There are lots of rules when it comes to our super system. But not every rule applies to you at every age, so it’s worth figuring out which ones have an impact for your age group.
The rules at different ages govern how much and when you can contribute to super, when you can get your hands on your savings and how much tax you will pay. These rules are designed to ensure super is used for its intended purpose – to provide retirement income – in exchange for the generous tax benefits on offer.
To make things a bit easier to understand, here’s SuperGuide’s simple explainer of the rules applying to you if you’re just starting out in the super system.
Super rules if you’re in your teens
The super system is designed to help you save money for your retirement over your entire working life. It holds money contributed by both you and your employer and will help supplement your income during your retirement years.
The rules that apply to your super when you’re aged under 18 years are split between those covering:
- When money goes into your super account (contributions)
- When money comes out (withdrawing).
1. Contributing to your super
Superannuation Guarantee (SG)
If you are aged under 18 and are working more than 30 hours a week, your employer must pay SG contributions on your behalf into your super account. The SG contribution rate is currently legislated to increase progressively to 12% in July 2025.
If you’re 18 or over, your employer must pay SG regardless of the hours you work.
When you meet eligibility criteria, you are eligible to receive SG contributions (in addition to your wages), whether you are classed as working full time, part time or as a casual, and if you are a temporary resident.
If you don’t meet the eligibility conditions, your employer is not required to make SG contributions for you. Your employer may still choose to make super contributions on your behalf even though they are not legally bound to do so.
If you work in a private or domestic capacity (for example, as a paid nanny), you need to work more than 30 hours per week to qualify for employer-paid SG contributions, even if you’re over 18.
Super fund stapling
If you start a new job you must tell your employer which super fund you would like them to pay your regular SG contributions into.
If you don’t advise your employer of your choice of super fund, they are required to check with the ATO to see if you have any existing super fund accounts into which they can make their SG contributions. This existing super fund account is called your stapled account, as it is linked to you and follows you as you change jobs.
Stapling of a super fund is designed to stop new super accounts being opened every time you change employer, so you don’t end up paying multiple fees. You are free to change your stapled account at any time by providing your employer with the details of your new super fund.
Contributions caps
There are annual limits or caps on the amount of money you and your employer can contribute into your super account. If you’re aged under 18, you are subject to the same caps or limits on your super contributions as an adult.
In 2023–24, the annual general concessional (before-tax) contributions cap is $30,000 for everyone, regardless of their age.
Some people may have a higher annual concessional contributions cap for a particular year. If you qualify, you can carry-forward concessional contributions to contribute more than the standard cap. Carry-forward allows you to use any of your unused annual concessional contributions cap from the prior five financial years to make a larger concessional contribution.
The annual general non-concessional (after-tax) contributions cap for 2024–25 is $120,000. If your total super balance was higher than $1.9 million on 30 June 2024, your non-concessional cap for 2024–25 is zero.
If you receive an inheritance or a large sum of money you would like to contribute to your super account, you may also be eligible to contribute up to three years of your annual non-concessional cap in a single year. Using the bring-forward rule, you may be able to contribute up to $360,000 ($120,000 x 3 years) in a single year.
Personal (or voluntary) tax-deductible contributions
If you are under 18 and would like to make a personal contribution into your super account and claim a tax deduction for it, a special rule applies. To be eligible to claim a tax deduction if you are under 18 at the end of the financial year in which you plan to claim the deduction, you must have earned some income as an employee or as a business operator during that particular financial year.
Once you’re 18 or more, this rule no longer applies.
Contributions made by someone other than an employer
If you are aged under 18 and a parent makes contributions into your super account, these contributions will count towards your annual non-concessional (after-tax) contributions cap.
Contributions made by a person other than you, your spouse, or your employer are counted as concessional (pre-tax) contributions if they are paid after you turn 18.
However, most super funds don’t accept contributions from anyone other than you, your employer, or your spouse. If a parent or another individual wants to contribute for you, it is more common for them to give the money to you so you can put it into super yourself.
First Home Super Saver Scheme (FHSSS)
Buying a home is a goal for many young people so the government’s FHSSS could be a useful way to save part of your deposit inside the lower-taxed environment of the super system.
Your FHSSS contributions are counted towards your concessional or non-concessional super contribution caps. You are eligible to apply to release up to $50,000 of contributions plus their deemed earnings from your super account under the FHSSS.
Self-managed super funds (SMSFs)
Although it’s never too early to start thinking about your retirement, you can’t be a trustee and run your own super fund if you are aged under 18.
You can, however, be a member of an SMSF if you are under 18 – provided you are represented by a trustee who agrees to act on your behalf (such as a parent or guardian).
Superannuation death benefits
If you are aged under 18, you get special treatment if you receive a death benefit paid from a super fund on the death of a parent.
The special rules applying in this situation mean you are automatically treated as a dependant for super and tax purposes, so you will receive the super death benefit without needing to pay any tax on it.
2. Withdrawing your super
Getting your money
You generally can’t access your super until you turn 60. This is the ‘preservation age’ for anyone born on or after 1 July 1964.
In special circumstances you may be able to get early access to your super savings before you turn 60, but the rules permitting this are strict.
