Superannuation Australia 2026
Your complete guide to super contribution rates, fund types, when you can access your money, and how superannuation affects your Centrelink Age Pension entitlements.
Superannuation Guarantee Rate — Schedule
The SG rate has been rising annually since 2021. It reaches its final legislated rate of 12% on 1 July 2026 — no further increases are currently scheduled.
| Financial Year | SG Rate | Status |
|---|---|---|
| 2021-22 | 10.0% | Past |
| 2022-23 | 10.5% | Past |
| 2023-24 | 11.0% | Past |
| 2024-25 | 11.5% | Past |
| 2025-26 | 11.5% | Current |
| 2026-27 | 12.0% | From 1 Jul 2026 — Final rate |
When Can You Access Your Super?
Super is locked away until you meet a condition of release. The most common is reaching your preservation age (60) and retiring, or turning 65.
Preservation age + retired
Access all super as lump sum or income stream if you have reached 60 and permanently retired. Tax-free for most people.
Turned 65 (any work status)
Access super as lump sum or income stream regardless of whether you are still working. No retirement condition needed.
Transition to Retirement (TTR)
Draw up to 10% of your super per year as a TTR pension while still working. Useful for reducing hours gradually.
Terminal illness
Tax-free access if you have a terminal illness with life expectancy under 24 months.
Severe financial hardship
Up to $10,000 per 12 months if you have been on Centrelink for 26+ continuous weeks and cannot meet basic living expenses.
Compassionate grounds
ATO may approve access for unpaid medical expenses, palliative care, or to prevent home foreclosure. Strictly assessed.
Types of Super Funds
Industry Funds
Run by unions and employer groups. Not-for-profit - all profits go back to members. Historically strong long-term performance. Open to all workers.
Examples: AustralianSuper, Australian Retirement Trust, HESTA, Cbus
Best for: Most workers - especially those who want low fees and strong long-term returns
Retail Funds
Run by financial institutions. For-profit. Generally higher fees than industry funds. Wide investment options and financial advice available.
Examples: AMP, Colonial First State, MLC, BT
Best for: Workers who want extensive investment choice or financial advice through their fund
Self-Managed Super Funds (SMSF)
You are the trustee and manage your own investments. Maximum flexibility but requires significant time, knowledge and compliance obligations.
Examples: Up to 6 members, ATO-regulated
Best for: Workers with $250,000+ in super who want direct control over investments (including property)
Public Sector Funds
For government employees. Many are defined benefit funds - your retirement income is defined by a formula. Closed to new members in most cases.
Examples: CSS, PSS (Commonwealth), State super funds
Best for: Government employees eligible for these funds
⚠️ How Super Affects Your Age Pension
Once you reach Age Pension age (67), your superannuation balance is counted under the assets test. How it is treated under the income test depends on whether you have started drawing from it.
Super in accumulation phase
Asset only — NOT income
If you have not started drawing from your super, it counts as an asset but Centrelink does not assess it as income.
Account-based pension (retirement)
Asset + deeming applies
Once you convert to a retirement pension, the balance is an asset AND Centrelink deems it to produce income at 0.25% (first $62,600) then 2.25% above.
Lump sum withdrawal + spending
May reduce assessable assets
Withdrawing a lump sum from super and spending it on eligible items reduces your assessable assets — potentially increasing your Age Pension.
Contributions Caps 2025–26
| Type | Annual cap | Tax treatment | What is included |
|---|---|---|---|
| Concessional (before-tax) | $30,000 | 15% in fund (30% if income >$250k) | Employer SG contributions, salary sacrifice, personal deductible contributions |
| Non-concessional (after-tax) | $120,000 | Not taxed again in fund | Personal contributions from after-tax income (no deduction claimed) |
| Bring-forward (3 years) | $360,000 | Not taxed again in fund | Bring forward 3 years of non-concessional cap if total super balance <$1.66m |
| Downsizer contribution | $300,000 per person | Not taxed again in fund | Over 55s selling their home — up to $300k each from proceeds, outside normal caps |