Basically this is savings for retirement. The introduction of compulsory employer contributions to super in the early 1990’s has meant that retirees will be more and more required to fund their own retirement and not have access to the Aged Pension.

Because of significant tax benefits associated with super, there are strict controls on the amounts that can be contributed and more particularly on when super can be accessed.

Tax benefits include a maximum 15% tax on earnings (as compared with the 46.5% top tax rate), and lower or nil tax on the earnings of the fund as well as nil tax on withdrawals for members over the age of 60 years.

Super cannot be accessed until you are over the age of 55 and retired – note that the age limit is higher if you were born after 1960.