Superannuation is Australia's mandatory retirement savings system — and one of the most generous in the world. With the Super Guarantee at 11.5% in 2026 (rising to 12% by July 2025), most Australian employees are already building substantial retirement wealth. But most aren't maximising it.
How super works
Your employer must contribute 11.5% of your ordinary time earnings into your super fund. This is on top of your salary — not deducted from it. On a $80,000 salary, your employer pays $9,200/year into super that you don't see in your take-home pay.
The two types of extra contributions
| Type | Cap (2026) | Tax treatment | Best for |
|---|---|---|---|
| Concessional (pre-tax) | $30,000/year | Taxed at 15% in fund (vs marginal rate) | Anyone paying 32.5%+ income tax |
| Non-concessional (after-tax) | $110,000/year | No further tax in fund | Higher earners who've used concessional cap |
The salary sacrifice strategy
If you're on $80,000 (32.5% tax bracket), salary sacrificing $10,000 into super means:
- That $10,000 is taxed at 15% in super (you keep $8,500)
- Instead of paying 32.5% income tax (you'd keep $6,750)
- Saving: $1,750 in tax per year — without any impact on your lifestyle
How to check and consolidate your super
Many Australians have multiple super accounts from different jobs, each charging fees. Consolidating saves on fees that compound into significant lost wealth over decades.
- Log into myGov and link your ATO account
- Under "Super", see all your accounts
- Compare fees and investment options
- Roll older accounts into your preferred fund
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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