Super and your first job

So you got your first job! Congrats. Earning your own money is a huge milestone toward living life on your own terms.

And whether it's your first casual job, your first full-time job, or your first job in Australia, it's a big deal.

What is superannuation?

Superannuation is a retirement savings account. Most working Aussies have one. You can generally only access money from your super account when you're aged in your sixties, which means you have until then to try to grow your super balance as high as you can, assuming you want a comfortable retirement.

When you start earning money from employment in Australia, you get paid superannuation. At the beginning of your career, when it comes to super, there are generally four things you need to worry about:

• Picking a super fund you're happy with
• Making sure your employer has the right details
• Making sure your super's being paid correctly
• Taking advantage of any opportunities to help boost your balance or get a head start financially

How does superannuation work?

Superannuation works by directing 12% of your income into a special account, known as a super account. You choose your super fund and then your employer directs your super there on your behalf. You can't access it until you reach what's called your 'preservation age'.

Who pays superannuation?

Your superannuation is your money that you earn, but both you and your employer can make super contributions:

Employer contributions: Your employer must direct 12% of your earnings to your super account. This is called the Super Guarantee and it's compulsory. They can get in trouble for not doing it properly.

Voluntary contributions: You're welcome to add your own extra contributions, and there may be some tax or other benefits for doing so. Some people pay extra super contributions to withdraw to help buy their first house. This is generally the only time you can access your super before you retire, unless you qualify for early access.

Who gets paid superannuation?

If you're over the age of 18, your employer must pay 12% of your earnings into your super fund. (If you're under the age of 18, you must work over 30 hours per week to qualify).

Generally, the only employers who don't have to pay super are those who employ themselves. So if you have a side gig, you're a sole trader, a freelancer, or have a hobby business, you don't have to contribute to your super (though we think it's a good idea).

Do casual workers get paid superannuation?

When you turn 18, you can drink, vote, and start earning super, whether you're doing casual, part-time, full-time, or contract work. The only time it's not compulsory for you to be paid super from your work is if you work for yourself.

Before you turn 18, you'll be paid super so long as you work more than 30 hours in a week.

When does super get paid?

You can see your super contributions on your payslip. Your employer must pay it into your super account at least quarterly, until 1 July 2026 when they must pay it each time you get paid.

Once you've given your employer the correct information about your super fund, you shouldn't have to do anything else to get paid super.

How do I know what my super fund is?

If you've had a job before, you can find any existing super funds by logging onto the ATO website with your details.

You can also check your payslip if you've been employed at your current employer for more than 14 days — your employer should list it there.

Who chooses my super?

Choosing your super fund is up to you. You can choose and change super funds at any time, so you can make sure your super keeps working for you.

When you start a new job, if you don't share your super details with your employer, they may direct your super payments into what's known as a default super fund. Default super funds must meet some minimum requirements to make sure your money is kept safe even if you don't engage with it.

What's the best super fund for young people?

It can be tricky to choose a super fund when there are so many options out there. Often, it feels like an overwhelming decision. Sometimes people ask their friends or family for recommendations — but it's important to understand and choose what's right for you, which depends on your personal circumstances.

Investment options

One common strategy younger people are often recommended is to invest their super in a 'high-growth' fund. High-growth funds tend to have a higher proportion of shares, as opposed to lower growth funds that may have more property or cash, for example.

2017 research from Monash Business School found that this 'high risk, high return' theory tended to pay off for younger investors.

The idea is that, because you're young, you have more time to tolerate the high-risk that comes with these investments. You can't withdraw it anyway, so you might as well give it the best chance to grow, even if you have to go through some volatile years in the process.

Fees

Because you hold super for such a long time (decades), the decisions you make now can have a big impact.

In general, when you have a low balance, fees can have an outsized impact on long-term growth. That's why if your balance is lower than $6,000, the annual fees you pay are capped at 3% and any excess you pay gets refunded back to you.

If the fees you're paying seem high, think about whether the performance and experience you receive makes up for it. If they seem low, make sure it's not at the expense of your performance.

Insurance

There's also insurance: if your super fund offers insurance and you opt in, it can help pay if you experience illness or disability, or pass away. However, if you're a young person without dependents, you may not feel like you need to pay for the life insurance your fund may offer.

The great thing about super is that you don't get locked in — so if you're not happy with your current fund, you can switch to another. You also don't have to understand every single thing about it to get started — and you can often learn as you go.

How do I see how much super I have?

You can usually see how much super you have by logging into your super fund's app. Spaceship Super customers can see their super alongside their other share investments. If you've lost track of your super you can also visit the ATO website, which generally keeps a record of it.

What if my super isn't being paid correctly?

It's really important to make sure your super is getting paid correctly.

If you don't think you're being paid properly, and you've already spoken to your employer about it, you can take steps to report it to the ATO, who can force them to pay your super plus interest and admin fees.

What else should I know?

If you're new to Australia or starting out with your career, you might be eligible to different programs that include superannuation.

How can I sign up with Spaceship Super?

It's easy to sign up with Spaceship Super. You can sign up in just five minutes, and when you're in, see how we help you save for your first home, and watch your super take shape alongside your other investments. Launch the Spaceship app.