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Beginner · Lesson 3 of 4

Superannuation basics for investors

7 minute read · By Krishna Avadhani, Vestora Academy · Updated 18 October 2026

Super is a tax-advantaged retirement account. Employers pay the Superannuation Guarantee (12% of ordinary earnings from 1 July 2025). Earnings in accumulation phase are generally taxed at up to 15% (and capital gains effectively 10% after the one-third discount); in retirement pension phase, earnings are generally tax free within limits.

You can add concessional (before-tax) contributions up to an annual cap, and non-concessional (after-tax) contributions within their own cap. Caps and rules change, so check the ATO.

Choose your fund's investment option thoughtfully: a young member in a conservative option may give up a large amount of retirement wealth. Compare fees: the ATO's YourSuper comparison tool ranks MySuper products.

Key takeaways

  • Super Guarantee is 12% of ordinary earnings (from July 2025).
  • Low tax inside super; often tax free in pension phase.
  • Investment option and fees matter enormously over decades.

Check your understanding

1. Maximum tax rate on earnings in accumulation phase is generally...

  • 0%
  • 15%
  • 30%
  • 45%
Show the answer

15%. Concessional 15% rate.

2. Which ATO tool compares MySuper products?

  • MyGov
  • YourSuper comparison tool
  • TFN lookup
  • Business portal
Show the answer

YourSuper comparison tool. It ranks funds by fees and performance.

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General education only, not financial advice. Examples are illustrations. Rules, tax settings and products change; check official sources.