What is superannuation and how does it work?
Superannuation is money set aside during a working life for retirement. Employers must pay the super guarantee, 12% of ordinary earnings from 1 July 2025, into an employee's fund, and people can add more within yearly caps. Super is generally preserved until a person retires after reaching preservation age. Advice on super is provided by MGB Financial Services Pty Ltd.
This page is about super during working years. For turning super into income after work, see retirement planning. For a self-managed fund, see SMSF adviser Sydney.
General information. Reviewed 16 October 2026. Rules, caps and benefit tests change. Current figures are published by the Australian Taxation Office, Moneysmart and Services Australia.
Who is superannuation for?
People who have changed jobs and hold more than one account. Employees thinking about salary sacrifice. Self-employed people who are not covered by the super guarantee. High earners who want to understand how contribution caps and Division 293 tax interact.
What does the advice cover?
The issues super raises during working years
The ATO sets the super guarantee rate at 12% of ordinary time earnings from 1 July 2025. For 2026–27 the ATO lists the concessional (before-tax) contributions cap at $32,500 and the non-concessional (after-tax) cap at $130,000, with eligibility depending on the person's total super balance. Source: Australian Taxation Office, checked 21 October 2026.
Multiple accounts can mean paying more than one set of fees and insurance premiums. ASIC's Moneysmart explains how to find lost or unclaimed super through myGov. Combining accounts can end insurance cover held in an account that is closed, which is a common question.
Most super funds are regulated by APRA. Self-managed super funds are regulated by the ATO. Comparing funds involves fees, investment options, insurance and services, and is a personal decision.
- Super guarantee and whether an employer is paying it.
- Concessional and non-concessional contribution caps.
- More than one account, fees and insurance inside super.
- Investment options within a fund.
- Beneficiary nominations, which decide who may receive super after a member dies.
What the process looks like
The super question
The first conversation with Vermilion is about the question: accounts, contributions or insurance. No recommendation is made in that conversation.
An introduction, if advice is wanted
Where an introduction is requested, the enquiry goes to MGB Financial Services, which explains the scope and the fees before personal advice is prepared.
Advice in writing
Where personal advice is given, it is documented in writing before any decision is made.
Limits
- Super balances can fall as well as rise.
- Caps, tax rules and thresholds change. The ATO publishes the current figures.
- Combining accounts can end insurance cover held in a closed account.
Questions
FAQs
What is the super guarantee rate?
The ATO sets the super guarantee at 12% of ordinary time earnings from 1 July 2025. Employers pay it into the employee's nominated fund on top of wages.
How is lost super found?
ASIC's Moneysmart explains that lost or unclaimed super can be found by linking the ATO to a myGov account. The ATO lists every account it holds in the person's name.
What is the difference between this page and retirement planning?
This page covers super during working years: contributions, caps and accounts. Retirement planning covers how super and other savings might pay for life after work, including income streams and the Age Pension.
Is consolidating super accounts a good idea?
It depends on fees, investment options and any insurance held in each account, so it is a matter for personal advice. This page does not recommend consolidating. Advice is provided by MGB Financial Services after an introduction.
The advice provider
Credentials of the practice
Financial advice is provided by MGB Financial Services Pty Ltd, Authorised Representative No. 428617 of Charter Financial Planning Limited. The practice gives personal advice only through people who are registered to do so. This website does not name an individual adviser.
You can search the ASIC Financial Advisers Register for the practice and for the people authorised to give personal advice. The Financial Services Guide sets out the services, how the practice is paid, and how to complain.
Complaints can be raised with MGB Financial Services, then with Charter Financial Planning using the details in the Financial Services Guide, and then with the Australian Financial Complaints Authority ( afca.org.au, 1800 931 678).
General advice warning
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
