retirement savings ahead of people in many other countries. However, these same additional measures have resulted in complications that holders need to watch out for.

Basic Superannuation Rules You Need to Watch Out For

When it comes to maximising the opportunities that superannuation provides, there are various rules that you’ll need to watch out for once you start pouring in contributions. To help you map out the processes set by the APRA and the ATO, here are the various rules that you need to follow:

1. Employer Payment Compliance

As of July 2021, every employer has an obligation to pay a minimum of 10 per cent of their employee’s total earnings into superannuation. This standard is known as the Super Guarantee (SG), which is maintained according to a separate set of regulations. Currently, the minimum expected rates for SGs are set to rise by 0.5 per cent annually until it reaches a target of 12 per cent set by the APRA and ATO. It is also worth noting that the current 10 per cent requirement is calculated from your normal salary plus all allowances, commissions, and leave loading.

2. Qualifying Criteria

In terms of qualifications, the requirements set by the APRA and ATO for interested applicants and plan holders are rather straightforward. To be considered as eligible or entitled for employer superannuation contributions, you must qualify under the following criteria:

  • You must be under 70 years of age

  • You must be working on a full-time-, part-time, or casual basis

  • You must be working more than 30 hours a week (if you are under the age of 18)

Beyond the rules mentioned above, making the most out of your superannuation is best done with the help of a financial expert. To help ensure that your payments are made accordingly for the best returns upon your retirement, let an expert like Swell Financial Planning Handle your needs ASAP!


If you’re keen on planning your future to ensure that you have the best quality of life in your older years, then you must start using superannuations to your advantage. Once you start being mindful of the key rules mentioned above, you’ll be able to prevent any unwanted issues from taking place and compromising your efforts!

If you're looking for a financial planner in Queensland to assist with your superannuation, we're here to help. Get in touch with us today, and let us help you achieve your dreams!


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