Superannuation is something most people don’t think about until they’re 40. By then, they’ve already missed years of compounding growth. Understanding it in your first job puts you well ahead.
Here’s what it actually is and what you need to know.
The basics
Superannuation, or super, is a mandatory savings system for Australian workers. Your employer is legally required to pay an extra percentage of your wages into a superannuation account in your name. That money sits there, gets invested, and grows over your working life until you can access it at retirement age (currently 60 for most people).
As of 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings. So if you earn $1,000 in a pay period, your employer must also pay $120 into your super fund on top of that. It doesn’t come out of your wages, it’s on top.
Do you get super as a casual worker?
Yes, if you earn $450 or more in a calendar month from one employer, they must pay you super. Some employers don’t realise this (or hope you don’t). If you think you should be receiving super and you’re not, you can report it to the ATO.
Which super fund do you choose?
Most employers will ask you to nominate a super fund when you start. If you don’t choose one, they’ll put you in their default fund. That’s fine to start with, but it’s worth spending ten minutes picking a fund with low fees and a solid investment track record.
A few well-known funds for young workers in Australia: Australian Retirement Trust, Hostplus, REST, and UniSuper. Check their fees and long-term performance before choosing. The ATO’s YourSuper comparison tool (ato.gov.au) is a good place to start.
Don’t open a new fund for every job. If you already have a super account from a previous job, give that fund’s details to your new employer. Multiple super accounts mean multiple sets of fees eating into your balance.
Why it matters now, not later
Super is one of the most powerful financial tools available to young Australians because of compound growth. Money invested at 18 has decades to grow. Even small amounts add up significantly over time.
The person who pays attention to their super at 18 will retire with substantially more than the person who first thinks about it at 45. That’s not an exaggeration, the numbers are significant.
What to do right now
When you start your first job, get the following sorted:
- Find out if you have an existing super account (check myGov)
- If you don’t, choose a fund with low fees
- Give your super fund details to your employer in the first week
- Check your payslips periodically to make sure super is actually being paid
That’s it. Super isn’t complicated, it just requires a little attention at the start.
Getting your first job sorted is the first step. RooKi helps you find one that actually fits, matched to your strengths, your location and what you’re good at.