In July 1992, the superannuation guarantee (SG) of 3% was introduced by the Keating Labor Government. Between 1992 and 2002 the SG increased from 3% to 9%. The SG is a compulsory employer contribution made into an employee’s super account.

97% of employees are eligible to receive the superannuation guarantee. The main groups of employees who are NOT covered are:

• Paid less than $450 per month
• Aged 70 years or above
• Aged under 18 years and working less than 30 hours per week
• Employed for domestic or private work for 30 hours or less per week

Superannuation is money saved during a working life to provide an income in retirement. It is part of the Australia’s Three Pillar System for retirement savings that includes:

• Compulsory superannuation
• Voluntary savings
• Government pension

Most workers’ super is paid into “accumulation style” funds. These can be compared to a bank account. The amount of future benefit in an accumulation fund cannot be predicted. It depends on many factors including investment performance and the fees and taxes that are deducted.