Australia's universal superannuation system is the envy of the world and the blueprint for similar schemes globally, having transformed the Australian economy since its introduction in the 1980s.
We become part of the $3.6 trillion system from the time we get our first job and start paying a portion of our salary into our account. Super also slashes government expenses and funds Australia's biggest – and some of its smallest – businesses. So, it pays to know how it works.
In 1986, Bob Hawke's Federal government kickstarted the current system with the Retirement Income Policy Review. The superannuation guarantee (SG) was subsequently introduced in 1992 at 3% of qualifying employees’ salaries, typically public servants and white-collar staff from big businesses, during Paul Keating's time as prime minister.
Today, an employer must pay 11% of an employee's ordinary time earnings into their super fund, with this figure scheduled to rise
