How to Set Up Superannuation in Australia 2025 (Top Super)

Superannuation (super) is the foundation of Australia’s retirement savings system. Getting your super set up right and choosing the right fund can make a big difference to your financial future. This article will walk you through how to get super and some of the top super funds in Australia.

What is Super

Super benefits:

• Tax Advantages: Super contributions and investment earnings are taxed at 15%, much lower than most income tax rates.

• Long-Term Compounding: Small regular contributions can add up over time. For example, a 25 year old earning $60,000 could have over $500,000 by retirement age with consistent contributions and investment growth.

• Customised Investments: Super funds offer different investment options, growth (higher risk and return) or conservative (lower risk and return) so you can match your super to your personal financial goals.

How to Get Super

Step 1: Choose a Super Fund

Choosing the right super fund is key to getting the most out of your retirement savings. When choosing a fund consider:

• Fees: High fees can eat into your savings. For example, a 0.5% difference in fees could be tens of thousands of dollars over a lifetime.

• Performance: Look at long term performance not short term returns. Funds like AustralianSuper’s Balanced option have returned 8.19% over 10 years.

• Investment Options: Funds offer different strategies, socially responsible investments to high growth options.

• Insurance: Many funds have default life, disability and income protection insurance. Check the levels of cover to make sure they match your needs.

Step 2: Apply

Opening a super account is easy. Most funds have online applications that require personal details and investment preferences. Here are two examples:

• AustralianSuper: Takes minutes to join. Members can choose from Balanced, Growth or High Growth options. The app allows easy tracking and management.

• Australian Retirement Trust: Formed from the merger of Sunsuper and QSuper, this fund has a simple sign up process and advanced online tools to help you optimise your investments.

Step 3: Tell Your Employer

Once you have set up your super account, tell your employer to direct your contributions to your chosen fund. Use the Standard Choice Form from the ATO. Give your employer your fund’s USI (Unique Superannuation Identifier) and they will process it correctly.

Step 4: Consolidate Your Existing Super

To get the most out of your savings consider consolidating multiple super accounts. According to the ATO there are over 6 million Australians with multiple super accounts, costing millions in duplicate fees each year. Most funds offer consolidation services but check for insurance policies or other benefits that could be lost before merging accounts.

Top Super Funds in Australia

AustralianSuper

AustralianSuper is Australia’s largest super fund, known for its low fees, many investment options and long term performance. With a focus on helping members achieve financial freedom, AustralianSuper offers solutions for every stage of life.

As a super fund you can trust, AustralianSuper gives members access to affordable and high performing retirement strategies. Its platform is for everyone, from all industries, to have peace of mind while growing their super for the future.

Lower Fees for Better Returns

AustralianSuper’s focus on low cost investments means members get to keep more of their returns, resulting in better outcomes over time. MySuper has low fees and strong performance for members who want steady returns.

By reducing admin and investment costs AustralianSuper helps members achieve their retirement goals with fewer obstacles. This is what it means to deliver long term financial security and maximum savings.

Many Investment Options

AustralianSuper has many investment options to suit different risk profiles and retirement goals. From conservative to growth strategies, members can choose from multiple asset classes and funds to match their super to their financial dreams.

The ability to choose and change investments gives members more control over their retirement savings. Whether it’s stability or higher growth, AustralianSuper has the resources to cater for different needs and goals.

Long Term Performance

AustralianSuper has strong returns backed by many investment strategies. Its performance across asset classes means members’ super is protected from market ups and downs, delivering long term growth.

Expertly managed portfolios with diversification in mind, AustralianSuper aims to create wealth. The fund’s balanced approach reduces risk and maximises returns so members have strong growth over the long term.

Sustainability

AustralianSuper incorporates environmental, social and governance (ESG) considerations into its investment strategies so members can be sure their investments are responsible and sustainable.

By investing in renewable energy and green infrastructure AustralianSuper is making a positive impact. Its ESG approach links members’ financial goals to values around sustainability so they can have ethical returns and long term progress.

Member Support

AustralianSuper has many tools and services including financial advice and member calculators to help members navigate their super journey. The fund has insurance in superannuation so members have extra peace of mind.

Through its member support network AustralianSuper helps members make informed decisions about their super whether it’s for long term growth, protection against the unexpected or planning for retirement.

Life Stages

AustralianSuper is with members every step of the way, from accumulation to pension. It has tailored retirement solutions to help members get the most out of their savings and feel confident about retirement.

With many options AustralianSuper caters for different financial goals whether just starting out or nearing retirement. Members have the resources and advice to achieve short and long term retirement goals.

Australian Retirement Trust

Australian Retirement Trust (ART) is a Australian super fund with low fees, many investment strategies and strong performance. It has member support to help you secure your future.

Open to all industries ART has services to help members achieve their individual retirement goals. With a focus on long term growth and affordability ART helps members plan for a secure retirement.

Low Cost for Maximum Returns

ART has low cost options so members can keep more of their returns and grow their wealth. With options like the Indexed Balanced option members get steady performance at low fees.

By reducing unnecessary costs ART helps members get closer to their retirement goals, focusing on value over the long term. This low fee approach is all about members’ financial well being and long term growth.

Investment Options

ART has many investment options to suit different risk profiles and retirement goals. From conservative to high growth investments members can choose the strategy that suits their time frame and goals.

This flexibility means each member can manage and grow their super in a way that suits them. Whether stability or higher returns ART has options to match different financial needs and future plans.

Long Term Growth

ART has long term performance, especially through the Balanced option which has strong performance. The fund’s asset allocation and risk management discipline means members’ investments are protected from market ups and downs.

By being diversified ART has a strong track record. Its performance over the years shows it can adapt to changing markets and deliver stable and strong growth for members’ retirement savings.

Investing in a Sustainable Future

ART incorporates environmental, social and governance (ESG) factors into its investments so members’ values are reflected. This approach combines profit with long term positive outcomes for society so members get responsible returns and growth.

ART invests in renewable energy and socially responsible projects, sustainability is key. These responsible investments get ethical returns and contribute to global progress, addressing issues like climate change and social justice for long term impact.

Full Service for Every Member

ART has tools to support members throughout their retirement journey. Calculators, online resources and personalised advice to help with investment decisions and super management.

The fund also has superannuation insurance so members can feel secure with extra protection. ART helps members make the best financial decisions by giving them clear guidance and planning tools.

Life Stage Services

ART is with members every step of the way from accumulation to retirement and beyond. Its pension options and advisory services are tailored to provide stability and certainty.

Whether you’re just starting out or retiring soon ART has the resources and strategies to help members achieve their financial goals. The fund’s holistic approach means all members have the tools to achieve long term financial security.

Aware Super

Aware Super is a well known Australian super fund with low fees, long term performance and many investment options. It services individuals across many industries, to provide financial security for all members.

Aware Super has flexible financial solutions for its diverse membership. Its focus on affordability and performance helps members build financial security, so they can feel confident and secure in retirement.

More Value for Less Fees

Aware Super delivers value through low cost super products so members can keep more of their returns. The Balanced option is the most popular with low fees and long term strong performance.

By keeping fees low Aware Super means more of the investment returns are retained so members can achieve their retirement goals. This focus on affordability is part of Aware Super’s overall goal to help members long term financial security.

Options for Different Goals

Aware Super has many investment options to suit different risk profiles and financial goals. From conservative to growth focused strategies members can tailor their investments to their retirement plans.

This flexibility means members can align their super investments to their long term financial goals and have control over their retirement savings. Aware Super is with members every step of the way from accumulation to retirement and beyond to help them manage and grow their savings.

Long Term Investment Performance

Aware Super has long term performance, a strategic and diversified portfolio and a focus on risk management means consistent and reliable outcomes for members to achieve their long term goals.

Long Term Focus

Aware Super incorporates environmental, social and governance (ESG) considerations into its investment decisions to show its commitment to long term growth. Its strategies support socially responsible investing so members get strong financial performance.

Investing in clean energy, ethical governance and socially responsible companies Aware Super is contributing to global sustainability. This approach maximises long term returns for members while the fund remains responsible to environmental and social issues.

All Inclusive for Members

Aware Super has all the tools online, calculators and professional advice. Insurance options within super accounts means extra protection for members at all stages of life.

Services for Every Life Stage

Aware Super is with members every stage of their retirement journey from accumulation to retirement. With pension options and advice services members can make informed decisions and achieve their goals.

Whether starting out or retiring soon Aware Super has the right support for long term financial security. Focusing on affordability, performance and sustainability the fund has the tools and guidance to help members every step of the way.

HESTA

HESTA is a well known Australian super fund serving the healthcare, community services and social impact sectors. It has a long term growth and value reputation.

Open to all industries HESTA has services for workers in accumulation and retirement stages. Its focus on affordability and responsible growth means members can achieve their goals and have security in retirement.

Low Cost, Good Outcomes

HESTA has a low fee structure to get the best returns for its members so better retirement outcomes. The Socially Responsible Investment option which invests ethically is a popular choice within the HESTA fund.

By reducing excess fees HESTA helps members grow their super so they can save and maximise long term financial security. This approach puts value and efficiency as the foundation of wealth accumulation for retirement.

Many Investment Options

HESTA has many investment strategies to suit different risk levels and financial goals. From low risk for those near retirement to growth focused for younger members it has options for everyone.

The many options means members can shape their super to their personal aspirations. Whether stability or growth HESTA has options that can adapt to changing circumstances and preferences over time.

Long Term Returns

HESTA has strong returns through many investment options, resilient in different market conditions. Its disciplined long term approach to risk management and strategic asset allocation means stable growth super balances for members.

Ethical and Responsible Growth

HESTA puts sustainability first by incorporating environmental, social and governance (ESG) considerations into its investment decisions. This means members’ funds support industries that reflect their values and promote responsible growth.

HESTA invests in renewable energy and education and drives positive social change. It balances financial performance with social responsibility and sustainability while giving members ethical growth options aligned with global trends.

Personalised Support for Every Member

HESTA has advisory services, retirement planning tools and calculators to help members make informed financial decisions. Insurance options within super accounts means extra peace of mind and wealth accumulation for retirement.

All Ages and Career Stages

HESTA is with members every stage from career start to retirement. Its advice services help with super accumulation and pension transitions so members can choose strategies for growth and security.

Flexible long term super management HESTA has retirement planning resources as careers wind down. It combines affordability, strong returns, many options and sustainability to help Australians achieve financial security.

Hostplus

Hostplus is a well known Australian super fund, low fees, strong returns and many options. Established in 1988 it serves hospitality, tourism and sporting industry workers.

Open to all industries Hostplus has solutions for individual retirement needs. Its focus on affordability and long term growth means members can have financial security with confidence.

Low Cost, Maximum Return

Hostplus’s low cost options means members get more returns and better outcomes. The Indexed Balanced option with low fees and steady returns is a member favourite.

By reducing unnecessary costs Hostplus helps members achieve their retirement goals. This is about delivering value and long term financial security for all members.

Many Investment Options

Hostplus has many investment strategies to suit different risk levels and financial goals. Options from conservative to growth so members can shape their super to their retirement aspirations.

This means members have control over how their funds are managed and grown. Hostplus lets members choose how their investments are aligned to their individual timelines and goals.

Growth for the Future

Hostplus has strong returns through its Balanced option which has been delivering for decades. Strategic asset allocation and risk management means members’ investments are protected from market volatility.

Commitment to Sustainability

Hostplus includes environmental, social and governance (ESG) considerations in its investment approach so members’ values are reflected. This balances sustainability with long term profitability and growth.

Investments in renewable energy, climate focused projects and socially responsible investments show Hostplus’s commitment to sustainability. These help ethical financial practices and global positive change.

Whole of Life Member Support

Hostplus has plenty of support, tools like calculators and personal advice to help members. Insurance within super means members can make informed decisions throughout their financial life.

Support for Life

Hostplus is with members every stage of their super journey from accumulation to retirement. Its pension options and advice services help members get the most out of their savings and have confidence in their retirement goals.

Hostplus has affordability, strong returns, many options and sustainability for all members. Whether just starting or nearing retirement it has the tools and strategies for long term financial security.

Top Super Funds

Superannuation is a key financial tool for a comfortable retirement. By choosing a top performing super fund individuals can get better outcomes. Below is an overview of some of the top super funds in Australia with real data and examples.

Long Term Performance

Top super funds in Australia have long term performance.

For example AustralianSuper, the largest super fund in the country, has returned 8.22% p.a. for its Balanced option over the last 10 years (as of June 2023).

Hostplus’s Growth option has returned 9.64% p.a. over the last 10 years making it one of the best in the industry.

Industry average for balanced super funds over the same period was around 7.5%.

This means more retirement savings. For example a member with a $50,000 balance who contributes $5,000 p.a. could have $560,000 in 30 years with AustralianSuper compared to $480,000 with industry average.

The funds’ performance is due to diversified investment strategies including Australian and global equities, infrastructure and property.

Members can rely on their history of growth over the long term.

Low Fees

Fees matter to the final retirement balance and top funds have competitive fees.

HESTA, the super fund for health and community services workers, has an administration fee of $1.25 per week plus 0.11% of the member’s balance p.a.

Many retail funds have administration fees over $2 per week and investment fees up to 1.5%.

For a member with a $100,000 balance HESTA’s total fees would be around $210 p.a. while a high fee retail fund would be over $1,500 p.a.

Over 20 years this would save members over $26,000.

Funds like Australian Retirement Trust use their size to offer low cost options.

Their Balanced Growth option has total fees of 0.58% including administration and investment fees which is below the industry average of 0.85%.

Many Options

Top super funds have many options to suit different member needs.

Aware Super has ethical options for renewable energy, sustainable agriculture and affordable housing.

As of 2023 Aware’s Socially Responsible Growth option returned 7.9% p.a. over 5 years.

For members who prefer traditional growth portfolios Hostplus has sector specific options such as Australian equities which returned 10.1% p.a. over 10 years.

Members with a higher risk tolerance can choose self managed options to invest directly in shares or ETFs.

These options allow members to tailor their investments.

For example a younger member might choose a high growth option to maximise returns while those nearing retirement might choose conservative options to preserve capital.

More

Beyond performance top funds offer more.

Australian Retirement Trust has free tools like the Retirement Income Calculator so members can estimate their retirement income. Over 150,000 members have used this tool in the past year.

Insurance is another feature.

HESTA has default insurance for life, TPD and income protection. For a 40 year old member earning $80,000 p.a. this would cost $250 p.a. which is much lower than external insurance policies.

Funds also invest in technology to improve member experience.

For example the Hostplus app allows members to track contributions, switch investments and view performance updates. Over 500,000 downloads and 4.7 stars on app stores.

Manage Your Super

To get the most out of your super:

• Monitor Performance: Check your fund’s performance regularly and compare to industry benchmarks.

• Use Online Tools: Most funds have apps and online platforms to track contributions, manage investments and project future savings.

• Consider Voluntary Contributions: Boost your retirement savings by making extra contributions which may also have tax benefits.

Conclusion

Super is a key part of a comfortable retirement. By setting up your super correctly, consolidating accounts and choosing a top fund you can get the most out of your long term savings. Check your fund’s performance regularly and use the tools and services to stay on track to your financial goals.

If you’re not sure where to start Moneysmart or financial advice can help you make informed decisions. Start early, stay engaged and have peace of mind.

FAQs

What is super and why is it important?

Superannuation is a compulsory retirement savings system in Australia. It helps Australians save for retirement through employer contributions. It provides financial security in retirement by building wealth over the long term.

It’s important because it gives individuals an income in retirement. Super accumulates through contributions, investments and returns. Long term saving reduces the burden on the government pension in later years.

Having super means people can maintain their lifestyle in retirement. Good super management allows members to grow their savings. It’s key to the ageing population of the country.

How do I choose the right super fund for me?

Choosing the right super fund depends on fees, performance and investment options. Review different funds such as industry, retail or self managed superannuation funds (SMSFs).

Assess your risk tolerance, investment preferences and long term retirement goals. Industry funds have lower fees and a focus on returns. Retail funds may have more investment options and flexibility.

Look for super funds that offer advice and are responsive to your financial situation. Low fees, good returns and aligned investment options means your savings will grow to fund your retirement.

What are the different types of super funds in Australia?

In Australia there are three main types of super funds: industry funds, retail funds and self managed superannuation funds (SMSFs). Industry funds have lower fees and are focused on members.

Retail funds have more investment options but higher fees. They are for individual investors and may have bespoke strategies based on personal preferences.

SMSFs give individuals full control over their super investments, flexibility and personal investment options. But they require more involvement in decision making and compliance with regulations, takes time and expertise.

How do I start a super account?

To start a super account choose a super fund and complete the application. Many funds have easy online account setup. You’ll need your personal details and employment information.

Once you’ve chosen your fund provide the necessary documents such as identification and bank account details. Most super funds will request your tax file number (TFN) for compliance purposes. Your employer will be notified.

You can start your super account through your employer, the super fund directly or an online application system. Funds will ask for income details so contributions can start flowing in straight away.

What do I need to provide to start a super account?

To start a super account you’ll need your tax file number (TFN), employment details, bank account details and contact information. You’ll also need proof of identity documents.

You’ll also need your current address for communication. Some funds may ask for your beneficiaries details so the benefits can be transferred upon your passing. Always keep this information up to date.

Some super funds may also ask about your risk tolerance and financial goals. Providing accurate information helps the fund tailor your investment strategy and determine your contribution levels.

Can I have multiple super accounts?

Yes you can have multiple super accounts if you’ve changed jobs or switched super funds over time. But having multiple accounts can cost more.

It’s legal but managing multiple accounts can get complicated. Funds charge management fees for each account so it adds up to more costs that can slow down your retirement savings. Consider consolidating multiple accounts.

Multiple super accounts also makes it harder to track your retirement savings. Consolidating accounts will simplify your super and you can monitor the balance and fund performance over time.

How do I consolidate multiple super accounts?

To consolidate multiple super accounts contact the Australian Taxation Office (ATO) or your super fund. You can usually do it online. Transfer fees and taxes apply.

Before consolidating make sure the funds are compatible by reviewing their features such as performance, fees and investment options. You can keep your preferred fund’s features during the process.

Consolidation simplifies retirement savings by merging multiple funds into one. But some funds may charge exit fees or tax implications so make sure to review before consolidating.

What are the benefits of consolidating my super accounts?

Consolidating super accounts means lower fees and your super grows faster. Fewer accounts means fewer management fees, admin fees and overall complexity in tracking your retirement savings.

It’s easier to manage. Tracking one super fund balance gives you clearer insights into investment options, performance and future returns. Focusing on one account helps you plan for retirement.

Consolidation eliminates the risk of losing track of dormant accounts. It maximises your financial security by keeping your retirement savings in one well managed portfolio for a more sustainable outcome.

How do I tell my employer my super fund?

To tell your employer your super fund, complete a Standard Choice Form. Give your employer the super fund details including the fund’s name, ABN and your account number.

Employers are required to accept your chosen super fund if you give them the form within 28 days. Submit your choice early to avoid default fund payments.

If your employer has already been notified, future contributions will be directed to your chosen fund. Always check with your HR department to make sure the payments are processed correctly.

What is a Standard Choice Form and how do I use it?

A Standard Choice Form is a government approved form that allows employees to choose a super fund. The form requires details of the employee’s chosen fund including the fund’s name and ABN.

To use the form, fill in your personal details and select your preferred super fund. You must submit this form within 28 days of starting a job or a fund change to avoid default super.

Employers must comply with the choice and direct contributions to the nominated super fund. Keep a copy of the completed form for future reference and to track your super.

How much should I contribute to my super?

The Australian government requires employers to contribute 10.5% (as of 2025) of your salary into your super fund. But voluntary contributions can help you grow your wealth faster and more retirement savings.

If you can, contribute more than the minimum. A higher contribution means more savings over time. Contribute extra if you want to live comfortably in retirement.

Contributions can be concessional (pre-tax) and non-concessional (after-tax). To determine the right contribution amount consider your financial goals and retirement income needs.

What are the tax benefits of contributing to super?

Contributing to super has tax benefits, especially through concessional contributions which are taxed at 15%. This reduces your taxable income and can mean tax savings.

Non-concessional contributions made with after tax money are not taxed when added to your super. Both types of contributions reduce your overall taxable income and grow your retirement savings.

If your income is below a certain threshold, super contributions may be eligible for government co-contributions to boost your savings. Check your eligibility to make the most of the tax breaks.

How do I make extra voluntary contributions to my super?

To make voluntary contributions to your super, direct extra payments to your super fund either via salary sacrifice or direct transfers. Many funds have online systems to track your contributions.

Salary sacrifice is a popular option. It’s directing part of your pre-tax salary into your super fund so you save more without increasing your tax. Direct contributions give you flexibility in the amount.

Voluntary contributions can be concessional (15% tax) or non-concessional (no tax). Try to contribute regularly to have a big retirement balance designed for long term financial freedom.

What’s the difference between concessional and non-concessional contributions?

Concessional contributions are made before tax is deducted and are taxed at 15%. These can include salary sacrifice and employer contributions and get lower tax rates.

Non-concessional contributions are made after tax is paid and are not taxed when added to your super. They have a higher annual cap than concessional contributions.

While concessional contributions are tax effective, non-concessional contributions help you add to your super without tax implications on entry. Both contribute to long term wealth growth and more retirement savings.

Are there limits to how much I can contribute to my super each year?

Yes, there are annual caps for both concessional and non-concessional super contributions. For the 2024/2025 financial year, the concessional cap is $27,500 per year including employer contributions.

The non-concessional cap is $110,000 per year. If you’re under 67 you may be able to use the 3 year rule and contribute for 3 years in one year.

Exceeding these caps means excess contribution tax so keep track of your contributions and plan within the caps. Always review your contribution strategy with financial advice if needed.

What happens to my super if I change jobs?

If you change jobs you can keep your super with your existing fund or transfer it to your new employer’s super fund. Tell your employer of your preference.

Not telling your employer may mean contributions are directed to their default super fund. Having multiple super accounts can mean extra fees and reduced retirement savings from double charging.

Transferring your super to one account means your retirement savings stay consolidated. By keeping track of contributions, fees and performance you’ll get better returns for long term security and wealth building.

How do I set up a self managed super fund (SMSF)?

To set up a self managed super fund (SMSF) you need to establish a trust, appoint trustees and register your SMSF with the Australian Tax Office (ATO). Your SMSF must comply with legal and taxation rules.

Make sure you meet ATO compliance requirements, manage your accounting records and ensure your investment strategy aligns with your retirement goals. You must prepare annual financial statements and have your fund audited.

Many superannuation companies or financial planners specialise in SMSF services and can help with establishment and fund management. Consider getting professionals to navigate the compliance and regulatory landscape.

What are the responsibilities of managing an SMSF?

Managing an SMSF means complying with superannuation laws. Trustees must follow investment strategy rules, limit their SMSF’s liabilities and get tax done by the due dates.

Investments must be in accordance with the sole purpose test which means funds must benefit the members’ retirement. Regular audits, financial statements and tax obligations must be kept up to date for ATO compliance.

Fund trustees also have the responsibility of selecting investments for the SMSF. This means constant monitoring, managing risk and keeping up to date with regulatory changes to grow the members’ funds long term.

How do I monitor my super investment performance?

Most super funds have online portals where you can check your investment performance including detailed breakdowns of asset allocation, returns and fees. Log in regularly to see how you’re going.

You can also use independent resources like Moneysmart to compare your fund’s performance against industry benchmarks. Fund performance depends on investment options, economic conditions and market trends.

Revisit your strategy every year to stay on track for your retirement goals. Your fund may also have financial advisors to help you adjust your investment choices based on market conditions.

When and how can I access my super?

You can access your super when you meet a condition of release, usually after 65 or your preservation age (which varies depending on your birthdate). You can claim a pension.

Some special circumstances like severe financial hardship may allow early access. To claim super you’ll need to complete the application and submit the required documents to the fund or ATO for assessment.

Accessing super early is subject to certain conditions and doing so too early can impact your retirement savings. Always consider the long term implications of accessing your super earlier than expected.

Originally Published: https://www.starinvestment.com.au/how-to-set-up-superannuation-2025-top-super/