After a lifetime of work we all deserve a comfortable retirement. For most of us, that’s where superannuation comes in.

Superannuation, or “super”, is a right for all people who work and reside in Australia. It’s money paid straight into your super fund by your employer.

Then, when you retire, the balance of your super account can be used to provide an income stream.

HOW UNIONS WON YOUR SUPER

Unions have always insisted people have a right to decent and fulfilling lives outside of work, and part of this fight was for universal superannuation.

Up until the 1980s, fewer than one in four women and blue-collar workers had a super fund. Super was generally a privilege enjoyed by high income earners, public servants or white-collar workers, with most retirees forced to retire on a meagre pension.

That changed in 1983, through an agreement between the new Hawke-Keating Labor Government and Australia’s trade unions.

In the Prices and Incomes Accord, unions agreed to direct a 3% increase in pay to a new superannuation system, which would be matched by the employer.

In 1986, the Arbitration Commission agree that 3% super could be included in awards, but refused to arbitrate, so agreements still needed to be negotiated between employers and unions.

Finally, in 1992, the Keating Labor Government introduced a compulsory employer contribution scheme as a part of a wider retirement reform package.

These employer contributions were branded Superannuation Guarantee (SG) contributions.

AM I ENTITLED TO SUPER?

In Australia, if you work full-time, part-time, or as a casual employee, you are entitled to superannuation contributions, as long as you earn more than the minimum threshold amount of $450 per month. This threshold will be scrapped from July 1, 2022.

Employees of any age may be entitled to superannuation payments, but if you are under 18, you must work over 30 hours per week.

To find out more, contact your AWU delegate, or join the union!

HOW MUCH SUPER SHOULD I GET?

Superannuation contributions are not taken out of your wages, but are paid on top of your salary.

By law, your employer must pay a minimum 10% SG contribution (of your ordinary-time earnings) into your nominated or default super fund. This will increase in stages to 12% by July 2025.

Some awards and agreements have better than the minimum rights to superannuation, but otherwise you should be paid at least 10%.

You must at a minimum be getting SG contributions every 3 months, but most employers will pay your super every pay cycle.

Not getting your super, or not sure? Contact your AWU delegate, or join the union!

HOW DO I NOMINATE A FUND?

When you start a job, your new employer will usually give you a superannuation fund nomination form to fill out. This allows you to tell him or her where your super contributions should go.

You might nominate your existing fund – maybe from your last job.

Or, if it’s your first job, or you want to choose a new fund, you may decide to do some research, compare funds and decide which one you want your super contributions paid into.

If you don’t have a preferred fund or don’t nominate one, an account will be created on your behalf with your employer’s chosen default super fund.

Need help? Contact your AWU delegate, or join the union!

PICKING A FUND

Only you can choose which fund will be best for you, but there are significant differences between funds in terms of returns and fees.

Industry funds are not-for-profit funds run only to benefit members, not shareholders. They usually have low fees, deliver strong, long-term returns, and outperform retail funds (such as those run by the big banks).

More than five million Australian workers are members of industry funds, which manage hundreds of billions of dollars of workers’ money.

Importantly, members have a say in how the funds are run, through employee representatives on the boards of industry funds.

Industry funds also invest in long-term assets such as roads, airports, renewable energy and other infrastructure, delivering long-term returns for members plus creating Aussie jobs and strengthening the economy.

Want to know more? Contact your AWU delegate, or join the union!

CAN I CONTRIBUTE TO MY FUND?

You can make extra contributions to your superannuation on top of your employer’s SG contribution.

This can include diverting some of your pay into superannuation under so-called “salary sacrifice” arrangements.

As well as topping up your super ahead of your retirement, voluntary contributions can also provide tax benefits, subject to limits.

HOW CAN I TELL IF MY SUPER IS BEING PAID?

Everyone should have a super fund, and every fund should give you an annual statement.

The annual statement should show you how much your employer has paid on your behalf during the past financial year.

Information about your superannuation should also be included on your pay slip and match the information from your fund.

The payment of compulsory superannuation contributions is also enforced by the Australian Taxation Office.

If you are not being paid correctly, the AWU can help you to lodge a complaint with the ATO.

Just contact your AWU delegate, or join the union!