What super is
Super is Australia's retirement savings system. Your employer must pay at least 12% of your qualifying earnings into your super fund.[3] This is the super guarantee. You can add more yourself, either before tax or after tax.
The numbers for 2026–27
These figures apply to the financial year 1 July 2026 – 30 June 2027.
| Super | Investing outside super | |
|---|---|---|
| Tax on contributions | 15% in the fund on before-tax (concessional) contributions. After-tax (non-concessional) contributions have already been taxed | None – you invest from pay that has already been taxed |
| Tax on earnings | Up to 15% in an accumulation account | Your marginal tax rate. 50% discount on capital gains after 12 months |
| Access | At 65, or from preservation age (60) if you retire | Any time |
| Yearly limit | $32,500 before tax, $130,000 after tax | None |
Before-tax contributions include what your employer pays and anything you salary sacrifice. The fund takes 15% contributions tax, and you may pay extra tax if you go over the yearly limit of $32,500.[3] After-tax contributions can be up to $130,000 each financial year.[4]
Investment earnings in an accumulation account are taxed at up to 15%. This includes interest, dividends and other investment income.[4]
When you can get the money
You can withdraw super when you turn 65, even if you are still working, or when you reach your preservation age and retire.[1] Preservation age is 60 for anyone born on or after 1 July 1964.[1] Earlier access is only possible in limited situations, such as medical, compassionate, hardship and incapacity grounds.[1]
Investing outside super
Outside super you invest money that has already been taxed. Investment income, such as fund distributions and dividends, is generally added to your other assessable income, and the tax depends on your marginal tax rate.[5] If you sell at a profit, you pay tax on the net capital gain at your marginal income tax rate.[2] Australian residents who have owned the asset for 12 months or more get a 50% discount, so only half the net gain is taxed.[2]
Example: you salary sacrifice $500 a month, which is $6,000 a year. The fund takes 15%, or $900, and $5,100 is invested. Outside super, a $10,000 gain on units held for more than 12 months is halved, so $5,000 is added to your taxable income.
What it means for an index saver
- Super usually wins on tax. 15% is below the marginal rate most people pay on their income.[3]
- Outside super wins on access. Use it for money you may need before 60.
- The same kind of investment works in both. Many super funds offer indexed options, and outside super you can hold a broad index ETF.
- Fees matter in both. Compare them on the fund fees page.
Common questions
Can I use contribution room I did not use in earlier years?
You may be able to carry forward unused concessional contributions from previous years if your super balance was under $500,000 at 30 June of the previous financial year.
Do I pay tax when I sell an ETF outside super?
Yes, if you make a net capital gain. It is taxed at your marginal income tax rate. If you owned the units for 12 months or more, the 50% discount means only half the gain is taxed. A net capital loss cannot be deducted from other income, but it can be carried forward to reduce future gains.
Sources & further reading
We cite independent authorities so you can verify everything yourself. Last reviewed 15 Sept 2026.